New Threat To Global Oil TradeThen came the Hamas-Israel war that began in early October, shifting the market focus to the most vital oil shipping lanes in the world, in the Middle East. The Suez Canal, the SUMED pipeline, and the Strait are strategic routes for Gulf oil and natural gas shipments to Europe and North America and for U.S. oil to Asia. U.S. Oil Becomes Too Expensive for Asian BuyersThese higher costs have already upended global crude trade patterns. U.S. crude such as WTI Midland, is now more expensive for Asian refiners compared to the crude grades from the Middle Eastern producers as tanker rates have surged in recent weeks. U.S. crude can’t compete now in Asia because freight rates have made it too expensive.

Source: The North Africa Journal January 12, 2024 01:05 UTC