According to Reuters, PetroChina recently temporarily hired an aframax tanker at a high price, setting a record freight rate in the US and Europe, reflecting strong demand for low sulfur US crude oil.
PetroChina temporarily hired the aframax sea magic at the price of ws300, which was loaded on the Gulf coast of the United States. According to the refinitiv EIKON ship tracking data, the ship is currently moored near pascagura, Mississippi.
According to a ship broker, the price of ws300 is equivalent to about $100000 a day, which is higher than the peak of ws245 last week, which is about $60700 a day. It is expected that the crude oil will be shipped before January 4.
Analysts believe us crude oil exports could reach 4 million barrels per day for the first time in the coming months as US production approaches a record 13 million barrels per day.
In the context of the sulfur restriction order coming into effect on January 1, 2020, the international demand for light and low sulfur crude oil from the United States has been increasing. Ship brokers pointed out that after the US imposed sanctions on COSCO Shipping Group's subsidiaries, and traders sold crude oil before the end of the year inventory tax was levied, resulting in the shortage of available oil tankers and the rise in the freight rate of oil tankers.