State-owned refiners in Asia reject VLCC offers as freight rates triple, disrupting June crude shipments from Iraq and the Persian Gulf.
PetroChina and other major Asian refiners have halted June crude loadings from the Persian Gulf after rejecting supertanker offers due to soaring freight rates. Freight costs for very large crude carriers (VLCCs) have tripled, making shipments uneconomical amid uncertainty over safe passage through the Strait of Hormuz.
Recent tenders for Basrah crude from Iraq saw PetroChina receive six VLCC offers, all declined due to prohibitively high prices. Similar disruptions have affected Indian refiners, with state-owned companies struggling to secure vessels for late-June loadings. The spike in rates follows heightened geopolitical tensions and reduced tanker availability in the region.
No immediate market reaction was reported, but the disruption could tighten Asian crude supply if prolonged, potentially supporting regional oil prices.