The volume of crude oil currently on tankers has reached a record 1.28 billion barrels, which is approximately equivalent to 12 to 13 days of global oil consumption. This figure has increased by 180 million barrels (about 16%) in the past few weeks. Despite this high volume of oil, it has not yet reached the refineries.
Impact of transportation costs on gasoline prices
Currently, the average gasoline price in the United States has reached $4.15 per gallon (about 3.8 liters). Although crude oil prices have generally decreased, transportation costs make up a significant portion of the price per barrel. Delays in oil delivery limit the reduction in gasoline prices.
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Before recent disruptions, the Strait of Hormuz transported about 20% of global oil supply, but according to the U.S. Energy Information Administration, this route has been closed for months. Currently, oil exports from the Middle East are returning from the strait and alternative routes, but the transportation network is operating significantly slower and more expensively than before. As a result, importers who have distanced themselves from Middle Eastern suppliers are now purchasing oil from farther sources, leading to longer shipping times.
Increase in tanker rental rates and its effects
Daily rental rates for very large crude carriers on the route from the Middle East to China reached $1.27 million in September. Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (ADNOC), announced on November 2 (November 11, 1405) that the share of transportation and logistics costs from the price per barrel has increased from less than 5% to over 30%. In other words, if each barrel of oil is priced at nearly $100, over $30 of that goes to transportation costs. He also noted that nearly 1 billion barrels of global reserves have been drawn down.
Brent, the global oil price benchmark, traded at $107.03 on November 3 (November 12, 1405). This figure has decreased from a peak of $138.21 on April 7 (April 18, 1405), but remains above $61.98 on January 2 (December 12, 1404). The average gasoline price in the U.S. has also dropped from $4.33 on October 12 (October 20, 1405) to $4.15 on November 2 (November 11, 1405).
Higher transportation costs are passed on to the prices of gasoline, diesel, and jet fuel. Diesel also significantly impacts the transportation of goods, leading to price increases in other sectors. According to statistics, the U.S. consumer price index rose by 7.7% in September 3 (September 12, 1405) compared to the previous year.
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