A surge in oil tanker earnings extended, with one route jumping the most in a day since 2022, as the disruption to traffic through the Red Sea lifts the cost of hauling some barrels.
Rates for vessels carrying fuel from the Middle East to Asia have almost tripled since the US and UK launched airstrikes on Yemen’s Houthi rebels — climbing to $83,000 a day from about $30,000, an increase of 182% since Jan. 12. Those ships mostly haul naphtha, a product used to make gasoline and plastics.
Earnings for other routes also are spiking.
The security situation in the Red Sea has deteriorated to the point where several oil product tanker companies say they’ll no longer carry cargoes through the waterway. That’s pushing many ships to sail thousands of miles around Africa, in turn reducing the number of vessels available in the spot market. (Bloomberg)