JPMorgan Reveals Shocking Truth Behind Rising Oil Prices

The Shipping Bottleneck

JPMorgan's analysis reveals that the world's tankers are running out of capacity, with 766 of the 923 supertankers already in use by September. Another 124 Iranian vessels are inaccessible due to US sanctions, further limiting shipping options. The remaining ships face longer journeys, and transferring oil between vessels can take up to 10 days.

The Cost of Shipping

The shortage is already hitting freight markets, with a supertanker hired for $1.162 million per day on October 7. This is a significant increase from the 2025 average, excluding Iranian shipments. JPMorgan warns that higher shipping costs are squeezing refiners, potentially forcing some facilities to reduce production.

The Impact on Refiners

European refining margins are turning negative, a sign that the high shipping costs are having a ripple effect throughout the supply chain. The bank's findings raise a bigger question: What happens when governments release more oil than available ships can efficiently transport?

The Complex Oil Market

For investors, shipping capacity is becoming increasingly important. Tanker-focused investments have already drawn attention amid the disruption. Until shipping costs ease, additional crude supplies may offer limited relief to buyers. The World's Oil Tankers Are Running Out of Capacity According to JPMorgan, 766 of the world's 923 supertankers were already in use by September. Another 124 Iranian vessels are largely inaccessible to mainstream shipping because of US sanctions. The remaining ships face longer journeys, while transferring oil between vessels can take up to 10 days. Consequently, moving Middle Eastern crude now requires 35 more supertankers than the 2025 average, excluding Iranian shipments. 'In April, the problem was a shortage of crude. In October, it is the cost of moving it,' JPMorgan analysts Natasha Kaneva, Lyuba Savinova, and Artem Fakhretdinov wrote. One Oil Tanker Now Costs $1.16 Million a Day The shortage is already hitting freight markets. On October 7, a supertanker heading to South Korea was hired for $1.162 million per day, according to Seatrade. Meanwhile, Brent crude traded near $102.77 on October 9, while US crude reached approximately $93.13. US and UK Crude Oil Spot Prices. Source: TradingView Higher shipping costs are squeezing refiners, too. JPMorgan warned that European refining margins are turning negative, potentially forcing some facilities to reduce production. Can More Oil Actually Bring Prices Down? Earlier this month, G7 nations agreed to release 100 million barrels from emergency reserves. President Donald Trump also claimed the Strait of Hormuz no longer drives gasoline prices. However, JPMorgan's findings raise a bigger question: What happens when governments release more oil than available ships can efficiently transport? For investors, shipping capacity is becoming increasingly important. Tanker-focused investments have already drawn attention amid the disruption. Until shipping costs ease, additional crude supplies may offer limited relief to buyers.