Tanker Shortage Shifts Iran War Energy Crisis Toward Shipping Bottleneck

The Iran war-related energy crisis has shifted from crude shortages to a shipping bottleneck, raising delivery costs and adding volatility to oil markets.

Tanker rates have risen as fewer vessels are available, making crude and fuel shipments more expensive and difficult. European refiners are facing negative margins because of higher crude and shipping costs, which may force them to cut production.

The shipping squeeze has also increased the value of crude that can be delivered more easily. North Sea oil has reached $145 a barrel as refiners compete for cargoes less affected by tanker delays and high freight costs.

The transportation constraints are adding to the cost and complexity of supplying refined fuels. They could worsen supply problems for products such as diesel as refiners contend with higher input and freight costs.