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2025-09-18 18:11:10
Middle East Crude Oil Exports Surge, Tanker Freight Rates Hit a Two-Year High. (1) Large tanker freight rates surged to their highest level in over two years on September 18th. The freight rate index for the key Middle East to China route (TD3C) reached W108, its highest point since November 2022 and up nearly 150% from the beginning of the year. (2) Industry data shows that Middle East crude oil exports exceeded 18 million barrels per day for the first time in September, reaching their highest level since April 2023. This was driven by the agreement by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to increase production. (3) Strong Asian demand is attracting arbitrage crude oil supplies from the Atlantic Basin, forcing tankers to make longer voyages. For example, Indian refiners are increasing purchases of US crude oil, while independent refiners are also buying crude oil from Brazil and West Africa. (4) This trend has led to tight tanker supply, pushing up freight rates. Analysts expect this strong momentum to continue through the end of this year and into the first quarter of next year. 5. A shipping research manager said that Saudi Arabia is exporting more crude oil as the demand for oil for power generation in the summer ends. Trump's tariff remarks have caused market concerns about the supply of Russian crude oil, which may further push up freight rates.
