US, Sep 16 : The cost of transporting US crude oil to Asia has climbed to a record high as buyers seek alternative supplies amid disruptions to traditional Middle Eastern energy routes, Bloomberg News reported.
Hiring a very large crude carrier (VLCC) capable of carrying about 2 million barrels from the US Gulf Coast to China cost approximately $44.8 million on Tuesday, according to Baltic Exchange data cited by Bloomberg. The figure was up sharply from around $39 million a day earlier and more than twice the estimated $17.8 million recorded before the Iran war began in late February.
The steep increase in tanker charges reflects growing uncertainty across global oil shipping routes as the conflict continues to affect established supply channels. Asian refiners are consequently placing greater emphasis on alternative sources, including crude produced in the United States.
Saudi Arabia’s decision this week to close its East-West pipeline has added to the pressure. The pipeline had provided a key alternative route for moving Saudi crude without relying entirely on maritime shipments through waters affected by the turmoil surrounding the Strait of Hormuz.
Despite the sharp rise in transportation expenses, US crude remains commercially attractive for some Asian buyers. West Texas Intermediate (WTI), the US benchmark, can still reach Asian markets at a competitive price compared with grades such as Murban from the United Arab Emirates.
The price difference allows refiners to absorb part of the increased freight expense while maintaining the economic viability of shipments from the US Gulf Coast.
Tanker markets have also come under broader pressure as shipping companies reassess routes amid heightened security risks. With some vessels avoiding areas considered more vulnerable to attacks, the number of tankers available for certain long-distance voyages has tightened, contributing to higher freight rates.
Demand from refiners is adding another layer of pressure. Strong margins for products such as diesel and gasoline are encouraging refiners to continue securing crude supplies, even as transportation costs rise.
The shift in trade patterns is becoming increasingly visible in shipping schedules. Research firm Kpler estimates that six VLCCs are scheduled to load crude from the US Gulf Coast for Asian destinations in October.
The increase in American crude shipments underscores how the Middle East conflict is altering global oil trade. As conventional supply routes face disruption, Asian buyers are increasingly looking toward US barrels to help maintain crude supplies and support refinery operations.