Soaring Freight Costs Make Japan’s Crude Imports the World’s Most Expensive

Oil is increasingly getting more expensive before it even reaches a refinery. Freight now accounts for roughly a fifth of the cost of a crude cargo, turning the tanker market into a major driver of the price buyers pay. At the center of the squeeze is the very large crude carrier, or VLCC, the supertanker that can move about 2 million barrels in a single voyage. Amidst stranded Gulf and Red Sea supplies, these vessels are spending more time at sea as refiners search farther afield for supplies. For instance, Indian buyers are now reaching into…