Demand from Middle Eastern oil producers has driven prices for very large crude carriers (VLCCs) and second-hand supertankers to unprecedented levels, according to data cited by the Financial Times.
Braemar, a shipbroking firm, reported that both new and used VLCCs reached values in excess of $130 million in the second quarter, while one-year charter rates for supertankers also hit record highs. The surge in demand reflects a strategic shift among Gulf oil exporters to rely on their own tanker fleets amid heightened security risks in the Strait of Hormuz, where vessel attacks have increased in frequency.
The United Arab Emirates’ state oil company, ADNOC, recently acquired six supertankers and five very large gas carriers for a combined $1.3 billion, with all vessels scheduled for immediate deployment. The purchases underscore the company’s push to secure its own logistics amid regional instability. ADNOC has also begun using shuttle tankers to transport oil to vessels stationed in the Gulf of Oman, bypassing the Strait of Hormuz entirely. The company’s logistics division has indicated plans for further investments in second-hand vessels to support its operations.
Kuwait Petroleum has adopted a similar strategy, leveraging its own fleet to maintain export flows despite regional disruptions. In contrast, Iraq lacks sufficient tanker capacity and must rely on international traders and buyers to transport its oil, forcing the country to offer significant discounts to offset the risks associated with navigating the Strait of Hormuz.
Analysts note that the shift toward self-reliance in tanker capacity highlights the growing premium placed on physical control of shipping assets in the current geopolitical climate.
