The price surge was driven by a global tanker shortage and ship-to-ship transfers near the Strait of Hormuz. During the peak, the cost of a US-to-China voyage exceeded the $74 million price of a SpaceX Falcon 9 launch, and the Persian Gulf to Far East benchmark reached $1.4 million a day. Other routes also experienced spikes, with West Africa to China freight rising to $27.22 per barrel from $6.50 in July and the US-Europe suezmax index jumping 150% in one week.
Tuesday, October 20, 2026
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US-China Supertanker Freight Drops From Record That Shut Out US Oil
Commodities9 days ago
Costs for chartering very large crude carriers on the route between the US Gulf and Asia have started to decline from levels that made American crude uncompetitive for regional refiners. Freight for these voyages peaked between $76 million and $82 million, or about $40 per barrel, which shuttered the market arbitrage and drove Asian buyers to source oil from the UAE and Argentina instead.
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