Soaring Freight Rates Give US Refiners Edge As Crude Discounts Widen

By Vallari Srivastava and Sumit Saha

Nov 6 (Reuters) – The Iran conflict has sent tanker rates soaring, forcing sellers to deepen discounts on heavy crude grades and giving US Gulf Coast refiners a cost advantage over Asian rivals, executives said after reporting bumper third-quarter profits.

Security threats around the Strait of Hormuz, a key maritime chokepoint through which about one-fifth of global oil and liquefied natural gas supplies passed before the war started, have disrupted tanker traffic, while higher war-risk insurance premiums and longer voyages have driven upshipping costs.

The disruption particularly benefited US Gulf Coast refiners, which