Bahri’s new charters prompt a tanker rate surge

Saudi Arabia’s decision to flood the oil markets with up to 12.3 million b/d of crude oil, which was followed by reports of Bahri’s move to charter up to 19 supertankers, has significantly boosted daily freight rates for Very Large Crude Carriers (VLCC)s.

 Saudi’s national shipping firm Bahri has provisionally chartered up to 19 very large crude carriers, six of them believed to be earmarked to ship crude to the United States, according to reports from Reuters.

The latest fixtures data from Tankers International show at least nine fixtures arranged by Bahri Oil Transportation for modern tankers over the past two days averaging at USD 70K per day. 

The fixtures further indicate that VLCCs are being hired for up to USD 299,900 per day as charterers scramble to secure floating storage for excess crude. Namely, the 2012-built Maran Antares, managed by Maran Tankers secured almost 300K per day from its charterer PTT from Thailand. 

This marks a major shift compared to the daily rates that averaged at USD 30,000 only last week. 

This all comes on the back of Saudi Aramco announcing steep discounts to its official selling price for April, which ignited a price war among major global producers.

The discounts were announced after OPEC’s proposal to cut production of oil by 1.5 million barrels per day failed to secure support from Russia, amid fears the production decrease would solely aid North American shale producers.

For more information visit www.bahri.sa

13th March 2020