Categories: Stocks News

So has impacted the crisis in the oil prices and the rates of the ‘tankers’

Related news

The energy sector has been one of the most affected by the crisis of the coronavirus, with the price of a barrel of Brent falling 40% in dollars and West Texas, reference USA, 39%. However, the market of the ‘tankers’ has been a significant rise, despite the fact that several sectors of the maritime industry have been severely affected by the closing of ports and the fall of the demand.

The excess supply of crude oil and other fuel products, led by Saudi Arabia and other OPEC members, has been compounded by the demand severely decreased caused by the mandatory quarantine. This and the lack of storage on land to accommodate the excess oil products has caused the rates of the ‘tankers’ to increase astronomically.

In mid-march, the freight rates for oil tankers of crude oil of great size, also known as supertanqueros (VLCC), have surged nearly 10 times after Russia and Saudi Arabia said it would boost production, thereby initiating a price war that led to a fall in the oil prices. In such a way that in the first half of 2020, the daily rate of transportation of crude oil averaged $68,600 in key routes.

Today, these rates have returned to around $30,000 and is expected to worsen even more. BP, for example, recently posted to a carrier of crude oil (VLCC) Gene the daily rate of transportation of crude oil to To 20,500 dollars for three months and has the option of extending for a further three months to $ 22,000 per day.

On the other hand, the main traders of oil as Trafigura, Vitol, Litasco and Glencore they are once again booking tankers to store millions of barrels of crude oil and refined fuels in the sea with the global economic recovery from the pandemic coronavirus that shows signs of stagnation.

The booking of the ‘tankers’ has risen in a context in which the Brent contango has widened to around $3 per barrel compared to $2 per barrel last month. Low supply of ‘tankers’ and growing contango help support storage supertanqueros.

*** Igor Kuchma analyst at Trading View.

Ryan Helton

A Stock enthusiast since childhood, Ryan is known for his impeccable knowledge in the technology and gadgets niche. He has been working with eTrendy Stock as a contributor for most stock category and his articles are always well-researched and accurate.

Recent Posts

Sony Electronics Singapore Now Accepts USDC Payments via Crypto.com

Sony Electronics Singapore is now accepting payments in USD Coin (USDC) on its online store,…

9 hours ago

<div>Delta Exchange: Pioneering INR-Settled Crypto F&O Trading in India</div>

In the last three months of the year, trading volumes for cryptocurrencies like Bitcoin and…

2 days ago

Pi Network’s Token Sheds 75% in Three Months as Skepticism Grows

The Pi Network (PI) has plummeted over 75% in the past three months, collapsing from…

2 days ago

Chummy Tees Review Rising Trends in the Funny T-Shirt Industry

Sonora, California, 30th March 2025, ZEX PR WIRE, As humor continues to shape popular culture,…

3 days ago

UBX Powers UBC’s 15x Surge: AI and DePIN Innovation Reshaping Crypto Investments

Singapore, 30th March 2025, ZEX PR WIRE, Recently, the native token UBC issued by the…

3 days ago

Tether Eyes U.S. Stablecoin Launch Amid Regulatory Tailwinds

Tether is weighing a crucial entry into the U.S. domestic stablecoin market as CEO Paolo…

5 days ago