Plasara
Oct 19, 2026
The global oil market is facing a new commercial imbalance: crude supply is recovering unevenly, but the cost of transporting and refining it is undermining the economics of physical energy trade.
The global oil market is facing a new commercial imbalance: crude supply is recovering unevenly, but the cost of transporting and refining it is undermining the economics of physical energy trade
Three developments define this week's market:
Hormuz crude flows deteriorated sharply. Kpler reported a seven-day average of approximately 8.5 million barrels per day (MMbpd), compared with more than 20 MMbpd the preceding week, as attacks on commercial vessels intensified.
Freight costs are compressing refining margins. Shipping and insurance can now represent up to 30% of delivered crude costs for some refiners, compared with a typical 3–7%.