Freight Squeeze Causes Heavy Oil Glut in Americas and Shortages in Global Markets

Key Facts

The Americas are experiencing a glut of heavy crude oil as high freight costs restrict export flows. Reuters reported that the surge in shipping expenses is preventing the efficient movement of oil to international markets, leading to a local oversupply.

Refiners in Asia and Europe are struggling to secure heavy oil barrels amid ongoing shipping disruptions. According to Reuters, this logistical bottleneck has created a regional imbalance, leaving heavy crude stranded in the Americas while overseas buyers face supply shortages.