Oil tanker rental prices jumped amid rising demand

Oil refineries seek to secure tankers for storing surplus fuel, diesel, and gasoline, as the reduction in demand caused by the outbreak of coronavirus has led to an oversupply of oil and petroleum products in the world, writes The Financial Times.
So far, the main focus on the maritime shipping market has been focused on raising rates for very large crude oil carriers (VLCCs) capable of transporting more than 2 million barrels.
Now the emphasis has shifted to tankers for transporting long-range products that are used to transport finished petroleum products and have become more expensive for chartering than VLCC.
The cost of hiring a Long Range 2 tanker that can carry around 800 thousand barrels of oil products more than doubled over the past week and reached a record $ 173 thousand a day on April 27, according to Clarksons Platou Securities. Daily rates for LR1 tankers, which can carry from 345 thousand to 615 thousand barrels of gasoline, also doubled, reaching almost $ 112 thousand.
VLCC rates, in contrast, fell slightly to about $ 167 thousand a day, shortly before the agreement on the reduction of oil production agreed upon by OPEC countries and Russia came into force in early May.