Crude Oil News

17 Jan 2020

US Refiners Grab HSFO on Back of IMO 2020

© Fotos von Schiffen / Adobe Stock

U.S. refiners are scooping up cheap high-sulfur fuel oil for processing from Russia and the Baltic states as they take advantage of new shipping rules that have cut demand for the dirtier marine fuel, according to oil traders and shipping data.U.S. refiners Valero Corp, Chevron Corp and Phillips 66 have been buying HSFO, traders said, taking advantage of their complex operations to turn HSFO blended with crude oils into products like diesel, gasoil and gasoline.This month, 2.2 million tonnes of fuel oil…

12 Jan 2020

CSMC Takes Delivery of M/T ‘Aitolos’

 Image: Capital Ship Management Corp.

The Greek oceangoing vessel operator Capital Ship Management Corp. (CSMC) took successful delivery of the newbuilding vessel M/T ‘Aitolos’.The 115,000 dwt, eco-type crude oil tanker is built by Daehan Shipbuilding Co., Ltd, S.Korea, said a press note from the ship management services provider.M/T ‘Aitolos’ is the first of two sister ships to be delivered in 2020.Capital Group currently operates a fleet of 78 vessels including 48 tankers (10 VLCCs, 4 Suezmaxes, 7 Aframaxes, 26 MR/Handy product tankers and 1 small tanker)…

09 Jan 2020

Mideast Tensions Create Insurance Headache for Tanker Owners

© leodeep / Adobe Stock

Even as the United States and Iran appear to signal a keenness to avoid further conflict, oil and gas shipowners are bracing to pay a price for the war of words that culminated in rocket strikes in Iraq over the last week - higher insurance bills.According to industry sources, payments known as war risk premiums for tankers shuttling through the Strait of Hormuz could rise significantly, adding hundreds of thousands of dollars to shipping costs in some cases that will ultimately…

08 Jan 2020

NOx Control: Should Certain Vessels Get a Break?

(Credit: MAN)

When it comes to the EPA’s recent proposed delay to implementation of Tier 4 marine diesel engines ‘in certain high-speed commercial vessels,’ where you stand probably depends on where you sit.On September 6, the U.S. Environmental Protection agency (EPA) proposed to delay implementation of Tier 4 marine diesel engines “in certain high-speed commercial vessels.” Specifically; EPA mentions three kinds of vessels: lobster boats, pilot boats and a third, more open-ended reference to “other high-speed vessels,” possibly including hovercraft.

06 Jan 2020

Tankers Flock to US as Freight Rates Surge

© DJ / MarineTraffic.com

A flotilla of oil tankers is sailing empty from Europe and the Mediterranean toward the U.S. Gulf Coast to take advantage of surging shipping rates, according to shipping sources and Refinitiv Eikon data on Monday.Eight tankers, an unusually high number, are in the Atlantic and steaming to the United States, with capacity of up to 5.6 million barrels of oil combined, the people said. Freight rates for Aframax vessels out of the U.S. Gulf coast hit record levels last month, drawing…

05 Jan 2020

DSME Targets $6.8Bn in Deals for 2020

Image: DSME

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co (DSME) is targeting deals worth more than $6.88 billion in 2020, said a report by Yonhap.DSME received an additional order of six container vessels worth 891.8 billion won (US$768 million) from an African client on Dec. 27. DSME will deliver the vessels to their owner by the end of October 2022.The world's second-largest shipbuilder by order backlog won orders worth $6.88 billion to build 39 vessels, achieving 82 percent of its annual order target of $8.37 billion in 2019.The 39 ships includes 10 LNG carriers…

02 Jan 2020

Euronav Sells, Leaseback 3 VLCCs

Image: Euronav

Belgium-based crude oil tanker company Euronav has entered into a sale and leaseback agreement for three very large crude carriers (VLCC) vessels with Taiping & Sinopec Financial Leasing Ltd Co.The vessels were sold for a net en-bloc purchase price of USD 126 million. Under the agreement, Euronav will subsequently enter into a 54-month bareboat charter contract.The three VLCCs are the Nautica (2008 – 307,284), Nectar (2008 – 307,284) and Noble (2008 – 307,284), which were all…

31 Dec 2019

Brazilian Beaches Hit by Second Oil Spill

© Arun Roisri / Adobe Stock

Crude oil smudges have been spotted at some Brazilian beaches in the northeast state of Ceará, the country's navy said on Monday, almost two months after the area was hit by another oil slick.That was part of a broader spill, whose origin remains a mystery, that stained hundreds of beaches on Brazil's northeast coast between September and November, threatening marine life, tourism and fishing.The navy said samples of the new spill were being sent for analysis to a marine studies institute…

30 Dec 2019

DSME Wins $771M Order for 6 Box Ships

Image: Daewoo Shipbuilding & Marine Engineering Co., Ltd.

