🚨 Oil shipping costs are exploding:
The cost of shipping oil from the US to Asia has surged to ~25% of WTI futures, the largest on record and more than quadrupling since 2025.
Moving a cargo from Houston to Asia now adds ~$26 per barrel, or roughly $52 million per shipment, dramatically changing the economics of long-haul crude flows.
The surge is being driven by a severe shortage of available supertankers, with the US-Iran conflict stretching vessel availability as ships take longer routes and spend more time moving cargoes.
VLCCs on the Persian Gulf-China route are now earning a record $1.2 million per day, while Suezmax earnings have climbed above $300,000 per day.
Freight costs on US-Asia routes have roughly tripled in recent weeks, pushing refiners toward shorter-haul supplies and making some long-distance crude trades uneconomical.
The impact is also visible in physical markets, with Dated Brent rising above $131 per barrel even as Brent futures peaked near $110, as European buyers compete for nearby barrels.
Oil is becoming increasingly expensive to move.