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2026-02-26 18:21:21
[VLCC Daily Charter Rates Surge Above $200,000, Middle East Crude Oil Market Reacts] ⑴ Dubai crude oil benchmark prices rebounded on Thursday, supported by strong buying from Total, the French energy giant which has taken on 26 cargoes of Omani crude oil for April loading this month, demonstrating strong demand from European refineries for Middle Eastern resources. ⑵ Freight rates experienced dramatic fluctuations. Daily charter rates for Very Large Crude Carriers (VLCCs) from the Middle East to Asia broke the $200,000 mark on Thursday, reaching the highest level since April 2020. The benchmark TD3 route freight rate has surged to W218.52 points, nearly quadrupling from the beginning of the year. ⑶ The capacity shortage has further intensified. Saudi Arabia's national shipping company, Bahri, has temporarily chartered three VLCCs, scheduled for loading between March 11 and 13, with rates remaining in the high range of W190-191. This surge in vessel bookings reflects that exporters in the region are locking in capacity in advance for the peak shipping season in the coming weeks. (4) In the spot market, BPCL of India purchased 2 million barrels of Middle Eastern crude oil through a tender, including DAS crude oil traded at a premium of $1 to $1.5 per barrel. Meanwhile, OPEC+ is planning a slight production increase in April, and Saudi Arabia has also launched a contingency plan to increase production and exports to address potential supply disruptions caused by the US-Iran situation. Under the interplay of these multiple factors, the Middle Eastern crude oil market is facing a triple repricing effect from supply, freight rates, and geopolitics.
