Fuel / NEWS UPDATE
Record Tanker Rates Cripple U.S. Crude Oil Flows to Asia
Published · 1 min read
Record-high tanker rates due to the Iran war have significantly increased the cost of shipping U.S. crude oil to Asia, nearly erasing the incentive for such shipments.
Freight costs soared to $80 million earlier this month, ten times the average rates before the conflict. As a result, Asian refiners have reduced orders for U.S. crude by about 50%, leading to the lowest volumes of U.S. crude oil received in Asia in seven years. The high shipping costs are causing global crude pricing dislocations, with Asian buyers turning to Middle Eastern crude and European refiners opting for nearby supplies.