Asian Refiners Change Crude Buying as Tanker Costs Surge

Singapore, 20 October 2026 – Asian refiners are using smaller tankers, long-term charters and delivered crude purchases to reduce exposure to record shipping costs. By early October, the freight rate for a very large crude carrier from the Middle East Gulf to Asia had reached about US$36 per barrel, more than five times its pre-war level, according to industry assessments.

For Asian businesses and investors, the change matters because crude and transport costs feed directly into refinery margins, fuel prices and working-capital needs. The elevated freight rates are confirmed, but the duration of the disruption is uncertain. Refiners with flexible logistics, diversified supply and stronger trading operations may protect margins better than plants tied to a narrow group of routes or grades.