finance
Asian Refiners Struggle to Book Tankers for Gulf Crude After Deal
PetroChina, Indian Oil, and Sinochem encountered high tanker rates and limited availability when seeking vessels to move Iraqi and Gulf crude to Asia. The companies cited costs nearly triple pre-conflict levels and uncertainty over transit terms.
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Two of Asia's largest refiners failed to secure very large crude carriers for late-June loadings of Iraqi Basrah crude, Reuters reported. PetroChina received offers at worldscale rates of 650 to 750 for a vessel to load between June 25 and 30, nearly three times the levels charged before the Iran conflict began in late February.
A PetroChina official said tankers are available but the rates are too expensive and there is no guarantee of exit through the Strait of Hormuz. The company noted that any contract would likely require a special clause covering strait transit.
Gulf-to-Asia tanker rates have doubled in recent weeks, according to shipping data cited in the report. Indian Oil received no offers in a tender last week for a VLCC to lift Iraqi crude on June 22-23 and deliver to Paradip on India's east coast. Indian Oil subsequently declared force majeure on that cargo.
Sinochem separately sought a VLCC to load Gulf crude between June 20 and 30 for delivery to Asia, though it remained unclear whether the company would obtain a vessel. The inquiries followed an interim United States-Iran deal that reopened the Strait of Hormuz for a 60-day period.
Despite the reopening, securing tonnage remains complicated by both elevated freight costs and contract uncertainties.
