After ceasefire, Glencore and Taiwan refiners book tankers to fill Middle East oil
?Commodities traders Glencore and Taiwan’s state refiner CPC chartered a vessel each to load Middle Eastern oil for Asia.?Vessels in the Gulf prepare?to leave via the Strait of Hormuz a day...after the 'ceasefire' in the U.S.Iran war.
The two-week ceasefire hinges on allowing ships to pass through the Strait. This is a chokepoint that accounts for 20% of all global LNG and oil shipments, which were brought to a standstill during the six-week conflict. Global energy prices have soared as a result.
More than half of the crude oil and naphtha used in fuel and petrochemical production by Asian refiners comes from the Middle East.
To compensate for the loss of fuel supply due to war, countries have reduced their strategic crude stocks and increased subsidies.
Kung Ming Hsin, Taiwan's Economy Minister, told reporters Thursday that the state-owned refiner CPC has booked a tanker to transport?2million barrels of crude oil from the Gulf.
He said, "If it is possible to pass within the next couple of weeks or so, then it could come over."
This can be used for an extra half-month or more. This will ease the situation."
RUSH TO BOOK TANKERS
After hearing of the ceasefire, refiners, energy companies and trading firms rushed to book tankers for Middle Eastern crude bound for Asia.
Two shipping sources confirmed that Glencore had provisionally chartered W860 for a Suezmax to load the Basra Oil Terminal in Iraq. This is based on Worldscale, an industry measurement used to calculate freight charges. Two shipping sources confirmed that the tanker, which can hold 1 million barrels, is already in Gulf.
The sources claimed that Glencore's previous attempt to book the very large crude carriers (VLCCs) Asian Lion failed.
Middle East oil exporters, such as Iraq, are prepared to resume crude exports when the Strait is reopened.
Spot VLCC rates along the route, also known as TD3C
Singapore-based traders said that tanker rates will remain high due to an increase in demand for vessels entering the Gulf and the war risk premiums, but that fewer ships were available because many were ballasting their way to the Americas, to load cargoes.
CHINESE AND INDIAN VESHELS ANCHOR NEAR HORMUZ
The tankers in the Gulf are getting ready to leave.
Shipping data from LSEG shows that two VLCCs with Chinese flags, He?Rong Hai & Cospearl Lake, headed towards the Strait of Malacca on Thursday.
The vessels, including the China-flagged Yuan Hua Hu and the India-flagged Desh Vibhor and Desh Suraksha and Sanmar Herald carrying crude oil for state energy giants, have updated AIS information on their respective nations and native crews.
The data revealed that several tankers visited the port of Zirku in the United Arab Emirates late Wednesday night and early Thursday morning to replenish with Upper Zakum crude.
Some shippers expressed?concern' on Wednesday and called for more clarity regarding the?terms? of the U.S.Iran ceasefire, before resuming their transit through the Strait?of Hormuz. Iran claimed that it remained closed to ships sailing without a license.
The semi-official ISNA news agency reported on Thursday that the Iranian Revolutionary Guards Navy posted a map of alternate shipping routes through the Strait of Hormuz in order to assist transiting ships to avoid naval mines.
(source: Reuters)
