Prices for shipping crude oil on the world's top export routes from the Gulf soared to more than three-year highs on Monday, breaching the W300 mark for the first time since late 2004 when rates struck 30-year highs.
The benchmark Very Large Crude Carrier (VLCC) route from the Gulf to Japan was assessed at W302.5, for the average of single-hulled and double-hulled tankers for Asian voyages.
Crude oil freight costs on other principal export routes from West Africa and the Mediterranean have also shot higher, mirroring the move.
Brokers said the rise followed the booking of the double-hulled 270,000 tonne Al Japriyah II from the Gulf to Thailand at W312.50 in the second half of December, equivalent to a whopping US$300,000 per day.
They estimated single-hulled vessels at W290 and double-hulled units at W315.
Rates are now closing on record highs struck in November 2004 when Chinese oil demand and a recovery in global economic growth spurred rates to 30-year highs of W350 for the bellwether VLCC route to Japan.
Rates then were at their highest since the Arab oil embargo and subsequent oil crisis in 1973-1974.
Crude oil rates on the benchmark export routes have shot up 500 per cent on peak northern hemisphere winter demand for fuels and the output increase of 500,000 barrels per day by the Organisation of Petroleum Exporting Countries (Opec) since Nov 1.
An oil spill off South Korea two weeks ago involving a single-hulled oil tanker has also stoked the market, shipping brokers say.
The leap is a dramatic about-turn for crude oil freight markets which have been knocked hard this year by a bearish combination of rising fleet supply, long-standing Opec cuts and a lack of storm-related disruption to global oil flows.
Rates on top global routes to transport crude oil had been mired close to four-year lows in the summer.
The benchmark Very Large Crude Carrier (VLCC) route from the Gulf to Japan was assessed at W302.5, for the average of single-hulled and double-hulled tankers for Asian voyages.
Crude oil freight costs on other principal export routes from West Africa and the Mediterranean have also shot higher, mirroring the move.
Brokers said the rise followed the booking of the double-hulled 270,000 tonne Al Japriyah II from the Gulf to Thailand at W312.50 in the second half of December, equivalent to a whopping US$300,000 per day.
They estimated single-hulled vessels at W290 and double-hulled units at W315.
Rates are now closing on record highs struck in November 2004 when Chinese oil demand and a recovery in global economic growth spurred rates to 30-year highs of W350 for the bellwether VLCC route to Japan.
Rates then were at their highest since the Arab oil embargo and subsequent oil crisis in 1973-1974.
Crude oil rates on the benchmark export routes have shot up 500 per cent on peak northern hemisphere winter demand for fuels and the output increase of 500,000 barrels per day by the Organisation of Petroleum Exporting Countries (Opec) since Nov 1.
An oil spill off South Korea two weeks ago involving a single-hulled oil tanker has also stoked the market, shipping brokers say.
The leap is a dramatic about-turn for crude oil freight markets which have been knocked hard this year by a bearish combination of rising fleet supply, long-standing Opec cuts and a lack of storm-related disruption to global oil flows.
Rates on top global routes to transport crude oil had been mired close to four-year lows in the summer.