UNITED STATES — Rising tanker freight rates are threatening to push U.S. crude oil exports to Asia to their lowest level in seven years, as disruptions linked to the conflict involving Iran continue to affect global shipping. Higher transportation costs have made American crude oil less competitive for Asian refiners, reducing demand for long-distance shipments.

According to market traders, Asian refinery orders for U.S. crude oil scheduled for November delivery have declined by approximately 50% to between 24 million and 26 million barrels. Ship-tracking data from Kpler and Vortexa indicate that shipments could reach a seven-year low if the current purchasing trend continues through October.

Figures from the Baltic Exchange show that tanker charter costs from the U.S. Gulf Coast to China reached approximately $79.6 million earlier this month before declining to nearly $60 million as of October 22. Industry estimates indicate that transporting crude oil along the route now costs approximately $30 to $35 per barrel, significantly higher than last year.

Shipping market analysts attribute the increased costs to limited tanker availability, higher insurance premiums, fuel expenses, and disruptions around the Strait of Hormuz. Ship-to-ship oil transfers in the Gulf of Oman have also increased demand for available vessels. Vortexa analysts warned that high freight costs continue to discourage Asian buyers from purchasing U.S. crude, although additional cargo bookings could still affect final November shipment volumes.