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U.S. crude exports face declining Asian demand due to record tanker rates
Record-high tanker freight rates are significantly impacting the economics of the international oil trade, making American crude increasingly expensive for Asian refiners. Shipping costs for a very large crude carrier (VLCC) transporting 2 million barrels from the U.S. Gulf Coast to China have reached approximately $80 million for November shipments. This represents a jump to roughly $40 per barrel in transportation costs, compared to approximately $8.60 before the conflict involving Iran began in February.
As a result of these costs, Asian buyers are exploring alternative suppliers, including Murban crude from the United Arab Emirates and supplies from Latin America. In Japan, Cosmo Oil provisionally booked a supertanker for $81 million for a U.S. cargo loading in late November, while competing bids from South Korea’s SK Energy and Trafigura reportedly fell through.
Market analysts attribute the surge in rates—which have increased more than 300% since mid-August—to shipping disruptions and the use of longer, less efficient routes to bypass maritime choke points like the Strait of Hormuz. These disruptions, alongside broader geopolitical tensions, have also contributed to rising fuel prices, with U.S. gasoline averages climbing back above $4 per gallon.
Entities
Cosmo Oil · SK Energy · Strait of Hormuz · Trafigura · U.S. Gulf Coast
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Japanese refiner Cosmo Oil provisionally booked a supertanker for $81 million for a U.S. cargo loading between November 19 and November 21. dailycaller.com
- [● 2 SOURCES] Transportation costs for U.S. crude have risen to roughly $40 per barrel, up from approximately $8.60 prior to the February Iran conflict. dailycaller.com
- [○ 1 SOURCE] The average price of gasoline in the United States has risen above $4 per gallon. kesq.com
- [○ 1 SOURCE] Bids ranging from $76 million to $77 million by SK Energy and Trafigura for U.S. crude shipments fell through. dailycaller.com
- [● 2 SOURCES] Tanker rates on routes between the U.S. Gulf Coast and Asia have increased by more than 300% since mid-August. dailycaller.com
- [● 2 SOURCES] Chartering a supertanker to transport 2 million barrels of U.S. crude from the Gulf of Mexico to China for November shipments cost approximately $80 million. dailycaller.com