Crude oil prices skyrocket as shipping trade route reaches $100k per day
In a breach that eclipsed the early 2020 surge, soaring shipping costs reached $100,000 a day this week on the industry’s benchmark trade route. European sanctions on Russia are forcing tankers to take the “scenic route” and making fewer vessels available for transfer as they take longer to reach their destination. Oil companies are paying prices higher than ever to transport their valuable cargo.
A cap will soon be imposed on Russian oil prices on December 5th - although that cap’s number has not been officially set. The longest mainstream route, The Gulf of Mexico to China, is pricing out at $6.60 per barrel. That’s three times the cost in February 2022.
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