Saudi Pipeline Restart Fails to End Oil Market Tightness

Saudi pipeline flows resume, but soaring freight and diesel prices signal persistent oil market tightness. Oil Freight Costs Explode as Gulf Risk Traps the VLCC Fleet - The ultimate showdown of the US-Iran conflict seems to be unfolding in the freight market as costs of VLCC tankers continue to push higher into uncharted territory, with stranded Gulf vessels triggering a worldwide shortage of long-haul ships. - For shippers eager to risk a voyage into the Persian Gulf, reward was never sweeter daily earnings on a Gulf-to-China route soared to $1.2 million this week, with Saudi Arabia's rising supplies straining tanker availability even further. - French oil giant TotalEnergies fixed the Kuwait Prosperity tanker last week at an astonishing rate of $75 million, equivalent to $38 per barrel, with this week seeing similar offers jump closer to $100 million.