XLE & Oil

Shipping Crisis Forces Asian Crude Buyers to Use Smaller Tankers

OilPrice.com·Oct 20, 2026 · 9:30 AM CT
Readthrough summary

Crude shipping costs have hit record highs in recent weeks as the Iran war reshuffled trade routes and tied up supertankers on long voyages and shuttles through Hormuz.

Increased flows out of the strait rely heavily on ship-to-ship transfers in the Gulf of Oman, which keep very large crude carriers waiting for weeks.

As a result, Asian buyers are increasingly using smaller tankers and ships on long-term charter to move crude, refining and trading sources told Reuters.

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