Record Tanker Rates Cripple U.S. Crude Oil Flows to Asia
Nosebleed tanker rates have led to lower premiums and even discounts for US and African oil shipments.
The Iran war has caused a surge in tanker rates that is crippling crude oil flows from the U.S. Gulf Coast to Asia, according to recent reports. Freight costs have reached unprecedented highs, with a single voyage costing as much as $80 million, ten times the typical rates seen before the conflict. Asian refiners are ordering significantly less U.S. crude for delivery in November, with purchases dropping by about 50% from September levels to around 25 million barrels.
This is the lowest volume of U.S. crude in Asia since seven years ago, according to vessel-tracking analysts. The crisis is affecting global oil markets, with U.S. crude prices dropping as refiners seek to find barrels closer to home and sellers discount barrels to account for the high shipping costs.
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