AirstrikP Could Propel Tanker Rates Back into Stratosphere

If recent history is any indication, America’s killing of the head of Iran’s military, Qassem Suleimani, will drive already strong tanker rates even higher. Fallout could be “like putting a blowtorch to a pile of oily rags,” said Evercore ISI analyst Jon Chappell.

Spot rates for very large crude carriers (VLCCs; tankers that carry 2 million barrels of crude oil) currently average $96,600 per day, more than double the rates of a year ago.

When Middle East incidents occurred in 2019, they came at times when oil-trade volumes were…

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