Supertankers Waiting to Load Murban Crude After Floods Shut Fujairah
At least four supertankers are waiting to load Murban crude off Fujairah in the United Arab Emirates a week after floods shut operations at the oil hub, according to trade sources and shipping data on Refinitiv Eikon.Last Thursday, the Abu Dhabi National Oil Company (ADNOC) said it had shut down its operations at Fujairah terminal due to "exceptional rainfall".The company had said it would divert Fujairah terminal oil lifting to the Jebel Dhanna terminal which can handle Murban shipments.However, supertankers are still waiting off Fujairah and it remains unclear when loading will resume, according to the sources and Refinitiv data.Two…
Iraq Oil Lifting Remains on Hold
Iraqi oil lifting remained on hold as Baghdad continued to insist on a surcharge for crude sales under the UN's oil-for-food program, industry sources said. A tanker chartered to the Indian Oil Corp (IOC) remained berthed at Iraq's Mina al-Bakr port on the Gulf but that no oil was being pumped aboard. An industry official in India said that IOC had been asked to pay a surcharge outside the terms of the UN exchange in order to secure its cargo but had refused. Iraq suspended 2.3 million barrels daily of oil sales on December 1. Another seven vessels were anchored outside the port. There were no vessels at Iraq's other authorized outlet Ceyhan, in Turkey.
Abundance Of Ships Keeps Rates Depressed
Charter rates for product tankers continued to be depressed as surplus tonnage kept a lid on rises last week despite an increase in business in several loading areas. The Middle East saw levels fall. Tankers carrying 25,000 tons into India were seen taking W165, the same for 30,000 tons to Japan. Larger ships carrying 75,000 tons to Japan were attracting around W120. Shipping brokerage E.A. Gibsons said there was sufficient prompt tonnage of LR 2s to indicate that rate may decline further. Increased chartering in the Mediterranean did not propel rates higher. Shippers said it was an all-too familiar problem of too many ships chasing too few cargoes. Rates for 30,000 tons of gas oil hovered around W110-120 with naphtha cargoes of 27,500 were able to secure carriage around W150.
Saudi Aramco To Turn Back Some Tankers
Saudi Arabia's state oil company has informed shipping agents at the Gulf state's ports that it will turn back tankers that are not prepared for the Y2K potential computer glitch, an industry source said. Experts on Gulf oil industries say Saudi Arabia -- the world's biggest oil producer -- is the best prepared in the Gulf for Y2K. Saudi Aramco is requiring ship captains to fill out questionnaires to determine if their vessel is Y2K compliant, the industry source said. Saudi Aramco has also informed shipping agents of restrictions for tankers using the country's ports and terminals and has said that planned December crude oil lifting commitments would be met by December 31.
