Surge In Tanker Rates May Further Curb US Oil Exports To Asia

Oct 11 14:10 2018 Print This Article

Rising shipping rates have increased the costs of shipping oil from the United States to Asia and may further the restrict the flow of U.S. oil to the region later this year, multiple trade and shipping sources said on Oct. 11.

Freight rates for tankers that carry crude oil have soared globally, buoyed by peak seasonal demand, weather disruptions and higher bunker fuel costs, the sources said.

The cost of chartering a Very Large Crude Carrier (VLCC) capable of carrying 2 million barrels of crude from the U.S. Gulf coast to South Korea and Japan rose to above $7 million this week, $1 million to $2 million higher than the previous week, according to a shipbroker.

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