Urals oil tanker freight rates retreat from record highs, sources say
USO•Freight rates for shipping Russian Urals crude to Asia fell in early November as global oil prices and tanker costs declined. Baltic-to-India Aframax voyages now cost about $19 million to $21 million, down from about $23 million in late October.
1. Shipping costs ease
Freight rates for shipping Urals crude from Russia’s western ports to Asia retreated from record highs in early November, trading sources said. Shipping Urals to India, which cost around $30 per barrel or more in late October, has since fallen to around $25 per barrel.
2. Route rates fall
Aframax voyages carrying about 100,000 metric tons from Russia’s Baltic ports to western India now average around $19 million to $21 million, down from about $23 million in late October. Suezmax voyages on the same route are around $23 million, versus $27 million at the end of last month; Black Sea-to-India Suezmax voyages have eased to around $25 million from near $30 million. Riverlake said Mediterranean Suezmax shipping costs had fallen by half from October 16 to Worldscale 552.5 by Monday.
3. Oil supply factors
The sources said November crude loadings could exceed planned volumes after renewed drone attacks on Russian refineries freed up more oil for export, potentially limiting further freight-rate declines. Oil prices fell below $90 a barrel on Tuesday for the first time since August, while the global tanker market was undergoing a broader correction.
