The cost of shipping crude oil from the US to Asia is skyrocketing: It now costs over $29 million to hire a supertanker to take 2 million barrels of crude from the US Gulf Coast to China, the highest on record. Shipping rates have DOUBLED in just two weeks. This means shipping alone costs ~$14.50 per barrel, or a record ~20% of the oil price at current WTI levels of ~$75. The cost of a supertanker as a percentage of the WTI crude oil price has quadrupled since August, when it was ~5%. This comes as the ongoing war in the Middle East has effectively shut down traffic through the Strait of Hormuz, forcing Asian buyers to turn to US barrels. Many supertanker bookings to load crude from the US Gulf Coast have already been canceled over the last 24 hours as costs become unsustainable. Oil supply chains are under historic stress.(The Kobeissi Letter)