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U.S.-to-China oil tanker costs more than launching a rocket
- Global oil tanker rates surged to record levels this week, with shipping crude from the U.S. to China costing about $80 million, exceeding a standard SpaceX Falcon 9 launch, according to shipbroker Gibson.
- A tanker shortage fueled by altered Hormuz trade flows and security disruptions has created the crisis, pushing transport costs to $41 a barrel, up from $4.50 last year.
- Average daily earnings for Suezmax vessels have jumped to more than $680,000, about five times their level at the start of the month, while the value of a new oil tanker has climbed to $240 million.
- European refiner Repsol reported margins contracted to about $15 in October from $36 in Q3, while producers are splitting cargoes onto smaller vessels to shield themselves from volatility.
- Vitol Group CEO Russell Hardy noted "pretty parabolic pricing," as industry executives warn high freight costs could eventually curb crude trade flows if costs rise from 5% to 50% of cargo value.
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14 Articles
14 Articles
The cost of shipping oil has increased dramatically to such an extent that renting an oil tanker from the United States to China now exceeds the cost of launching a rocket into space. The route "swallows up to $80 million, while a typical launch of SpaceX's Falcon 9 rocket costs $74 million, ...
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Global shortage of oil tankers and changes in routes after the war with Iran brought freight to record levels, pushing oil prices and refining margins
Coverage Details
Total News Sources14
Leaning Left2Leaning Right0Center3Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 40%
C 60%
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