Record supertanker rates shut US crude arbitrage to Asia; refiners pivot to Mideast, South America

Soaring freight costs—up to $82 million per cargo—have made US Gulf Coast crude uneconomic for Asian refiners, effectively closing the arbitrage. This marks a reversal from the Iran war period when US barrels were a key supply source for Asia. Refiners are shifting to Middle Eastern and South American grades, potentially tightening US export demand and altering global crude flows.