Sandy Gas Shortages Drive Tanker Rates Higher

Sandy Gas Shortages Drive Tanker Rates Higher

Spot rates for tankers in the oil trade between the Caribbean, the Gulf and the northeastern U.S. have gained considerably in recent days, following the gasoline shortages caused by Hurricane Sandy.

Spot rates for oil tankers have increased to the neighborhood of $30,000 per day from $8,500 per day before the storm last week, according to Dahlman Rose, the New York-based investment bank.

The storm-driven surge follows on stronger activity in the European, Mediterranean and Far Eastern markets. In addition, strong export volumes from the U.S. Gulf coupled with dislocations from Hurricane Sandy have pushed rates on the backhaul route from Europe back to the Gulf to highs above $20,000 per day.