Commodities Buzz: EIA Says Tanker Rates For Crude Oil And Petroleum Products Hit Record High

8 Dec 2022 , 12:56 PM

The US Energy Information Administration or EIA has noted in a latest update that the Tanker rates for crude oil, petroleum products, and liquefied petroleum gas (LPG) reached record highs in November 2022. These increases were driven largely by some of the effects of Russias full-scale invasion of Ukraine as well as delays at the Panama Canal. Tanker rates could increase through the winter because on December 5, 2022, the EU ban on importing seaborne crude oil from Russia took effect, and the G7 instituted a crude oil purchase-price cap of $60 per barrel for countries purchasing Russias crude oil using European banks, insurance, or shipping services. Historically, tanker rates increase during periods of low petroleum demand, when onshore storage fills and demand for tankers as a source of flexible, floating storage increases. MR clean tanker rates have risen to record highs since April 2020 and have remained elevated as of November 2022. Powered by Commodity Insights