Goldman Sachs warns: Geopolitical risks drive up tanker freight rates, up 50% this year

⑴ Analysts at Goldman Sachs Group stated that the escalating situation in the Middle East is bringing significant upside risks to the tanker freight market, with insurance premiums also rising sharply. They pointed out that even if there are no further major disruptions in the strait, precautionary restocking and route redirection could push already high freight rates even higher. ⑵ According to this American bank, global crude oil freight rates have risen by 50% so far this year due to increasing volumes of oil transported by sea and Venezuela’s growing use of legitimate tankers instead of the “shadow fleet.” Freight rates are typically determined by the relationship between demand for tanker capacity and the number of available vessels.