Middle East Oil Crisis Drives Supertanker Prices to Record Highs

The Middle East oil crisis has pushed supertanker prices to record highs, according to the Financial Times. The report cites data from shipbroking company Braemar, which shows that new and second-hand very large crude carriers have reached prices of over $130 million in the second quarter.

This surge in demand is driven by oil-producing countries' shift towards using their own tanker fleet to move oil amid growing unease among shipping majors to navigate the Strait of Hormuz due to frequent attacks on vessels. ADNOC, for instance, has bought six supertankers and five very large gas carriers for a combined price of $1.3 billion.

This acquisition has helped ADNOC maintain its oil exports from the Persian Gulf despite the Iranian blockade. The company plans to use shuttles to send its oil to tankers waiting in the Gulf of Oman, as reported by the Financial Times. Meanwhile, Iraq relies on international oil traders and buyers to move its crude due to a lack of its own tankers.