World running short of supertankers threatens long-haul oil flow
The squeeze is making faraway barrels less attractive and encouraging refiners to snap up supplies closer to home if they can find them.
The world is facing a shortage of supertankers, which is putting pressure on long-distance oil trade and potentially disrupting global fuel supplies. These massive ships, each as long as three football fields, are in extremely short supply, with few left available for hire in many regions. This scarcity is making faraway oil less appealing and prompting refiners to seek out local sources whenever possible, if available.
Transporting a cargo from Houston to Asia has become significantly more expensive due to the shortage, adding approximately $26 per barrel, or $52 million per cargo, to the cost of supplying the world's largest crude-importing region. This represents roughly a quarter of the price of West Texas Intermediate futures. The situation is a stark contrast to pre-war conditions, when shipping costs were a tiny fraction of the overall expense.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