South Korean shipbuilding and offshore contractor Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) has secured a 891.8 billion-won (US$771 million) order to build six container ships.According to Yonhap, the world’s second-largest shipbuilder by order backlog will deliver the ships to an unidentified client in Africa by October 2022 under the deal.With the latest deal, Daewoo Shipbuilding has won orders worth $6.88 billion for 39 vessels so far this year, achieving 82 percent of its annual order target of $8.37 billion.The 39 vessels include 10 LNG carriers…

30 Dec 2019

OSG Acquires Alaska Tanker

Image: Overseas Shipholding Group

Overseas Shipholding Group, the tanker company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets, has entered into agreements with BP Oil Shipping Company USA and BP AMI Leasing to purchase the crude oil carrier vessels operated by Alaska Tanker Company (ATC).OSG currently owns a 37.5% interest in ATC. As part of the above transaction, OSG will acquire the remaining 62.5% interest of ATC that it does not own.According to the publicly traded tanker company…

27 Dec 2019

Japan Sending Warship, Aircraft to Middle East

File Image: A Japanese naval asset. CREDIT: AdobeStock / © JP Aaron

Japan will send a warship and patrol planes to protect Japanese ships in the Middle East as the situation in the region, from which it sources nearly 90% of its crude oil imports, remains volatile, Japan's top government spokesman said on Friday.Under the plan approved by Prime Minister Shinzo Abe's cabinet, a helicopter-equipped destroyer and two P-3C patrol planes will be dispatched for information-gathering aimed at ensuring safe passage for Japanese vessels through the region.If there are any emergencies…

27 Dec 2019

Russia, China, Iran start IO Naval Drills

A russian naval vessel underway at sea (© AdobeStock)

Iran, China and Russia began joint naval drills on Friday in the Indian Ocean and Gulf of Oman, in what Moscow said was an unprecedented exercise in naval cooperation and training.Waters around Iran have become a focus for international tensions, with the United States exerting pressure for Iranian crude oil sales and other trade ties to be cut off."The message of this exercise is peace, friendship and lasting security through cooperation and unity... and its result will be to show that Iran cannot be isolated…

23 Dec 2019

Top Ships Secures Loan for 2 MR Newbuilds

Image: TOP Ships

TOP Ships has entered into an agreement with a major Chinese financier in relation to financing of up to $60.2 million for its recently acquired vessels.The Greece-based shipping company said that the two newbuilding ultra-high specification scrubber-fitted 50,000 dwt Medium Range (MR) product/chemical tankers currently under construction at Hyundai Mipo Co., Ltd. in South Korea.The delivery is due in February 2020, said the international owner and operator of modern, fuel-efficient…

19 Dec 2019

US Renews Waiver on COSCO's Dalian Tanker Unit

© Vladimir Serebrianskiy / Adobe Stock

The Trump administration on Thursday renewed a waiver for companies to wind down transactions with the Dalian unit of a Chinese tanker company on which it had imposed sanctions in September for allegedly transporting Iranian oil.The waiver, good until Feb. 4, 2020, allows activities and transactions "ordinarily incident and necessary to the maintenance or wind down of transactions" including offloading of non-Iranian crude oil involving COSCO's Dalian Shipping Tanker Co, the U.S.

18 Dec 2019

BIMCO: Supply & Demand Trending Off-Balance

Source: BIMCO, Clarksons, IMF

One of the most worrying trends that has developed recently - which will affect shipping demand in the years to come - is the falling trade-to-GDP ratio. The falling ratio can be explained by slowing globaliztation as well as increasing protectionist measures being implemented around the world, spear headed by the US. The raised barriers to trade are here to stay as we enter a new decade, with the shipping industry stuck with the consequences.The trade war is the clearest example of these extra barriers to trade…

13 Dec 2019

GoM: Total Begins Two Deepwater Projects

Map: Total

Total S.A announced the final investment decision (FID) to develop the Anchor oil field located in the deepwater U.S. Gulf of Mexico (GoM), off the coast of Louisiana.Additionally, front-end engineering and design (FEED) has begun for the North Platte discovery in the deepwater GoM.Total holds a working interest of 37.14% in Anchor, alongside operator Chevron (62.86%).The Anchor field will be developed with seven subsea wells connected to a semi-submersible floating production unit (FPU) with a capacity of 75,000 barrels of crude oil and 28 million cubic feet of gas per day.

