By Bill Lehane (Bloomberg) —
Earnings for oil tankers in the Middle East declined to the lowest level so far this year as the prospect of deeper OPEC+ production curbs darkened the outlook for the sector.
Freight earnings on the benchmark Middle East-to-China route declined by 21% on Friday to just $8,055 a day, according to data from the Baltic Exchange. That’s down by almost 90% since mid-June.
Saudi Arabia’s crude exports fell sharply in August as the kingdom leads an effort by the OPEC+ alliance to curb production and bolster oil prices. Observed flows from the kingdom slumped to about 5.6 million barrels a day, the lowest since March 2021, data compiled by Bloomberg show.
More pain could be on the way for oil tankers. Russia has agreed with its OPEC+ partners on further cuts to its crude exports, according to Deputy Prime Minister Alexander Novak.
© 2023 Bloomberg L.PThis article contains reporting from Bloomberg, published under license.
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