Super large oil tankers' daily rental rates continue to rise, with Middle Eastern oil shipping giants asking for $200,000 a day

Caixin February 26 News (Editor: Shi Zhengcheng) The cost of chartering a super-large oil tanker (VLCC) to transport crude oil from the Middle East to Asia broke through $170,000 per day on Tuesday and surpassed the $200,000 mark on Wednesday, reaching a new high since 2020.

According to shipping tracking platforms and broker reports, Saudi Arabia’s national shipping company Bahri has chartered the DHT Jaguar super-large oil tanker at a rate equivalent to $208,000 per day. The largest crude oil transporter in Saudi Arabia has also leased an additional four VLCCs, which will deliver Middle Eastern crude to Asia over the coming weeks.

As these bookings occurred, the oil shipping market prices surged due to the US-Iran standoff, and the aggressive purchase of oil tankers by South Korean shipowners also supported market prices. At this critical juncture, major Middle Eastern oil-producing countries, led by Saudi Arabia, are accelerating shipments.

Generally, shipping companies only charter additional vessels when their own fleet is insufficient to meet transportation needs. Data shows that Bahri’s vessel chartering volume has reached a six-month high.

As export pricing drops to its lowest in nearly five years, Saudi crude oil port shipments are approaching their highest levels in three years. Besides the gains from OPEC+’s decision to halt production cuts, seasonal declines in domestic crude oil demand for power generation in Saudi Arabia have also released additional export capacity.

Tracking data indicates that Saudi crude oil exports surged to 7.3 million barrels per day in the first 24 days of February, the highest since April 2023. If this level persists until the end of the month, it will be a 400,000 barrels per day increase compared to January.

Beyond Saudi Arabia, broader regional shipments are also rising. Vortexa data shows that Iraq, Kuwait, and the UAE combined exported about 8.82 million barrels per day in the first 24 days of February, nearly 600,000 barrels per day more than in January.

Meanwhile, Kpler data indicates Iran is loading large volumes of crude oil at its export hub, Kharg Island. Between February 15 and 20 alone, about 21 million barrels of oil were loaded onto ships, nearly three times the volume transported during the same period in January. This practice is consistent with the pre-conflict escalation period. Satellite images show that the number of oil tankers waiting near Kharg Island in mid-February doubled.