Petrobras' Deepwater Push Sets Off a Race for Offshore Vessels

Recently, we reported that the Middle East conflict and subsequent closure of the Strait of Hormuz has triggered an unprecedented spike in freight and shipping rates, with Very Large Crude Carrier (VLCC) spot rates now exceeding $1 million per day. The sharp spike is now reshaping oil flows and forcing producers to cut prices in a bid to help buyers offset extra transport costs. The situation is a little different in Brazil, where the offshore sector is facing a potential vessel shortage as demand outruns supply amid the offshore oil boom, positioning…