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1) What is the value of an average super tanker full of WTI crude assuming you’re...

1) What is the value of an average super tanker full of WTI crude assuming you’re using spot price of crude in US dollars? What is that value using Euros?

Solutions

Expert Solution

Crude Oil is carried by Ultra Large Crude Carriers (ULCC) and Very Large Crude Carriers (VLCC).

(Note that WTI crude oil spot price is taken as 52.43 as on 11th February, 2019, the calculations are based on a VLCC and its capacity as they are more common n transportation of crude)

Cost in USD

The value of these carriers itself skyrockets to 100 to 120 million USD.

An average supertanker can easily hold 2 million barrels or WTI crude oil. ateking the price of WTI crude oil per barrel, it falls to 52.43 USD/bbl (USD per Barrel) That mean the cost would be = 2000000 Barrels x 52.43 USD/bbl.

That gives us a cost of 104,860,000 or 104.86 million USD.

Together they can be valued at 104.86 million USD + 110 million USD = 214.86 million USD

Cost in Euros

Cost of super tanker VLCC = 96 million Euros

Spot price of barrel of WTI Crude oil in euros = 46.13 Euros

Cost of 2 million barrels of WTI Crude Oil = 92.26 million EUR

Therefore the entire value is 188.26 million EUR, if WTI Crude Oil is taken.

Or

Spot price of Brent Oil = 58.53 EUR/bbl (20th February, 2019)

Cost of 2 million barrels or Brent Oil = 117.06 million EUR

Total Value of supertanker carrying Brent Oil = 213 million EUR.

I hope to have answered you Question.

jeff jeffy answered 1 year ago
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