-- The ongoing Middle East conflict has prevented crude oil tankers from entering the Persian Gulf, increasing the availability of vessels in the Atlantic and European markets, and dragging tanker rates down to pre-war levels, according to an Argus analysis on Tuesday.
Argus data showed that Suezmax rates for the Black Sea-Mediterranean route recently fell to $27.69 per metric ton, following a 50% drop over two days, due to a high supply of tankers. The rates surged to $57.19/mt in late March, up from $24.08/mt the day before the war began.
For Asia-bound tankers, rates were lower despite robust demand for Atlantic basin crudes, such as CPC Blend and BTC Blend.
For Suezmax heading to Europe from the US Gulf Coast and Guyana, rates fell to their lowest since the start of the war, according to Argus.
A similar trend was observed for very large crude carriers, after a charterer, cited by the news agency, booked a vessel for loading from the US Gulf Coast at the lowest rate since the war began.
European Aframax rates also slipped, likely to compete with Suezmax levels, despite higher demand from Mediterranean refiners that turned to Libyan crude, to replace Iraqi grades lost due to the closure of the Strait of Hormuz.