Oil Buyers News

Oil and fuel tanker traffic in the Red Sea was stable in December, even though many container ships have rerouted due to attacks by Iran-aligned Houthi militants, a Reuters analysis of vessel tracking data showed.The attacks have driven up shipping costs sharply along with insurance premiums, but have had less impact than feared on oil flows, with shippers continuing to use the key East-West passage. The Houthis, who have said they are targeting Israel-bound vessels, have largely…

U.S. lawmakers from both political parties have urged President Joe Biden and members of his administration to resolve a months-long delay in the transfer of a cargo of oil from a seized Iranian tanker off Texas.The Suez Rajan has been stuck near Galveston about 50 miles (80 km) from Houston since May 30, as shipping companies fear any vessel unloading it would lead other oil buyers to shun their ships on future voyages. The U.S. seized the tanker in a sanctions enforcement operation.The delay in discharging the cargo is also partly out of fear of repercussions from Iran. A senior commander of Iran's Revolutionary Guards' navy said last month Iran would retaliate against any oil company unloading Iranian oil from a seized tanker.Senators Joni Ernst…

A cargo of sanctioned Iranian crude oil that was confiscated by the U.S. has sat off the Texas coast for eight weeks, unable to unload because commercial agents fear any vessel that takes it will be shunned by customers, people familiar with the matter said.Suez Rajan, a Marshall Islands-flagged tanker, has been anchored off Galveston, about 50 miles (80 km) outside of Houston, since May 30, with ship agents refusing to accept it. The Suezmax requires a lightering agent to transfer the crude to smaller ships, as its size and weight restrict it from directly entering the port.Shipping companies are worried that lightering the Iranian crude onto their vessels would lead other oil buyers to shun their ships on future voyages…

Buyers of Russian oil have faced difficulties over payments and availability of vessels after imposition of Western sanctions against Moscow over Ukraine, traders said on Monday, while BP Plc has canceled fuel oil loadings from a Black Sea port.The West has introduced sweeping sanctions, including on the banking sector, after Russia's invasion of Ukraine. Russia calls its action a "special operation" to disarm Ukraine.The United States and its allies on Saturday moved to block certain Russian banks' access to the SWIFT international payment system that helps international trade flow smoothly.

The global oil market was thrown into chaos on Thursday after Russia invaded Ukraine, with top buyers of Russian oil struggling to secure guarantees at Western banks or find ships to take crude from one of the world's largest producers.At least three major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases on Thursday, four trading sources said, citing market uncertainty after the Russian invasion.Russia produces every 10th barrel in the world and oil prices jumped to above $105 per barrel on Thursday, their highest since 2014, due to fears of disruptions.In the Black Sea, a Turkish-owned ship was hit by a bomb off the coast of Ukraine's port city Odessa…

Oil prices settled 5% higher on Friday in their second consecutive week of gains as U.S. producers cut production with the number of drilling rigs falling to a record low, and as more states moved ahead with plans to relax lockdowns intended to halt the coronavirus pandemic.The number of operating oil and natural gas rigs fell by 34 to an all-time low of 374 this week - reflecting data going back 80 years - as the energy industry slashes output and spending to deal with the coronavirus…

Nearly 300 oil tankers globally have been placed off limits as companies fear violating U.S. sanctions against Iran and Venezuela, driving freight rates to new highs, industry sources said.The move has taken roughly 3% of the global oil tanker fleet out of the market, according to industry sources and data on Refinitiv Eikon, sending rates soaring to secure tankers to ship oil, particularly to Asia."Freight rates are going through the roof and people are getting very nervous with the cost of shipping…

Oil freight rates in the Middle East and Asia have increased by almost 20 percent today following new US sanctions on units of Chinese company COSCO for its alleged involvement in ferrying crude oil out of Iran.In what the U.S. State Department has described as “one of the largest sanctions actions the U.S. has taken” since restrictions were re-imposed on Iran in November 2018, two units of COSCO, as well as other companies, were named in claims of involvement in sanctions-breaking Iranian oil shipments.Asian oil buyers have been rushing to the shipping market to charter vessels…

