Story perspectives

Shipping premiums for tankers hit $77 million amid oil squeeze

By Drooid · Oct 15, 2026, 10:50 PM UTC · How we work

Summary

U.S. Shipowners Charter VLCCs

U.S. shipowners chartered VLCCs to Asia for $76 million and $77 million, ten times last year’s price.
Charter premiums add roughly $38 per barrel to oil’s base price.
Energy insiders say physical oil costs $125 per barrel or more, far above futures.
Oil volumes through the Strait of Hormuz are near pre-war levels, yet shipping premiums keep rising.
Shipowner stocks have risen sharply this month and year.

Summary

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History

Historical Context

In October 1973 OAPEC, led by Saudi Arabia’s King Faisal, imposed an oil embargo on the United States and other supporters of Israel, driving world crude from $3 to about $12 per barrel—a rise of nearly 300% by March 1974. The shock spiked VLCC charter rates, a pattern echoed today as premiums for Asia-bound tankers reach $76 million, reviving the freight-driven earnings swings seen for majors like ExxonMobil.

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U.S. Shipowners Charter VLCCs

U.S. shipowners chartered VLCCs to Asia for $76 million and $77 million, ten times last year’s price.
Charter premiums add roughly $38 per barrel to oil’s base price.
Energy insiders say physical oil costs $125 per barrel or more, far above futures.
Oil volumes through the Strait of Hormuz are near pre-war levels, yet shipping premiums keep rising.
Shipowner stocks have risen sharply this month and year.

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