Record Shipping Costs Force Oil Producers to Slash Prices
Freight is reshaping global oil trade and the prices producers can command for their crude. Soaring shipping costs are pushing delivered prices beyond what refiners are willing to pay, forcing sellers to cut differentials or find buyers closer to home. With Chinese refiners inclined to wait for transport costs to ease, some producers are committing barrels for future loading at prices that leave…
The record shipping costs are forcing oil producers to slash prices as delivered prices exceed what refiners are willing to pay. This pressure is most pronounced in the Middle East, where crude freight has surged due to the ongoing war. With Chinese refiners waiting for transport costs to ease, some producers are committing barrels for future loading at prices that leave little room for today's freight bill.
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