Record Shipping Costs Force Oil Producers to Slash Prices

Freight is reshaping global oil trade and the prices producers can command for their crude. Soaring shipping costs are pushing delivered prices beyond what refiners are willing to pay, forcing sellers to cut differentials or find buyers closer to home. With Chinese refiners inclined to wait for transport costs to ease, some producers are committing barrels for future loading at prices that leave little room for today’s freight bill. Their returns increasingly depend on shipping becoming cheaper before those cargoes sail. The pressure is most…