Tensions Rise in the Strait of Hormuz as Gulf Oil Producers Take Measures to Safeguard Crude Exports

Recent reports from the United Kingdom indicate that, due to increasing tensions affecting shipping security in the Strait of Hormuz, Gulf oil-producing countries have recently adjusted their crude oil export strategies through multiple approaches. These include building or expanding their own tanker fleets and adjusting transshipment models, resulting in simultaneous increases in tanker transaction prices and chartering rates, which has led to significant changes in the shipping market structure. Data from shipbroker Braemar shows that prices for new and relatively new large-class tankers have both surpassed $130 million last quarter, a new high since 2008. Meanwhile, annual charter rates for Very Large Crude Carriers (VLCCs) have also climbed to historic highs. Reports state that Abu Dhabi National Oil Company invested $1.3 billion this month to acquire six VLCCs and five large liquefied gas carriers, which have been rapidly put into operation. The company also plans to continue large-scale second-hand tanker acquisitions to further boost its shipping capacity. Earlier this month, Saudi national shipping company Bahri announced that its fleet had reached a record 107 vessels, and market analysts believe Saudi Arabia has further potential demand for ship acquisition. (CCTV News)