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Market Chatter: Trafigura Shipping Chief Says Middle East Tanker Buying to Sustain Shipping Boom

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Trafigura's head of shipping said Middle Eastern energy producers' accelerating acquisition of oil tankers will continue to fuel a broader boom across the shipping industry, Bloomberg reported Monday.

Producers across the region are reportedly seeking to expand their fleets through vessel purchases, aiming to secure reliable oil transportation through the Strait of Hormuz and reduce exposure to soaring freight rates.

Daily rates on the Persian Gulf-to-Asia route exceeded $1 million last week, boosting tanker owners' pricing power. Trafigura's global head of shipping, Andrea Olivi, reportedly said the push to acquire vessels could sustain higher tanker earnings and asset valuations. New-build supertanker prices have risen above $200 million, up about 50% this year, the report said.

Trafigura did not immediately respond to a request for comment from.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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