The unprecedented increase in transportation costs of crude oil from the Gulf Coast of America to Asia has forced refiners to change their purchasing routes. Transportation costs have reached a record 82 million dollars, effectively limiting the ability of Asian refiners to purchase American crude oil.
Oil Transportation Market Status
The costs of transporting crude oil from the Gulf Coast of America to Asia have sharply increased due to a shortage of tanker ships and the need to change routes in the Strait of Hormuz. These costs, which have reached 82 million dollars in some cases, have caused the cost per barrel of oil to rise to about 38 dollars. In the past, these costs were between 7 to 10 million dollars per shipment.
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Changes in Oil Import Patterns
With the closure of the oil arbitrage route between America and Asia, Asian refiners have turned to purchasing crude oil from the United Arab Emirates, especially Murban type. This change in purchasing patterns has led to an increase in the price of this type of crude oil to over 11 dollars per barrel compared to Dubai prices.
It is expected that with the continuation of this trend, Asian refiners will seek to meet their needs from other markets. Currently, reports indicate that the major trading company Trafigura has rented an ultra-large tanker to transport crude oil from the Gulf Coast of America to China for 76 million dollars, which is ten times the previous costs.
Overall, the current conditions of the oil market indicate serious challenges for Asian refiners and significant changes in the crude oil supply patterns in this region. Given the new record transportation costs, it is expected that refiners will increasingly move towards alternative sources to meet their needs.
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