Tanker Shortage To Squeeze Northeast's Oil Supply

Wednesday, October 25, 2000
A shortage of U.S. oil tankers will cut sharply into Northeast heating oil and gasoline supplies next month and will add to upward price pressure to refined products through the winter, oil traders and brokers said.

The number of domestic vessels used to haul petroleum products to New York Harbor and New England consumer hubs will be reduced by about a third this winter compared to last year, said a source familiar with vessel traffic.

In addition to cyclical factors such as tanker maintenance and retirement of older ships, major oil companies such as BP and Exxon Mobil are tying up a few more vessels than normal this year to haul Alaskan North Slope crude, brokers said. The shortage of tankers is particularly acute in November and will continue through about March. That may mean less heating oil on the U.S. Northeast wholesale cash trading hubs at a time when wafer-thin stocks of the winter fuel are already threatening price spikes as winter sets in, oil traders say.

Normally about 18 of the 80 U.S.-flagged ships that are allowed to haul petroleum products around the nation are available for moving refined product to the Northeast oil cash markets. "This year, you're only going to see about a dozen in the spot market for the full 250,000- to 300,000-barrel capacity," the source said.

Despite the lack of available ships, those in the petroleum shipping trade do not expect a waiver of the Jones Act, which keeps foreign vessels from hauling crude oil and its products on domestic shipments.

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Norwegian Car Carriers to Buy Two from Hyundai Samho

Oslo-listed Norwegian Car Carriers (NOCC) has signed a contract with Hyundai Samho Heavy Industries for the construction of two 6500 ceu Pure Car Truck Carrier (OCTCs).

Boatbuilding in China

While much of the focus on coverage of the Chinese shipbuilding industry is on big shipbuilding, Maritime Reporter switches gears this month to explore activities in select boatbuilding sectors.

HMS Prince of Wales Bridge Sets Sail

The bridge section of the second Queen Elizabeth Class aircraft carrier set sail today from Glasgow on its first sea voyage to Rosyth.   Upper Block 07 is where

Offshore

Falklands' Oil Drilling at Isobel Deep Suspended

Oil explorers drilling in the waters north of the Falkland Islands have suspended work on the second well of their 2015 current six-well drilling campaign after a technical problem.

Arctic Nations to Fight Climate Change Despite Russia Tensions

The eight Arctic Council nations pledged on Friday to do more to combat climate change that is shrinking the vast frigid region, with countries trying to put

OSV Technology: Notable Designs & Deliveries

Though the market for Offshore Support Vessels (OSVs) is soft, advances in technology, fit and finish in  the sector is unrivaled in any other maritime niche over the past five years.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pod Propulsion Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1287 sec (8 req/sec)