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A supertanker was recently chartered to sail from the U.S. Gulf Coast to China for $76 million, officials told CNBC, as shipping costs soar globally due to the Middle East crisis.
The Alexander was chartered by trading company Trafigura and is expected to be loaded around November 19, the people said. The typical price for this route, based on pre-war levels, would be $7 million to $10 million.
Assuming the tanker is carrying 2 million barrels, the cost of the trip is $38 per barrel. The war in the Persian Gulf has led to a shortage of available tankers and increased shipping costs.
Brent crude oil year-to-date
Middle Eastern producers use the shuttle system to export oil through the Strait of Hormuz. A loaded tanker crosses the strait and loads oil onto another ship in the Gulf of Oman, which takes the cargo to Asia.
This system reduced the country’s exposure to Iranian attack and helped restore oil exports through Hormuz. But more ships will be needed to extract oil from the Gulf.
