The Energy Information Administration (EIA) is a primary source of data relating to global petroleum and distillate use. It follows production, transport and prices. In addition to supplying data, they provide some interpretation of the global picture. There is so much BS circulating about fuel costs that a credible source of information is welcome.

Oil tankers come in two varieties- clean and dirty. A clean tanker hauls low-sulfur distillates. A dirty tanker hauls crude oil. Since the invasion of Ukraine, tanker shipments from Russia to the west have fallen off and longer voyage shipments have increased. This has increased the cost of transport and floating storage of petroleum and distillates. In the time between February 2022 and November 2022, Very Large Crude Carrier (VLCC) rates from the Middle East to the US Gulf Coast (USGC) have more than tripled. The rates from USGC to Rotterdam have increased from $8.00 to more than $27.00 per metric ton. Rates of shipments on Suezmax ships have also tripled. Dirty tanker rates from Russian ports in the Baltic and Black Sea have gone up due to increased insurance rates. Also, add to all of this the increased cost of bunker fuel for longer voyages.

Shipments of LPG (propane) have been delayed by long waiting times for passage through the Panama Canal. Congestion at the Neopanamax locks has led to increased scarcity of Very Large Gas Carriers (VLGC). Propane is both a fuel and an industrial feedstock. Propane is dehydrogenated to propylene and used for the production of polypropylene. Propane is also a fuel whose demand is highly seasonal with greatest demand in the winter months. VLGCs in the Middle East are drawn out of the area by better rates in the US, creating scarcity there.