Lates News

Due to disruptions in navigation in the Strait of Hormuz, causing a blockage in Middle Eastern supplies, Asian oil refineries are increasingly turning to import American crude oil transported through the Panama Canal. The volume of American crude oil shipments through the Panama Canal has reached its highest level in nearly four years. According to shipping intelligence company Kpler, data for the first half of April shows that daily exports of American crude oil through this shortest route between the US Gulf Coast and Asia have exceeded 200,000 barrels, approaching the highest level since July 2022. Sources say that the increased waiting time to enter the Panama Canal has prompted crude oil carriers to pay over $3 million to expedite their passage. While the Panama Canal cannot accommodate the largest oil tankers, it still provides a shorter route to the Far East. It typically takes close to a month to reach Japan from the US Gulf Coast via the canal, compared to nearly double the time if going around the Cape of Good Hope in Africa. Data shows that the majority of oil tankers heading to the Pacific in March and April were carrying American crude oil destined for Japan and South Korea.