Key facts
- Shipping costs for crude oil have risen to approximately $40.50 per barrel.
- Tanker rates reached record levels in September.
- Geopolitical risks and vessel scarcity are driving up shipping costs.
- Higher freight rates affect crude oil and refined product prices.
- Daily returns for very large crude carriers have exceeded $1 million.
The cost of transporting crude oil to refineries has become a significant factor in oil prices, with shipping costs now adding approximately $40.50 per barrel. This surge in freight rates, driven by geopolitical risks, longer voyages to avoid conflict zones, and a scarcity of vessels, is reshaping global oil flows. The cost of moving 2 million barrels of crude from the U.S. to Japan can now reach $81 million, a stark increase from a year ago. These elevated transportation expenses are contributing to higher fuel costs and broader inflationary pressures.