Red Sea shipping crisis sends shock waves through Asian fuel markets: ‘things are getting worse, not better’

“The most recent attack on a laden tanker suggests things are getting worse, and not better,” said Anoop Singh, global head of shipping research at Oil Brokerage Ltd. The diversions have added 3 per cent to demand for clean tankers, which carry refined products, and about 1 per cent to dirty-tanker demand, he said.

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Given the surge in freight costs, there are signs that fuel producers are having to slash cargo prices to keep supplies affordable for customers amid lukewarm buying interest for gas oil and jet fuel.

SK Energy Co. sold three gas oil cargoes last week for February-to-March loading at a steeper discount to regional benchmarks, traders said. The refiner also cancelled an offer of a jet-fuel cargo due to low bids.