EL7.AI
CommoditiesMediumUpdated•Originally published 13 September 2026•Updated 13 September 2026•
2 min read

Oman-China VLCC Freight Hits Record at $11.50 a Barrel

Key Facts

1The Gulf of Oman-to-China VLCC assessment reached about 450 on a Worldscale basis, equivalent to roughly $11.50 a barrel and the highest since TD34 launched on May 5, 2026.
2Middle East-to-Asia VLCC rates in March 2026 were the highest since the data began in November 2005.

The cost of moving oil on VLCC tankers rose to record levels during the week through September 11, 2026, after the biggest wave of shipping attacks since the United States-Iran war began in late February. The increase shows how maritime-security risk is feeding into the cost of energy trade.

The assessed rate for a VLCC voyage from the Gulf of Oman to China reached about 450 on a Worldscale basis, equivalent to roughly $11.50 a barrel, according to Baltic Exchange data reported by Reuters. Official publication of the TD34 index for the route began on May 5, 2026, making this the highest reading since the series launched.

The surge reflects a reduction in effective vessel supply more than an increase in underlying crude-cargo demand. Transit risks reduce the pool of tankers willing to operate in the region, while war-risk insurance adds to voyage costs, raising the price of chartering the remaining capacity.

Worldscale quotes freight as a percentage of a route-specific reference rate: WS450 represents 450% of that reference rate, not $450 a barrel. Converting the assessment to about $11.50 a barrel shows freight’s contribution to crude’s landed cost and the potential pressure on businesses and consumers if elevated rates persist.

The increase extended beyond the Gulf, with VLCC rates on the West Africa-to-Asia route also reaching record levels. The United States Energy Information Administration previously said Middle East-to-Asia crude tanker rates in March 2026 were the highest since its data began in November 2005, driven by attack risks, insurance costs and reduced vessel availability.

Vessel availability remains the most important near-term variable for rates. S&P Global Energy said the increase was driven primarily by restricted vessel supply rather than growth in cargo demand, leaving rates sensitive to transit security and the return of tankers to normal Gulf operations.