How Russia's War On Ukraine Is Altering Global Crude Oil Trade | OilPrice.com

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How Russia's War On Ukraine Is Altering Global Crude Oil Trade | OilPrice.com
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The Ukraine-Russia war has rerouted crude tanker flows over the past year, equating to higher profits for shipowners. But the upside is not evenly spread. Midsize crude tankers have been the big beneficiaries.

, equating to higher profits for shipowners. But the upside is not evenly spread. Midsize crude tankers have been the big beneficiaries.

“Virtually all the additional [U.S.] sales to Europe were done on VLCCs,” wrote Erik Broekhuizen, manager of marine research at Poten & Partners, in a report Friday. “Preliminary information suggests that the number of VLCCs transporting U.S. crude to Europe could hit a record over the coming weeks,” BRS said.Changes in crude trade patterns since the war “have benefited the midsize sectors given that the main Russian load ports in the Baltic, the Black Sea and the Far East are all inaccessible to VLCCs,” explained Kevin Mackay, CEO of Teekay Tankers , during a conference call Thursday.

“Since the cannibalization trend arrived in mid-2022, charterers have become better at utilizing infrastructure in the U.S. Gulf,” explained BRS. “[They are] part-loading in ports and booking reverse lightering in advance to more efficiently load VLCCs.”

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