Oil Tanker Rates Hit Record as Buyers Seek Russia Alternatives

The cost of hiring an oil supertanker on a benchmark route spiked to the highest in more than five years, as buyers seek alternatives to sanctioned Russian crude amid increased supply from Middle East and US producers.

Benchmark rates for very-large crude carriers that can transport up to 2 million barrels from the Middle East to China rose to nearly $137,000 a day at the end of last week, marking a 576% increase this year. It was the highest since late April 2020, and surpassed the last peak reached just two weeks ago. A broader index covering VLCC rates on several routes also hit $116,400 a day, a fresh five-year peak.