Record oil tanker rates put pressure on Asian refiners, IEA says
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- ✓Record oil tanker rates are squeezing profit margins for Asian refiners, the IEA said.
- ✓Shipping costs from the Middle East surged to $36 a barrel by early October.
- ✓Many refiners got hit hard as processing margins turned negative in September.
Story at a Glance
- Category
- MARKET
- Reported By
- Economic Times
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Asian oil refiners are facing increased shipping costs that are significantly affecting their profit margins. The cost of transporting oil via supertankers from the Middle East has surged sharply, leading to higher delivery prices. As a result, many refiners have seen their processing margins turn negative in recent months. Although refiners can buy US crude, shipping rates have also risen considerably for these imports.
London: The jump to record highs in the cost of shipping oil in supertankers is squeezing profit margins for Asian oil refiners, who are heavily dependent on Middle Eastern crude, the International Energy Agency said in a monthly report.
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