Asian oil buyers grapple with rising costs as global freight rates jump


Asian oil buyers grapple with rising costs as global freight rates jump

Asian oil refiners are grappling with a jump in global freight rates that shows no sign of abating, driving up costs of crude imports from all regions in the fourth quarter, industry officials said.

The cost of shipping crude from the Americas, Europe, Africa and the Middle East to Asia has surged over the past two weeks as companies shunned nearly 300 tankers on fears of violating sanctions against OPEC members Iran and Venezuela.

Higher freight rates and a jump in crude premiums after the Saudi oil attacks in mid-September have so far added about $3 a barrel to November-lifting oil cargoes from the Middle East to China, trade and shipping sources said.

Oil tanker freight rates are expected to keep rising while COSCO Dalian’s ships remain under sanctions, the sources said. Read More

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