VLCC rates from the Gulf of Oman to China fell to about 776 Worldscale points from 841 last week, as demand eased and the US considered removing sanctions on some shadow-fleet tankers.
The cost of shipping oil on the largest tankers fell this week from record highs. Baltic Exchange data showed Gulf of Oman-to-China VLCC rates at about 776 on the Worldscale basis, down from 841 last week, the highest since the rate was launched earlier this year.
Kpler analyst Matthew Wright said demand on the route softened after fresh attacks, as higher Middle East Gulf freight rates and lower export volumes reduced demand. Sparta Commodities analyst Michael Ryan said US administration comments about potentially removing sanctions on some shadow-fleet tankers pushed rates lower; removing the sanctions would increase the number of ships able to carry oil.
Rates remain close to record highs. The war has increased the use of ship-to-ship transfers to move oil out of the Strait of Hormuz, boosting tanker demand; elevated shipping costs could add to inflationary pressures and raise costs for businesses and consumers. Rates also eased this week on routes including West Africa to Asia.
