Published • loading... • Updated
Energy disruption hits Bangladesh and Pakistan as Gulf crisis worsens
A shortage of available supertankers is pushing VLCC rates above $1 million a day and making long-haul crude trades uneconomical, traders said.
- The Abu Dhabi National Oil Company expanded ship-to-ship shuttle operations off Oman, creating a floating logistics network to maintain crude exports amid escalating regional conflict in the Middle East.
- Following Iran's blockade of the Strait of Hormuz, regional instability forced producers to develop alternative export routes to bypass active conflict zones like the Bab el-Mandeb Strait.
- September shipments reached around 2.5 million barrels per day via this method, accounting for roughly 40% of the total volumes moving through Hormuz as producers struggle to keep exports flowing.
- As Red Sea routes became ineffective, Saudi Aramco increased reliance on these transfers while freight rates for crude surged to above $30 per barrel, marking a record high according to LSEG data.
- While the global energy market is "adapting to today's heightened geopolitical risk," Keshav Lohiya, CEO of HiLo Analytics, noted the Middle East's oil trade remains increasingly inefficient and dependent on expensive patchwork solutions.
Insights by Ground AI
Podcasts & Opinions
85 Articles
85 Articles
Oil Tanker Rates Top $1 Million a Day—3 Ways Investors Can Trade the Surge
As the Iran conflict pushes tanker rates past $1 million per day, investors weigh Okeanis Eco Tankers, International Seaways, and the Breakwave Tanker Shipping ETF as ways to trade the shipping surge.
·Sioux Falls, United States
Read Full Article
Coverage Details
Total News Sources85
Leaning Left8Leaning Right15Center23Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 17%
C 50%
R 33%
Factuality
To view factuality data please Upgrade to Premium
