Chinas Hiring Pushes Oil Tanker Rates More than $100,000 a Day

Published By : 05 Oct 2015 | Published By : QYRESEARCH

Ever since 2008, the biggest crude oil tankers in the world earned more than $100,000 in a day despite the surge in Chinese bookings is slowing down the number of what is left on the charter.  

Several ships haul around 2mn barrel cargoes of Saudi’s crude to Japan marking earnings of $104,256 per day. The rate was 13% profit from Thursday, the highest from what was last seen in July 2008, according to the data from the Baltic Exchange in London.

Many bookings surged this week. Some were by the Chinese oil companies in the light to assemble oil from giants including West Africa and the Middle East. These regions are the biggest loading areas in the world, said NY-based analyst. The Asian country imported around 5.6% more than the previous year from a value of 26.3 mn metric tons of crude, said customs data.   

China was the most active region in the oil market. It was active with a record number of fixtures from all areas this week, said Los. This has been a surprising scene for the world and the analysts studying this region in the oil market. However, the rising of the rates will be a difficult task. 

Overabundance of oil prices drove down by around 50% from its peak in 2014. This lowered the fuel prices that equates to an owner’s cost and also keeping abundant supply of cargoes for owners. Part of the rise in the last few days has been due to the rise in number of charters for shipment to China from the major oil-driven regions. 

The shipments between Asia and West Africa aid tanker owners due to the distance involved in the trade route. The cargoes take up to 33 days to deliver and more than one-and-a-half times longer the deliveries from the Middle East.  

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