Korean Refiners Turn To U.S. Crude As Freight Rates Surge
Due to geopolitical instability and a vessel supply shortage, the domestic refining industry has begun securing U.S. crude oil.As maritime crude freight rates surge, companies are reducing the burden of crude transport costs by utilizing small oil tankers and long-term charter contracts.According to
Korean refiners are increasingly turning to U.S. crude oil as freight rates for maritime transport surge due to geopolitical instability and vessel supply shortages. The charter rate for Very Large Crude Carriers (VLCC) transporting crude oil from the U.S. Gulf of Mexico to Asia has reached $80 million, nearly 5 times higher than pre-war levels.
In response, companies are opting for smaller oil tankers and long-term charter contracts to reduce transport costs. SK Energy has chartered the 80,000-120,000-ton Aframax-class tanker 'Samos' for $23 million to transport 750,000 barrels of U.S. crude oil, while Taiwan's CPC has secured six cargoes of Aframax-class tankers. GS Caltex has also secured about 2,000,000 barrels of crude oil through Chevron, aiming to maintain a stable procurement base.
Additionally, refiners are utilizing 'Delivered basis' transactions, where the seller is responsible for transport to the destination, to further reduce transport costs.
Brief written by urgent.news from BusinessKorea's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
