Oil Tanker Rates Soar To Astronomical Levels

Surging tanker rates are weighing on the crude trade two weeks ahead of the biggest uncertainty for physical oil flows this year—the EU embargo on Russian crude oil imports and the associated price cap on Russian oil. On Monday, the earnings on the benchmark key crude oil trading route hit $100,000 per day, according to Bloomberg’s estimates. That’s the highest crude oil tanker rate since the beginning of 2020, just before Covid sapped global oil demand. The much higher cost of shipping crude this year is the result of the longer…