– Oil recovers as earnings on the US Gulf Coast-to-China shipping route have soared above $100,000 per day. This is equivalent to $7 per barrel. This is demonstrating the shrinking availability of crude tankers lately.
– The Russia-Ukraine war and subsequent sanctions have lengthened the average shipping voyage globally. So now, charterers have fewer options and are forced to pay double the rate than over the summer months.
– Spot differentials for crudes across the Americas are tanking because of higher shipping costs. Free-on-board prices for WTI plummeted a whopping $5 per barrel week-on-week to reflect the shipping.
– The shortage of tankers is taking place across all vessel categories. This is even VLCC freight costs from the Middle East into Asia Pacific have tripled year-on-year.
– U.S. Eagle Ford-focused oil producer Ranger Oil (NASDAQ:ROCC) is reportedly mulling a potential sale to capitalize on high prices, with estimates putting the company at $2.0-2.2 billion.
– Brazil’s president-elect Lula da Silva has reportedly started interviews to overhaul the top management of state oil company Petrobras (NYSE:PBR), setting it up for some turmoil.
– Australia’s mining giant BHP Group (NYSE:BHP) presented a new bid for copper and gold producer OZ Minerals (ASX:OZL) totaling $6.5 billion, recommended by the latter’s board of directors.
Source: Oil Price
If you have further questions about the topic of how oil recovers, feel free to contact us here.