12 Dec 2019

U.S., China Reach Trade Deal 'in principle'

AdobeStock / © rawf8

The White House has reached a "deal in principle" with Beijing to resolve the 17-month U.S.-China trade war, according to a source briefed on the trade talks.The White House was expected to make an announcement later on Thursday, the source said."The written agreement is still being formulated, but they have reached an agreement in principle," the source said. No details were immediately available.In an attempt to secure a "phase one" trade deal, U.S. negotiators offered to cut…

10 Dec 2019

WFW Advises Ridgebury, Tufton on Suezmax Acquisition

Image: Watson Farley & Williams

Watson Farley & Williams, international law firm based in London, advised Ridgebury Tankers and Tufton Oceanic on the acquisition of two Suezmax tankers in a 50%-50% joint venture with Euronav NV who also provided secured debt to the joint venture companies for the purposes of the acquisitions.Last month, Belgium's tanker shipping company Euronav has acquired two Suezmax tankers through a joint venture formed with affiliates of Ridgebury Tankers and clients of Tufton Oceanic.The  two Suezmax tankers fetch a combined consideration of US$40.6m.

09 Dec 2019

Enbridge, Enterprise to Develop GoM Crude Export Terminal

© artitcom / Adobe Stock

Enbridge Inc and Enterprise Products Partners LP on Monday signed an agreement to jointly develop a deepwater offshore crude oil export terminal in the Gulf of Mexico capable of loading Very Large Crude Carriers.Both pipeline operators will work to finalize an equity participation agreement that would provide Enbridge an option to purchase ownership interest in Enterprise's Sea Port Oil Terminal (SPOT), subject to SPOT receiving a deep-water port license, Enbridge said in a statement.The companies would first jointly develop the SPOT project…

05 Dec 2019

CME Adds Two Delivery Points to WTI Houston

Photo: CME Group

CME Group on Thursday said it would add two more delivery points for its WTI Houston crude futures contract, pending regulatory review, as it seeks to provide customers with additional options to hedge physical price risk.* Beginning with the March 2020 contract, customers can take delivery of U.S.

05 Dec 2019

Pirates Kidnap 19 Crew from Tanker off Nigeria

© Christin Boggs Peyper / Adobe Stock

Pirates have kidnapped 19 crew members from a crude oil tanker off Nigeria in an area where acts of piracy are on the rise, an official with the ship's operator said on Thursday.The loaded vessel, the Nave Constellation, was attacked 77 nautical miles off Bonny Island on Tuesday and 18 Indians and one Turk from the crew were seized, the official said.Seven other crew members remain on board the vessel. Neither the vessel nor the cargo were damaged, the official said.The shipping…

02 Dec 2019

Asian Refiners Strive to Finish IMO Preparations

© vladsv / Adobe Stock

At SK Energy's largest refinery in South Korea, engineers are rushing to complete a new processing unit ahead of schedule as the firm looks to boost sales of low-emission fuels before new marine fuel standards take effect in just one month.In Japan, the country's second-biggest refiner Idemitsu Kosan Co is taking a more cautious stance, increasing capacity for low sulphur fuel oil (LSFO), but also relying on blending to produce IMO 2020 compliant bunker fuel.The different approaches…

27 Nov 2019

Masirah Contracts Wings Offshore for FSO

Image: Ministry of Technology and Communications, Oman

Masirah Oil, an exploration and production company operating Block 50 offshore Oman, has awarded a contract to Wings Offshore for a floating storage and offloading (FSO) vessel, which will be used on a field located offshore Oman.Masirah said it had awarded the FSO contract to Wings Offshore for the Mt Bull Papua, which is an Aframax tanker with a storage capacity of 750,000 barrels.The FSO will be used to store crude oil that will be produced during the early appraisal phase of the Yumna field in Block 50 Oman.Drilling of the Yumna 1 appraisal well is planned to start in December 2019…

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