Oil tanker availability along the U.S. Gulf Coast has dropped sharply in recent weeks, as Asian and European refiners cut off from Middle Eastern supply have been snapping up vessels to import
Oil tanker availability along the U.S. Gulf Coast has dropped sharply in recent weeks, as Asian and European refiners cut off from Middle Eastern supply have been snapping up vessels to import oil and fuel from the United States, shipping analysts and traders said.
The Iran war has stalled tanker movements through the Strait of Hormuz, curbing the flow of Middle Eastern oil to Asia and Europe, and prompting refiners there to buy replacement barrels from the United States, Brazil and West Africa.
Wider discounts on U.S. crude oil compared to global benchmark Brent crude have spurred demand for tankers in the U.S. Gulf Coast, reducing vessel availability in the region, said Aristidis Alafouzos, chief executive officer of Okeanis ECO Tankers.
U.S. West Texas Intermediate crude futures for June delivery were trading at an over $10 discount to June Brent futures on Wednesday WTCLc1-LCOc1.
"The resulting surge in freight rates is unprecedented, with Suezmaxes and Aframaxes earning upwards of $300,000, compared to an average $60,000 over the past five months," Alafouzos said.
POTENTIAL COST TO CONSUMERS
Skyrocketing freight rates increase the cost of moving oil and fuel around the world, which analysts fear could hit economic activity as
Content Original Link:
" target="_blank">
