Coronavirus Leaves China-bound Tankers Stranded
The coronavirus's effect on energy markets is worsening, as the sharp fall in demand in China, the world's largest importer of crude, is stranding oil cargoes off the country's coast and prompting shippers to seek out other Asian destinations.More than 1,360 people have died from the coronavirus in China, which has disrupted the world's second largest economy and shaken energy markets, with international benchmark Brent crude oil down 15% since the beginning of the year.Major international energy forecasters expect demand to fall in this quarter…
COSCO VLCC Wins Temporary Sanction Relief
A supertanker owned by COSCO Shipping Tankers (Dalian) has received a temporary waiver from U.S. sanctions that has allowed the ship to discharge crude oil cargoes, a source with direct knowledge of the matter said on Wednesday.The Very large crude carrier (VLCC) Coswisdom Lake, which discharged some crude in Singapore last week, offloaded its remaining oil at Brunei on Wednesday, shipping data on Refinitiv Eikon showed.The sanctions will resume after the cargoes are discharged, the source said.Sanction waivers were also being sought for a very large crude carrier carrying U.S.
Two LNG Dual-Fuel DP Shuttle Tankers Unveiled
AET, a petroleum tanker owner and operator, has named its newest vessels, two of the world's first LNG Dual-Fuel Dynamic Positioning Shuttle Tankers (DPSTs). The vessels, the cleanest DPSTs ever built, will emit 40-48% less carbon than equivalent vessels built in 2008, meeting the International Maritime Organization's (IMO) target of reducing carbon (CO2) emissions by 40% against 2008 baselines by 2030, and halving CO2 emissions by 2050.These LNG Dual-Fuel DPSTs also emit 85% less SOx…
Kutubu Light Crude Oil Exports to Resume in Spot Trade
Sales of Kutubu Light crude oil cargoes will resume in the Asia spot market in July after a major earthquake in Papua New Guinea shut production from late February to early April, three industry sources said on Monday.While production at the facility resumed in early April, producers of the light crude oil have been trying to meet previously committed cargoes to buyers which had been delayed due to the earthquake, one of the people said.The sources declined to be identified because they were not authorized to speak with media.The July-loading program will be the first time since February that Kutubu Light crude will be fully available in the spot market…
Force Majeure Declared on Some North Sea Liftings
Pipeline shut on Dec. 11; repair work could last several weeks. Deliveries of crude oil through the Forties pipeline in the North Sea are under force majeure for the first time in decades and operator INEOS said on Thursday there was no timeline yet for repair work that could last several weeks. The 169-km pipeline, which carries around a quarter of all North Sea crude output and around a third of Britain's total offshore gas production, has been closed since Monday, following the discovery of a small crack in part of the system onshore in Scotland. Force majeure, which suspends a company's contractual obligations in the wake of situations that lie beyond its control, is common in oil-producing nations like Nigeria where unrest often disrupts output, but very rare in the North Sea.
India's Reliance Makes First Purchase of US Crude
India's Reliance Industries Ltd, owner of the world’s biggest refining complex, has bought its first ever crude oil cargoes from the United States, drawn by the oil's economics after the price spread between U.S. crude futures and Brent futures widened, three trade sources said on Tuesday. Reliance bought 1 million barrels each of West Texas Intermediate (WTI) Midland and Eagle Ford crude which are expected to arrive in November, they said. (Reporting by Nidhi Verma, Florence Tan and Jessica Jaganathan)
Asia VLCC Rates Hold Steady after Near 4-week High
Freight rates in Asian trades for very large crude carriers (VLCCs) are set to hold steady around current levels next week, after hitting a near four-week high on Thursday, as tanker supply matches cargo demand. "I can't see the market crashing, or spiking. There are enough ships - there is no real shortage of tonnage," a Singapore-based supertanker broker said on Friday. Around 32 VLCC cargoes have been fixed for loading in the Middle East in the first 10 days of March with 6 to 12 charters still to be agreed, he said.
Bahri Orders VLCC Newbuilds
The National Shipping Company of Saudi Arabia (Bahri) today signed an agreement with Hyundai Samho Heavy Industries (HSHI) Co. Ltd. to build five very large crude carriers (VLCC), plus an option for five more VLCCs. The signing ceremony was attended by Eng. Ibrahim Abdulrahman Al-Omar, Bahri’s Chief Executive Officer and Mr. S. H. Ka, Hyundai’s Member of the Board & Chief Operating Officer. Eng. Al-Omar, stated that this agreement is in line with Bahri’s plans to renew and expand its fleet to meet the requirements of both local and international markets. The first five VLCCs are due for delivery during 2017. Bahri noted that these carriers are designed to the latest international technical specifications and are fitted with environment friendly and fuel efficient engines. Eng.
Bahri Inks Contracts with Hyundai to Build 5 VLCCs
The National Shipping Co. of Saudi Arabia (Bahri) signed contracts on Thursday with Hyundai Samho Heavy Industries (HSHI) to build five very large crude carriers (VLCCs), with an option for additional five more vessels, the company said in a bourse statement. The carriers will be delivered in 2017, and the relevant financial impact will materialize after the delivery. The VLCCs are designed in-line with the latest international technical specifications, with a capacity of 300,000 DWT per carrier. Eng.
High Shipping Costs Deter Buyers of W. Africa Crude
Nigerian crude oil differentials held at two-year lows on Monday as demand remained subdued, partly due to high shipping costs from West Africa to Europe. Nearly half of the loading program for August, which originally had 65 cargos, was unsold on Monday. But traders said that demand might pick up temporarily later this week as traders placed cargoes for India Oil Company's import tender. High freight rates aboard suezmaxes to Europe are deterring shipments to refineries there, traders said. Rising exports of similar oil grades from Libya has also hurt demand. Libyan oil output has risen to 470,000 barrels per day (bpd) as the El Sharara oilfield ramps up, the state-run National Oil Corp (NOC) said on Sunday.
Saras Urges European Steps on Refining as Profit Slumps
Italy's Saras urged Europe to take steps to restore the competitiveness of the region's refining sector after it posted an 85 percent slump in its core earnings in the first three months due to weak refining margins. Europe's refining sector is facing growing pressure from increasing international competition, excess production capacity and weak domestic consumption. "We hope that the European Authorities will finally become fully aware that the competitiveness of this absolutely strategic sector is progressively being eroded…
Crude-Tanker Cargo Rises 32 Percent on Saudi Exports: Report
The supply of crude oil cargoes for the largest tankers rose 32 percent so far this year, as Saudi Arabia boosted exports to compensate for the possibility of fewer Iranian cargoes, Arctic Securities ASA said. Very large crude carriers hauled 97 million metric tons of oil in the first 11 weeks of the year, up from 73.7 million tons during the same period of 2011, Oslo-based analyst Erik Nikolai Stavseth said by phone. Shipments strengthened as Saudi Arabia boosted production before an embargo on Iranian oil takes effect in July, he said. The U.S., the world’s largest oil consumer, imported an average of 1.5 million barrels a day from Saudi Arabia this year, on course for the highest quarterly average since September, 2008, according to preliminary data from the Energy Department.