Oil tanker rates have dropped from their peaks but remain elevated, according to a Bloomberg Markets report. Prediction-market participants appear to read the decline as a sign of weaker demand, and they now price lower odds of new highs for crude oil.
Shipping a 2-million-barrel cargo from the U.S. Gulf to Asia now costs about $45 million, down from $79.6 million a month earlier. The drop may make long-distance trades in crude oil more appealing, even though base rates stay high.
Freight costs ease from October highs
West Africa–China VLCC rates have fallen 35% from October's record highs, although they remain substantially higher than three months ago. Cheaper freight reduces the penalty on long-haul crude movements, but it still affects delivered oil costs and tanker earnings.
Prediction markets trim odds of price spikes
The probability that crude oil reaches a new all-time high by December 31 fell to 5.5% from 8% over the last 24 hours. Meanwhile, the likelihood of WTI Crude Oil hitting $160 in November currently stands at 1% YES.
These odds suggest market participants are weighing how falling tanker rates could affect future oil prices. The report adds that continued declines could further influence sentiment on crude demand, while OPEC production decisions and Middle East developments could also shift expectations.
Source: Crypto Briefing
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