Business · Energy & Commodities · 1 day ago

Oil tanker costs hit records as Iran war strains global shipping

Oil tanker costs hit records as Iran war strains global shipping

The Iran war has disrupted oil trade routes and sent the cost of shipping crude oil to record levels.

In September, supertanker rates for carrying oil from the Persian Gulf to China passed $1 million a day, then rose further in early October.

Many tankers are tied up for weeks in ship-to-ship transfers in the Gulf of Oman, where oil is moved between vessels outside the Strait of Hormuz.

That leaves fewer large tankers for other routes, including journeys from the US Gulf Coast to Asia.

Oil buyers are turning to smaller tankers, pushing up their rates too.

One reported US Gulf Coast to China charter cost $76 million, compared with $7 million to $10 million before the war.

Higher shipping costs add to the cost of crude cargoes and can put further pressure on oil and fuel prices.

What people are saying

There is really not quite enough shipping to go around.
Russell HardyVitol chief executive officervia OilPrice
We started this conflict with a crude crisis. Then it turned into a product crisis. Now we have more crude oil coming out of the Middle East, but it is turning into a shipping crisis.
Russell HardyVitol chief executive officervia OilPrice
Oil supply continues to increase, and shipping data shows regional crude exports from the Middle East actually exceeded pre-war levels on several days in late September.
FearnleysShipbrokervia OilPrice

Sources

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