Saudi Arabia, one of the world's top oil exporters, called on global oil buyers to secure their energy shipments passing through the Strait of Hormuz, Energy Minister Khalid al-Falih said on Thursday."We, of course, call on the international community and have discussions with my counterpart Minister Pradhan today that India also needs to do its part of securing free navigation of sea links transporting energy to the rest of the world," al-Falih told Reuters after meeting with India's Petroleum Minister Dharmendra Pradhan.Concerns of disruptions in the Strait of Hormuz, where about 20% of global supply is transported daily, have increased after the Iranian Revolutionary Guards seized the British-flagged oil tanker Stena Impero in the waterway on Friday in apparent retaliation for the Briti

Medium-sour crudes from the U.S. Gulf of Mexico are being snapped up by overseas buyers, paving way for a record six supertankers to load at the Louisiana Offshore Oil Port (LOOP) in a matter of weeks, according to people familiar with the matter.The six scheduled loadings in late May and early June would double the record of Very Large Crude Carriers (VLCCs) reached in December. An unusual influx of Gulf of Mexico crudes to the U.S. deepwater export port and weakening prices are contributing to the exports…

Russian oil quality from the Baltic port of Ust-Luga was improving on Thursday but still not good enough for refiners in Europe, with required standards expected only by May 11, trading sources said.The oil has been contaminated with organic chlorides, which can destroy refining equipment.

A vessel carrying 2 million barrels of Iranian oil discharged the crude into a bonded storage tank at the port of Dalian in northeast China on Monday, according to Refinitiv Eikon data and a shipping agent with knowledge of the matter.Iran, the third-largest producer in the Organization of Petroleum Exporting Countries (OPEC), is finding fewer takers for its crude ahead of U.S. sanctions on its oil exports that will go into effect on Nov. 4. The country previously held oil in storage at Dalian during the last round of sanctions in 2014 that was later sold to buyers in South Korea and India.The very large crude carrier Dune, operated by National Iranian Tanker Co…

Chinese oil buyers will keep taking crude from the United States through September, but plan to reduce future purchases to avoid a likely import tariff amid a trade spat between the world's two largest economies, multiple industry sources said.Beijing has put U.S. energy products, including crude oil and refined products, on lists of goods that it will hit with import taxes in retaliation for similar moves by Washington.Beijing did not specify when it will impose a 25 percent tax on oil…

Port officials on Tuesday are expected to consider $300 million in financing that would prepare the country's largest oil-export port - Corpus Christi, Texas - to handle a surge in U.S. shale production over the next five years.International buyers would like more U.S. crude but are unable to get it because of infrastructure constraints along the U.S. Gulf Coast. Terminals originally designed for imports only recently have revamped operations to handle exports including accepting…

Iran's crude oil exports have declined slightly in May, according to estimates from a leading tanker-tracking company, in the first sign that the threat of U.S. sanctions may be deterring buyers.The estimates from Geneva-based Petro-Logistics also suggest Iranian oil buyers are not rushing to cut volumes from OPEC's third-largest producer. The U.S. sanctions have a 180-day period during which buyers should "wind down" purchases.U.S. President Donald Trump on May 8 said the United…

Iran has managed to sell only modest volumes of oil to Europe since the lifting of sanctions seven weeks ago and several former buyers are staying away, citing legal complications and Tehran's reluctance to sweeten terms to win back customers. Tehran had been unable to sell crude to European firms since 2012 when the EU imposed sanctions over its nuclear programme, depriving it of a market that accounted for over a third of its exports and leaving it relying completely on Asian buyers. Since the restrictions were lifted in January, Iran has sold four tankers - 4 million barrels - to Europe, including to France's Total, Spain's Cepsa and Russia's Litasco, according to Iranian officials and ship-tracking data.

