Oil Shipping Squeeze Creates New Bottleneck as Tanker Rates Go 'Parabolic'
USOI is trading near its 52-week low of $41.9 (7.4% above the low).
Summary
The global oil crisis has entered a shipping phase, with tanker charter rates described as 'pretty parabolic' by Vitol's CEO. About 12M bbl/day of crude and 2M bbl/day of refined fuels are moving through the Strait of Hormuz via U.S. Navy convoys, but the method is inefficient, tying up ships for days or weeks. North Sea cargoes sold for $145/bbl last week, and European refining margins have turned negative, potentially forcing production cuts. This adds a new supply-chain constraint on top of existing crude and product shortages, keeping prices elevated with no obvious solution.
At the time of this announcement, USOI was trading at $44.98 on NASDAQ in the Energy & Transportation sector. The 52-week trading range was $41.90 to $61.30. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.