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Tankers Flee Persian Gulf Amid Escalating Conflict
5 Mar
Summary
- Supertankers are diverting from the Persian Gulf due to conflict.
- A queue of over 60 empty VLCCs has formed south of India.
- Tanker rates have surged to historic highs due to demand.
Supertankers are increasingly abandoning planned voyages into the Persian Gulf, seeking safer destinations amidst rising tensions. Several very large crude carriers that were set to load oil in the Gulf have now diverted towards the Atlantic Basin. One vessel is heading for the Cape of Good Hope, while another is en route to the US.
This shift means fewer tankers will be available to load Middle Eastern crude once conditions normalize. Consequently, regional producers are filling their storage facilities. More than 60 empty supertankers are either holding position or reducing speed south of India, forming a miles-long queue. This situation has intensified the competition for available vessels and driven tanker rates to historic highs.
