Panama Canal Oil Shipments Surge 70% as Asian Buyers Pivot to US Crude
Oil cargo volumes through the Panama Canal jumped 70% year-on-year. Asian refiners are increasingly turning to US crude to avoid the uncertainty the Iran war has created on Persian Gulf shipping routes.
According to figures cited by Nikkei Asia, oil shipments through the Panama Canal rose 70% compared with the same period last year. Asian refiners have begun favouring Atlantic-side routes to avoid the security risks tied to transit through the Strait of Hormuz.
Canal officials said the United States is expanding its share of LNG and crude oil supply previously sourced from the Gulf, while buyers in China, Japan and South Korea have rapidly increased orders for crude from the Permian Basin. The Panama Canal Authority said it is working on additional transit capacity and dedicated time slots for tankers.
Analysts say the volume jump is not merely a short-term response to the Iran war but a sign that US oil exports are taking on a more permanent role in the global supply balance. Persistent drought in Panama, however, continues to limit how much further canal traffic can grow.
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