Ultra-large oil tanker daily rental rates soar to $125,000, hitting a new high since the pandemic.

With the increase in global oil supply and sanctions driving up demand for "unaffected" oil tankers, earnings for benchmark tankers have climbed to their highest levels since the peak of the COVID-19 pandemic. Data from the Baltic Exchange shows that tankers capable of transporting 2 million barrels of crude oil from the Middle East to China have seen a 40% increase in daily rental rates, reaching $125,000. This figure marks a new high since April 2020, when the pandemic forced traders to stockpile oil at sea. Reports indicate that recent U.S. sanctions on two major Russian oil companies have also contributed to the recent rental rate increases, prompting some refineries to seek alternative sources of supply. Frontline (FRO.US) CEO Lars Barstad stated, "Crude oil transports affected by sanctions are being delayed on ships for longer periods. In addition, the volume of shipments from the Atlantic Basin to Asia is increasing, leading to higher ton-mileage; finally, more OPEC crude oil is entering the market." Related stocks include: Frontline, Teekay (TK.US), Teekay Tankers (TNK.US), CMB.Tech (CMBT.US), Scorpio Tankers (STNG.US), DHT Holdings, Inc. (DHT Holdings, DHT.US), Tsakos Energy Navigation (TEN.US), Navios Maritime Holdings (NMM.US), International Seaways (INSW.US), Nordic American Tankers (NAT.US), SFL Corp. (SFL.US).