China's crude imports fell 21.5% in September as refineries utilized record stockpiles to offset shipping costs. Sinopec expects total Chinese oil demand to fall 8.9% this year, moving the financial benefit of the trade toward tanker owners while placing increasing pressure on producers in the Gulf.
Tuesday, October 20, 2026
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Shipping Costs Take 90% of Asia's Oil Margins at $36 a Barrel
Commodities2 days ago
Refiners in Asia now keep roughly $5 per barrel of gross margin, a decline from the $40 profit seen in March. Shipping rates from the Gulf to China rose from $2 in January to $36 per barrel, a cost that now consumes nearly 90% of the total refining margin. Middle Eastern exporters may have to absorb these freight expenses themselves to prevent a further drop in demand, Reuters reports.
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