Crude Oil Shipping Costs Surge 258% in Two Months
The cost to ship 2 million barrels of crude oil from West Africa to China has jumped to $23.59 per barrel from about $6.50 in July.
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While much attention remains on crude oil futures, the physical crude market is showing severe stress. Freight costs for crude oil shipments are rising at a nearly unprecedented pace.
The cost to move 2 million barrels of crude oil from West Africa to China is now $23.59 per barrel. That compares with roughly $6.50 per barrel in July, a 258% increase in about two months.
The surge in transport costs points to one of the largest global energy shocks on record.
Source: The Kobeissi Letter