Shanghai Shipping Exchange: Crude oil freight rates decline from high levels

The domestic crude oil production in the United States increased by 13,000 barrels to 13.715 million barrels per day. Crude oil exports decreased by 1.164 million barrels per day to 4.44 million barrels per day, and imports stood at 5.212 million barrels per day, down 804,000 barrels per day from the previous week. The four-week average supply of oil products was 20.192 million barrels per day, up 1.48% compared to the same period last year. The United States and Iran have begun preliminary discussions regarding a 60-day ceasefire extension arrangement, with Iran potentially clearing naval mines from relevant waters in the Strait of Hormuz within 30 days to restore normal shipping order in the area. However, significant uncertainty remains regarding the relevant agreement. President Trump has not formally approved the terms of the agreement, and whether the two sides can eventually reach a comprehensive agreement, as well as the timing of its implementation, is still up in the air. As market concerns over the risk of Middle East conflict escalation have eased, the substantial risk premium previously accumulated in the oil market has quickly retreated. This week, Brent crude oil futures prices have dropped sharply, with Thursday’s quote at $93.44 per barrel, down 10.81% compared to May 21. Global VLCC crude oil carrier freight rates have declined slightly. Freight rates in China’s VLCC import transportation market have dropped from high levels. On May 28, the Shanghai Shipping Exchange reported the China Import Crude Oil Composite Index at 3,972.70 points, down 3.7% compared to May 21.