According to a report by the UK's Financial Times on September 27, tight crude oil shipping conditions in the Middle East have driven up prices in the very large crude carrier (VLCC) market sharply.

Some second-hand VLCCs around ten years old have sold for more than $150 million, above the current average cost of about $135 million for a newly built vessel, creating a situation where ship prices are inverted.

Buyers are willing to pay a hefty premium simply to lock in spot tonnage that can be put into service immediately.

The core reason behind this price inversion is the difference in delivery timelines between new and old ships. Ordering a new vessel means waiting for construction and delivery, while buying an existing second-hand ship allows it to be deployed on routes right away, take on cargo orders and earn high freight rates.

The report said day rates for a VLCC capable of carrying about 2 million barrels of crude oil on the Middle East-to-East Asia route have climbed to about $1.2 million.

Shipbrokers said some deals that previously took weeks to complete now take only days, and the restraining effect of vessel age on pricing has clearly weakened.

Middle Eastern national oil companies are important buyers in this wave of ship purchases. Rising navigation risks in the Strait of Hormuz have prompted these companies to expand their own fleets and reduce reliance on third-party shipowners to safeguard their crude oil exports.

Shipping consultancy Drewry said Abu Dhabi National Oil Company of the United Arab Emirates has bought at least six VLCCs in the past two months.

However, some industry analysts cautioned that current high tanker prices are mainly supported by shipping disruptions and surging freight rates. Many shipowners expect that once Middle East tensions ease and navigation through the Strait of Hormuz returns to normal, both high freight rates and second-hand tanker prices could fall significantly.