Record Supertanker Rates Price U.S. Oil Out of Asian Markets

Source Summary

Supertanker freight costs have reached $82 million per cargo from the U.S. Gulf Coast, making U.S. crude economically unviable for Asian refiners. As a result, refiners in Asia's top crude-importing region are shifting to increased purchases from the Middle East and South America instead.

Why it matters

Record shipping costs have eliminated the price advantage that made U.S. crude competitive in Asian markets, redirecting global crude flows and affecting U.S. export demand.