US Crude Oil Shipping Costs to Asia Hit Record $44.8M Amid Supply Disruptions

The cost of shipping US crude oil to Asia has reached a record high of $44.8 million, up from $17.8 million before the Iran war, due to supply disruptions and tanker risks. The surge in costs has not deterred buyers in Asia, who are willing to absorb the higher costs as long as US crude remains cheaper than competing cargoes. The closure of the Saudi East-West pipeline has made US supplies more critical, and record shipping costs are not expected to change the momentum. Global tanker freight rates are also rising, with fewer ships willing to transit routes that carry the risk of attack. Despite the high costs, refiners are continuing to purchase and ship US crude, with six VLCCs set to load crude from the US Gulf Coast for Asia in October.