The economic viability of importing oil from the U.S. Gulf Coast to Asia has diminished due to a significant increase in supertanker chartering costs on the route. The cost of chartering a Very Large Crude Carrier (VLCC) for U.S. to Asia shipments has surged from $8 million to $10 million in a week, prompting Asian refiners to reassess their options. With the arbitrage for U.S. shipments closing, Asian refiners are likely to turn to Middle Eastern crude, especially after Saudi Arabia reduced sales prices for February. The rise in demand for Middle Eastern crude could support oil prices in the region. The tight tanker market, driven by increased bookings and a surge in freight rates, has impacted the competitiveness of U.S. crude in the Asian market, leading to a shift in trading dynamics.

SOURCE:HELLENIC SHIPPING NEWS