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 September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Water-cooled WGM Motors From WEG

WEG, a supplier of drive technology, introduced its water-cooled WGM motors to the shipbuilding industry for the first time at SMM 2014. The WGM water-cooled induction motors are compact,

Henderson, Hanes & Associates Opens Doors in Miami

Ocean Engineering/ Naval Architecture Firm Brings Innovation to the Mega Yacht Community The Miami-based ocean engineering and naval architecture firm of Henderson & Associates, Inc.

Austal Launches Trenton (JHSV 5)

Second Joint High Speed Vessel to be launched at Austal in 2014 On September 30, 2014, Austal USA successfully completed the launch process of Trenton (JHSV

Offshore

Victaulic Debuts Delta-Y Assembly for Offshore

Victaulic  introduces the Style DLY Delta-Y assembly, a combination of preassembled Victaulic cast grooved fittings, rigid couplings and butterfly valves. The Delta-Y

MOL Merges Group Companies; Upgrades Bridge Simulator

MOL adds DPS and enhances safe operation by integrating expertise through merger Mitsui O.S.K. Lines, Ltd. (MOL) announced the merger of MOL Marine Consulting, Ltd.

Swire Pacific Acquires 3rd L Class PSV

Shipowner and operator, Swire Pacific Offshore Operations (Pte) Ltd (SPO) celebrated the naming and delivery of its third L Class PSV vessel, Pacific Legend in Kyoto,

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1757 sec (6 req/sec)