The Economic Times

Global oil supply chains face historic stress: Crude prices and tanker rates now at all-time highs heres the key reason behind the oil price surge

Global oil supply chains face historic stress: Shipping 2 million barrels of crude oil now costs $29 million from the U.S. Gulf Coast to Asia. That is a record. Freight rates doubled in two weeks. Shipping alone now costs $14.50 per barrel, nearly 20% of the WTI crude oil price near $79. The trigger is the Strait of Hormuz crisis amid the U.S.IsraelIran conflict. Nearly 2030% of global oil supply moves through this chokepoint. Tanker disruptions, OPEC+ cuts, and soaring freight rates are tightening global oil supply chains and pushing oil prices higher worldwide.