Largest-ever Diesel Cargo Heads to Europe
Europe is expected to receive its largest-ever diesel cargo after French refiner Total booked a super tanker to sail to the region even as it faces brimming storage tanks and wilting demand. Total has chartered the newly-built very large crude carrier (VLCC) tanker Alice to ship 270,000 tonnes of diesel, three times the typical cargo size on the route, from Asia to the port of Antwerp in Belgium, according to shipping data and Reuters ship tracking. A cargo of this size is bound to put more pressure on Europe's diesel prices in a market already facing an influx of imports in the coming weeks from all corners of the world. Euronav-owned…
Intertanko Protests Nigeria Tanker Ban
Intertanko has issued a strong protest against Nigeria's decision to ban 113 tankers from its coast. Nigeria's state oil company NNPC has recently banned 113 oil tankers from the country's waters, citing a directive from President Muhammadu Buhari, in what traders said could be part of efforts to crack down on illegal crude oil trading. In a letter to Gbenga O. White questioned why these particular ships had been banned, with many on the list having never even traded to the West African nation before. It noted that no reference was given to policies and requirements relating to the ban or evidence of why individual vessels had been banned. The letter added: “Many of these vessels have not traded to Nigeria for a number of years; some have never been there.
NNPC Bans 113 Oil Tankers from Nigerian Waters
Nigeria's state oil company NNPC has banned 113 oil tankers from the country's waters, citing a directive from President Muhammadu Buhari, in what traders said could be part of efforts to crack down on illegal crude oil trading. The vessels, which include mainly VLCC crude oil tankers, are banned from calling at Nigerian crude oil terminals and also from Nigerian waters with immediate effect, said a letter circulated by NNPC, "pending a notice to the contrary by government". The letter, a copy of which was seen by Reuters and which gave no reason for the ban, was dated July 15. NNPC did not immediately respond to requests for comment. Since taking office in May, Buhari has been working to fulfil a campaign promise to tackle corruption, particularly in the oil industry.
Refineries Revolution Spurs Product Supertankers
The rapid growth of mega refineries is prompting a new class of oil products supertankers, mirroring an earlier revolution in crude oil shipping, as traders look for scale that was previously not economically viable. In the early 1970s, ships capable of carrying 2 million barrels of crude oil were built to mitigate disruptions from the closure of the Suez Canal and to meet growing global demand. Now, the products trade is spurring similar innovation. As the Middle East and U.S. Gulf Coast transform into refining hubs, traders require ever-larger tankers to move oil products such as gasoline, diesel and aviation fuel to Europe, Asia and Latin America.
Nexen Closing Crude Oil Trading Division
Nexen Energy, a wholly owned subsidiary of China's CNOOC Ltd, is closing its crude oil trading division following a round of job cuts announced last week, four market sources said on Monday. The Calgary-based company, which was acquired by state-controlled CNOOC in 2013 for $15.1 billion, cut 400 jobs last week in North America and the United Kingdom in response to plunging global oil prices. Three sources said Nexen was closing down its trading operations worldwide, although the majority of activity takes place in Calgary. The company will continue to market its own crude. Nexen did not immediately respond to requests for comment. In Canada, Nexen's crude oil desk is the biggest trading casualty so far of the global oil price rout, in which U.S.
Jones Act Tanker Market to Grow with Oil Production Boom
The Jones Act has been blamed for everything from higher prices of goods and oil to a shortage of rock salt supply in the Northeast during the past winter, but the 94-year-old U.S. federal statute governing the U.S. coastal shipping trades will not be going away anytime soon. The solid status of this deeply entrenched U.S. federal maritime law is reflected in heavy investments by oil, logistics and shipping companies in this lucrative domestic shipping sector. Last December, Kinder Morgan spent nearly $1 billion in its acquisition of its first Jones Act tanker assets when it bought American Petroleum Tankers and State Class Tankers. The market outlook for U.S.- flagged oil tankers remains bright, and some companies are banking on that.
