- Average global freight rate to transport oil surged to $20 per barrel from $3 per barrel last year, according to Goldman Sachs.
- Freight rates on Middle East routes surged to $35 a barrel.
- The freight increase includes a $7 a barrel war-risk premium in the Strait of Hormuz, $4 a barrel from higher fuel costs, and $4 per barrel for ship-to-ship transfers in the Gulf of Oman.
- Supertanker rates topped $1.4 million per day on the Gulf to East Asia route in early October, a record high.
- Goldman's $90 per barrel Brent year-end forecast carries upside risk from elevated freight rates.
Quotes
“Higher freight rates for longer pose some upside risk to our Brent forecast, along with the risks of more intense shipping attacks, damage to oil infrastructure, and a stickier geopolitical risk premium”