The media in Tehran said on Saturday that Japan plans to extend a contract to purchase crude oil from Iran. Shana news agency – affiliated to Iran’s Ministry of Petroleum – has reported that Japan’s contract will be extended until April 2017. It added that the volume of oil that the country will purchase from Iran will also increase from the current level of 110,000 barrels per day. No figure was nevertheless provided on how much this will increase. Japan is one of Iran's biggest oil buyers but its crude imports have nearly halved from 2011 levels before sanctions. Japan has chose to lift its sanctions on Iran after the International Atomic Energy Agency (IAEA) confirmed the country had implemented measures promised under the newly-reached deal on its nuclear programme…

Japanese buyers of Iranian crude will have to keep using special sovereign shipping insurance to import oil for the foreseeable future, despite the lifting of sanctions against Tehran, industry and government sources said on Monday. Shippers face uncertainty over whether they can get coverage from U.S. insurers after sanctions were lifted and it means the Japanese government may have to get parliamentary approval to extend the scheme beyond March. Tokyo stepped in to help its oil importers after Western sanctions imposed over Tehran's disputed nuclear programme curbed the ability of private insurers to provide tanker cover. The U.S.

South Africa wants to resume oil imports from Iran, once its biggest supplier, and hopes to resolve "sanction issues" that have blocked purchases within the next three months, its deputy foreign minister said on Tuesday. South Africa bought around 68,000 barrels of oil per day (bpd) from Iran in May 2012, a month before it halted crude purchases as Western countries pressured Tehran over its nuclear programme. That was well down from peak purchases in 2011. Africa's second biggest crude consumer imports around 380,000 bpd, with Saudi Arabia overtaking Iran as its biggest supplier in 2012 when Western sanctions increased. Nigeria, Angola and Ghana also sell South Africa oil.

According to reports, there are mixed messages being transmitted around the tanker market. The threat of further cuts in crude production by Opec is being brought closer as oil prices fall on world markets. Unseasonal weather conditions still have a lot to do with sentiment and while stock levels remain above average, oil buyers are likely to play a waiting game. Then as oil prices ease down due to the shortage of activity, oil buyers tend to return to the marketplace. But by then freight rates have taken a small dive. But there is hope on the horizon. VLCC rates are starting to strengthen as charterers take a longer view. For instance…

Libya's Tripoli-based state firm National Oil Corp (NOC) will remain independent, it said on Thursday, in an apparent attempt to reassure foreign oil buyers it will stay out of the country's conflict.   Libya has two governments vying for legitimacy which have been trying to control the vital energy sector. NOC is based in Tripoli, where the non-internationally recognised government sits.   "Regardless of the continuing challenges on various levels, NOC will remain independent," NOC said in a statement. "As the sole legal entity to represent and act on behalf of the Libyan oil and gas sector, NOC will continue the sound partnerships with international oil companies."   (Reporting by Ulf Laessing; Editing by Pravin Char)

Libya's recognized government said it forced a tanker from delivering fuel to its rival administration, diverting the vessel to its own territory by threatening an air attack on it. The tanker Anwaar Afriqya was approaching the port of Misrata, but diverted to Tobruk, a port official at the latter said on Monday. "Our planes are forcing an oil tanker to sail to Tobruk after it had been on the way first to Misrata," Saqer al-Joroushi, air force commander for recognized Prime Minister Abdullah al-Thinni, told state news agency Lana. Libya's recognized government works from a headquarters in the east of the country since the summer when rival forces under the banner Libya Dawn took over the capital Tripoli and installed their own self-proclaimed government.

Libya's recognized government has released a tanker forced to dock at a port under its control after originally banning it from delivering fuel to its rival administration, a port official said on Tuesday. War planes forced the tanker Anwaar Afriqya to sail to Tobruk after it had originally approached the port of Misrata, the air force commander for the recognized Prime Minister Abdullah al-Thinni said on Monday. Libya's recognized government has worked from a headquarters in the east of the country since the summer when rival forces under the banner Libya Dawn took over the capital Tripoli and installed their own self-proclaimed government.