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

Shipbuilding

Scorpio Tankers' Buyback Plan, Newbuild Delivery

Scorpio Tankers Inc. announced today (i) a new $250 million Securities Buyback Program, (ii) that it has recently taken delivery of an MR product tanker and

New Power Optimization Solution for LNG Carriers

NAPA and DSME launch tailored NAPA-DSME Power Solution for LNG carriers; leading LNG carrier shipyard offers specialized performance monitoring solution   South Korean shipbuilder,

BWTS Newcomer Sees Early Success

Norwegian manufacturer of ballast water treatment systems MMC Green Technology reports it has sold more than 70 systems since going commercial with its MMC BWMS two years ago,

Offshore

Kongsberg Contracted to Support FLNG Conversion

Kongsberg Maritime secures position in the LNG market with electrical and automation contract for Golar Hilli FLNG   Keppel Shipyard in Singapore and Black & Veatch in the U.

Statoil Awarded Licenses Offshore Nicaragua

Statoil informs it was today awarded four licenses offshore the Nicaraguan Pacific, covering an area of about 16,000 km2 in the largely unexplored Sandino Basin.

Mexico Removes Bid Limit on Shallow Water Oil Tenders

Mexico's oil regulator voted on Friday to relax previously established rules on bidding terms and contracts that form the first step in an historic sector opening

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Port Authority Ship Electronics Ship Repair Winch
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: 0.1207 sec (8 req/sec)