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To: Zhang Fei

I would guess that ocean freight from the Persian Gulf to the civilized world would exceed $3 per barrel.


9 posted on 02/12/2016 1:33:54 PM PST by Mr. Lucky
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To: Mr. Lucky
I would guess that ocean freight from the Persian Gulf to the civilized world would exceed $3 per barrel.

A VLCC that can transport 2m barrels of crude from Dubai to Newark would take about 30 days to complete the journey, at a rate of about $100K a day. That's $3m divided by 2m barrels, or about $1.50 per barrel. In contrast, fracked oil that has to be transported by rail inside these United States, from point of extraction to storage facilities, involves rail transport costs of $10 to $15 a barrel. That's part of the reason why WTI is consistently a few dollars less than than Brent, despite the fact that WTI is easier to refine.

10 posted on 02/12/2016 1:55:46 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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