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Oil shipping costs: soaring freight rates add pressure beyond benchmark prices

An October 22 report cited Goldman Sachs estimates that the average cost of transporting crude oil globally rose from around US$3 per barrel a year earlier to more than US$20. Rates on key Middle Eastern routes exceeded US$35. The increase was attributed to the Strait of Hormuz crisis, war risks, ship-to-ship transfers, higher fuel costs, and reduced efficiency in tanker scheduling.

The Brent–WTI spread has recently been reported to be nearing US$14 per barrel, compared with a typical level of around US$5. Asian refineries are described as the most vulnerable; some European refineries are reducing imports and processing. Freight costs and benchmark price spreads are different measures, so they are not added together. Persistently high shipping, insurance, and refining costs could keep fuel prices elevated even as benchmark prices fall; this is a conditional assessment, not a certain outcome.

2026-10-22 06:34 UTC

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