Home World News Oil shipping rates jump as US sanctions hit crude trade

Oil shipping rates jump as US sanctions hit crude trade

- Advertisement -

Key oil freight rates from the Middle East to East Asia climbed as much as 28 per cent on Friday in a global oil shipping market spooked by United States sanctions on units of c giant COSCO for alleged involvement in ferrying crude out of Iran.

In what the US State Department called “one of the largest sanctions actions the US has taken” since curbs were re-imposed on Iran in November last year, two units of COSCO were named alongside other companies in claims of being involved with sanctions-busting shipments of Iranian oil.

- Advertisement -

The surprise move, which affects one of the world’s largest energy shippers – operating more than 50 supertankers, comes as US President Donald Trump continues his campaign to exert “maximum pressure” on Iran.

According to Al Jazeera, as some Asian oil buyers rushed to secure vessels, rates for chartering supertankers – or very large crude carriers (VLCCs) – to load crude oil from the Middle East to Northeast Asia in October surged nearly 19 per cent overnight. c increased about 75-76 points on Worldscale, an industry tool used to calculate freight charges, shipping and industry sources said.

That means an increase of about $600,000 per ship, a Singapore-based crude oil trader told the Reuters news agency.

“The current strength in rates has been triggered by geopolitics,” shipbroker EA Gibson said on Friday. “This week’s US sanctions on two COSCO subsidiaries added more fuel to the fire.”

All Rights and Copyright © belongs to Source:

SOURCE: Read the Original Article on Reuters

HTML Image as link Qries
alltechng
Technology is making life more meaningful, improves productivity... We are tech lovers...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

lMotoroa launches new device designed for small, medium businesses

Motorola Solutions said it has launched a new two-way radio device specially designed for small and medium businesses in Sub Saharan Africa. The MOTOTRBO...

OnePlus 7 Series New Update

OnePlus has started rolling out a new software update (10.0.7 and 10.3.4 ) for the OnePlus 7 and 7T series. Notably, it brings July security...
video

New POCO Coming?, realme X3 Pro With 65W Charging, iQOO 5 On 17th Aug, Galaxy M31s, Pixel

New POCO Coming?, realme X3 Pro With 65W Charging, iQOO 5 On 17th Aug, Galaxy M31s, Pixel
video

Samsung Galaxy Note 20 Ultra VS Samsung Galaxy S20 Ultra | Comparison

Samsung Galaxy Note 20 Ultra VS Samsung Galaxy S20 Ultra | Comparison

New Arena Gun Game as PUBG Mobile Adds Ancient Secret Mode

The PUBG Mobile World League Season Zero is going on, and we will get to watch the finals tomorrow. However, in the meantime if you’re looking...
error: Alltechng Content is protected !!