Owners of crude oil supertankers are losing money just to keep their massive ships on the water, according to the International Energy Agency. The doldrums came as hiring rates fell while bunker fuel prices rose. Ship-tracking data showed that supertankers are sailing without cargoes at slower speeds to save fuel. These vessels are sailing an average of nearly 12% slower than they were a year earlier, which could result in savings of $4,100-$5,200 per day, depending on their fuels.
Prices of very-low sulfur bunker fuel in Singapore are about 50% higher than a year ago. While the prices have eased from their 2021 high in July, they still remain historically high. Freight rates on the Middle East to Asia route have dropped to their lowest since March. At the same time, the spread of the COVID-19 delta variant clouded the outlook for oil demand. Market sources said Asian refiners are reducing purchases from Middle Eastern producers as they expect fuel demand to weaken.
