Global Oil Shipping Costs Rise by $17
Amid the ongoing Iran conflict and escalating tensions surrounding the Strait of Hormuz, global crude oil transportation freight rates have surged dramatically from $3 to $20 per barrel within a single year. Rising maritime route uncertainties, tanker attacks, and heightened war risks are severely driving up shipping costs. US investment firm Goldman Sachs warns that this crisis is unlikely to abate anytime soon, keeping oil freight rates elevated in the short term and placing immense upward pressure on global oil prices.
According to Goldman Sachs data, oil transport costs on Middle Eastern routes have reached up to $35 per barrel in certain cases. This extraordinary figure includes an additional $7 per barrel for war risks in the Strait of Hormuz, $4 per barrel driven by rising fuel prices, and an extra $4 per barrel for ship-to-ship oil transfers in the Gulf of Oman. Consequently, the firm projects Brent crude prices to average around $90 per barrel by year’s end, though further escalations could push prices well above this forecast.
Reflecting these compounding pressures, Brent crude traded at $109.34 per barrel on Wednesday, while US West Texas Intermediate reached $98.47 per barrel. Daily charter rates for crude oil supertankers have similarly soared to record highs. Last September, the daily charter rate for transporting crude from the Persian Gulf to China stood at $1 million. Still, by early October, rates for shipping to East Asia surpassed $1.4 million per day.
Outside the Strait of Hormuz, large tankers face weeks of waiting in the Gulf of Oman for ship-to-ship transfers, tying up fleets and reducing global availability. Energy intelligence firm Kpler reports that at least 18 tankers have been targeted over two weeks, causing daily Persian Gulf shipments to plummet from over 20 million to 8.5 million barrels. Analysts warn that if this disruption persists, import-dependent nations will face escalating energy, power, and manufacturing costs.
Source: Oilprice.com
