Middle Eastern crude oil exports surge, tanker freight rates soar

Against the backdrop of a possible military conflict between the United States and Iran, crude oil exports from the Middle East have risen significantly in recent times. As traders seek to secure shipping capacity before any potential conflict breaks out, the cost of transporting oil by tanker has also surged sharply. According to data from the London Stock Exchange Group (LSEG), as of Tuesday local time, the daily charter rate for Very Large Crude Carriers (VLCCs) shipping from the Middle East to China has exceeded $170,000, reaching its highest level since April 2020. Data from shipping analytics firm Kpler shows that crude oil exports from the Middle East exceeded 19 million barrels per day in February, also the highest level since April 2020. The increase in exports mainly comes from Saudi Arabia, the United Arab Emirates, and Iran. Analysts believe that several factors are supporting the rise in VLCC freight rates: Venezuelan crude oil has returned to compliant shipping fleets, no longer relying on so-called "shadow fleets," thus occupying previously available capacity; OPEC+ has increased production, boosting demand for maritime transport; in addition, global refineries are maintaining strong demand for crude oil, with India being particularly prominent as its crude oil purchases shift from Russia to the Middle East. (CCTV Finance)