Freight rates for supertankers, capable of carrying up to 2 million barrels of oil, have surged to levels not seen in almost three years due to rising crude supply from OPEC+ and South America. The strength in the supertanker market is expected to spill over to smaller-sized vessels like Aframaxes and Suezmaxes. VLCC rates on the Middle East-to-China route hit $100,000 per day, the highest in nearly three years, driven by increased supply from the Middle East and Americas and stronger flows to Asia. As OPEC+ boosts production and Saudi Arabia cuts oil prices for Asia, tanker rates are expected to remain strong. The global tanker fleet is split between those complying with sanctions on Iran and Russia and those in the shadow fleet, impacting supply movements. Spot rates for VLCCs have soared to at least $6.6 million, the highest since November 2022. While demand for long-distance oil shipments is robust, high shipping costs may narrow the US-Asia arbitrage window. The surge in shipping costs and WTI premiums has dampened the Atlantic market, according to brokers Fearnleys.

Read more at Yahoo Finance: Supertanker Rates Hit Three-Year High on Rising Crude Flows