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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A container ship signaling French ownership has exited the Strait of Hormuz, in what appears to be the first known transit by a vessel linked to Western Europe since the war all but shuttered the vital waterway.
The Strait of Hormuz—one of the world’s most critical energy chokepoints—remains effectively closed, sending shockwaves through global trade, energy markets, and financial systems, according to a new report from the United Nations Conference on Trade and Development.
In recent days, the operator of an oil tanker stuck in the Persian Gulf received a compelling proposal. After weeks at anchor with missiles and drones passing overhead, it could finally sail safely out through the Strait of Hormuz and into the open ocean — escorted by the Iranian Navy. But first it would need to change its registration and raise the flag of Pakistan, according to a company executive, speaking on condition of anonymity in order to discuss sensitive conversations.
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