Shipping and insuring Middle Eastern crude to East Asia cost $49.42 per barrel in October, Gulf News reported, citing OPEC estimates.
The October total was $46.18 above January’s $3.24 per barrel. Very large crude carrier (VLCC) freight made up $37.13 per barrel in October, while marine insurance accounted for $12.29. In January, the respective amounts were $3.18 and $0.06.
Together, the charges represented about 30% of total crude costs on the route in October, up from about 5% in January. They are delivery expenses separate from the value of the crude.
OPEC’s assessment, as relayed by Gulf News, assigned little of the increase in freight and insurance costs to tanker-fleet disruption alone. Gulf News also identified maritime security concerns, route uncertainty and vessel insurance costs as factors that can affect shipping bills.
