Crude oil shipping costs soar more than 6 times, Strait of Hormuz triggers second round of oil price shock.

BlockBeats news, October 22 - A Goldman Sachs report shows that the global average cost of crude oil transportation has risen from about $3 per barrel a year ago to more than $20, with major Middle East routes exceeding $35 per barrel. War risk triggered by the Strait of Hormuz crisis, ship-to-ship transfers, rising fuel costs, and declining tanker scheduling efficiency are collectively driving up crude oil transportation costs, creating a new round of energy price pressure.

Goldman Sachs estimates that the Strait of Hormuz war risk premium adds about $7 per barrel to transportation costs, ship-to-ship transfers add about $4, rising marine fuel costs add about $4, declining tanker scheduling efficiency and route diversions add about $3, and the reduced availability of Iranian tankers contributes about $2.

The surge in transportation costs has also widened regional crude oil price spreads, with the Brent-WTI spread recently reaching about $14 per barrel, significantly higher than the usual level of about $5. Goldman Sachs notes that Asian refiners are particularly vulnerable, and some European refiners have begun reducing crude oil imports and processing volumes.

Goldman Sachs expects Brent crude prices to fall back to about $90 per barrel by the end of this year and average $80 per barrel in 2027. However, if transportation, insurance, and refining costs remain elevated, refined product prices such as gasoline and diesel may remain high even if crude benchmark prices decline, further increasing energy inflation pressure.