Freight now eats nearly 90% of Asia’s refining margin. About $40 a barrel gross... $36 of it goes to the tanker. In January, freight from the Gulf to China cost about $2 a barrel. Now it’s about $36. Refiners keep about $5. In March they kept over $40. China is already buying less. Crude imports fell 21.5% in September, and refiners burned through record stockpiles instead. Sinopec expects Chinese oil demand to fall 8.9% this year. Reuters says Gulf producers may have to absorb the freight themselves to keep Asia buying. The tanker owners are winning this war. The producers are paying for it.