Asian Refiners Ditch U.S. Oil as Supertanker Rates Hit $82 Million
Oil as Supertanker Rates Hit $82 Million What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… The record-high freight costs refiners have to pay to receive a cargo of crude oil from the U.S.
Gulf Coast have effectively shut the arbitrage to Asia, with refiners in the top crude oil-importing region turning to more barrels from the Middle East and South America, shipbrokers and traders have toldReuters.
crude, which had come to the rescue of the Asian refiners during most of the Iran war, is now out of reach in Asia because the economics of paying $80 million to have a cargo of crude oil shipped from the U.S.
This week, market chatter signaled that the U.S .-Asia freight rates have smashed the records, set just days ago, as the tanker market continues to reel from a shortage of vessels because many ships are tied in highly inefficient trades to work around the constraints at the Strait of Hormuz.
Commodity trading giant Trafigura has reportedly chartered a supertanker to ship crude oil from the U.S.
Gulf Coast to China at a lump-sum fee of $76 million, a source with knowledge of the fixture toldCNBCthis week.
The $76-million tanker fee is ten times higher than the $7 million to $10 million before the war.
This suggests the freight cost of the journey has now jumped to about $38 per barrel of oil.
Gulf-to-Japan route are also skyrocketing, and one supertanker has been reportedly offered at a total fee of $82 million for the journey, up by 50% from just three weeks ago, Bloombergreportedthis week.
With the US-Asia arbitrage closed for the time being, Asian refiners consider buying more of the United Arab Emirates’Murban grade.
Increased interest hiked the premium of Murban crude over the Dubai quotes to more than $11 per barrel on Thursday.
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| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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