XLE & Oil
Citi sees continued oil price risk as tanker costs climb
Readthrough summary
A new Citigroup assessment warns that global oil prices could still rise further, Oil & Gas 360 reports.
Gulf crude exports, excluding Iran, recovered to more than 81% of prewar levels in September, with Saudi Arabia leading despite continued threats to infrastructure and shipping. But shipping efficiency hasn't improved at the same pace.
Freight for very large crude carriers from the Persian Gulf to China recently approached $250 per metric ton, roughly $35 a barrel, which Citi says is more than 20 times the average over the previous decade. That leaves refiners and buyers exposed to unusually high transport costs.
Summary written by Readthrough from the original article. The full story, with photos and any updates, is at Oil & Gas 360.
