Devika Krishna Kumar News

24 Jul 2020

US Oil Exports to Europe Rebound

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The United States has increased oil supply to Europe in July for the first month since May, making up for output cuts from OPEC+ members, according to traders and Refinitiv Eikon data.U.S. crude supply to Europe reached nearly 31 million barrels in July, according to Refinitiv Eikon data as of July 24. With crude prices back above $40 a barrel, U.S. producers have rushed to claim market share while the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is still cutting supply drastically.U.S.

10 Jun 2020

Oil Tankers Turn Away From Venezuela as More Sanctions Loom

© Hannes van Rjin / MarineTraffic.com

Oil tankers that were sailing toward Venezuela have turned around and others have left the country’s waters as the United States considers blacklisting dozens of ships for transporting Venezuelan oil, according to shipping data and industry sources.The threat of tighter sanctions is already disrupting the global shipping market. Chinese oil firms are considering whether to decline to charter any tanker that has visited Venezuela in the past year, no matter where the ship is now or for what voyage…

10 Jun 2020

Enterprise Working to Address Delays with SPOT Offshore Terminal

Enterprise Products Partners LP is working with U.S. officials to advance an offshore crude terminal project after the review schedule was suspended last week, the company said.Enterprise and Enbridge Inc agreed late last year to jointly develop a U.S. Gulf Coast crude export terminal known as Sea Port Oil Terminal (SPOT) that would load supertankers off Freeport, Texas.The application review schedule was suspended after SPOT Terminal Services LLC said it needed additional time to fully respond to information requests, according to a June 4 letter by the United States Coast Guard and Maritime Administration (MARAD).The USCG and MARAD have requested more information such as the project description and a list of landowners that would be affected…

09 Jun 2020

Chinese Firms May Avoid Tankers That Have Carried Venezuelan Oil

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Chinese oil companies may soon decline to charter any tanker that has visited Venezuela in the past year to avoid disruption to operations if the United States blacklists more ships for trading with Caracas, four shipping sources told Reuters on Tuesday.The U.S. government is seeking to choke Venezuelan oil exports to starve the government of socialist President Nicolas Maduro of its main source of revenue. Existing sanctions have cut Venezuelan exports sharply, but Maduro has held on.Washington may tighten sanctions by adding dozens more tankers to an existing blacklist, U.S.

07 Jun 2020

US Weighs Blacklisting More Oil Tankers Over Venezuela

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The United States is considering imposing sanctions on dozens of additional foreign oil tankers for trading with Venezuela, U.S. officials told Reuters on Friday, the latest effort to sever what Washington sees as a lifeline for President Nicolas Maduro.Some sanctions could be announced in the near term while others could be imposed over a longer period if the trading activity persists in violation of U.S. restrictions, one of the officials said on condition of anonymity.Earlier on Friday…

29 May 2020

Flurry of US Crude Export Fixtures Offers Slimmer of Hope

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A flurry of tentative bookings to export U.S. crude oil from the Gulf Coast suggests demand is edging up after the coronavirus slammed energy consumption worldwide.BP, Trafigura and Equinor have all tentatively fixed vessels this past week to carry U.S. crude to global destinations over the coming month, according to Refinitiv Eikon data and shipping sources.Commodities merchant Trafigura and Occidental Petroleum are among companies looking to book vessels to ship crude from the U.S. Gulf Coast to Asia, one shipbroker said. The U.S.

27 Apr 2020

Jones Act Tankers Booked for Storage, Foreign Trips Amid Oil Glut

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Oil traders are hiring expensive U.S. vessels, normally only used for domestic shipments, to store gasoline or ship fuel overseas, five shipping sources said, in a sign of the energy industry's desperation for places to park petroleum amid a 30% drop in worldwide demand.Billions of people worldwide are living under confinement rules due to the coronavirus pandemic, destroying demand for gasoline and other fuels and creating a supply glut. Storage tanks onshore and floating storage in tankers on the water are rapidly filling…

21 Apr 2020

US Crude Futures Plunge to Lowest on Record

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U.S. crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil.Brent crude, the international benchmark, also slumped, but that contract was nowhere near as weak because more storage is available worldwide.While U.S. oil prices are trading in negative territory for the first time ever, it is unclear whether that will trickle down to consumers…

14 Apr 2020

Enterprise Offers Crude Shipments From Gulf Coast to Cushing

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Enterprise Products Partners LP said it would offer spot shipments of crude on an existing pipeline from the U.S. Gulf coast to Cushing, Oklahoma, the delivery point for benchmark U.S. crude futures, as demand to store oil inland surges.The move marks a sharp reversal from recent pipeline projects that were all built connecting inland markets to the Gulf Coast as U.S. crude exports climbed to record highs after Washington lifted a ban in late 2015.However, the coronavirus pandemic has crushed global oil demand and dented U.S.

03 Apr 2020

Oil Posts Biggest One-day Gain After Trump Touts Saudi-Russia Deal

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Crude prices posted their biggest-one day gains on record on Thursday after President Donald Trump said he expects Russia and Saudi Arabia to announce a major oil production cut, and Saudi state media said the kingdom was calling an emergency meeting of producers to deal with the market turmoil.Trump said he had spoken to Saudi Crown Prince Mohammed bin Salman, and expects Saudi Arabia and Russia to cut oil output by as much as 10 million to 15 million barrels, as the two countries signaled willingness to make a deal.Trump did not specify barrels per day (bpd)…

14 Feb 2020

Coronavirus Leaves China-bound Tankers Stranded

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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…

13 Feb 2020

Oil Prices Climb on Hopes of Deeper OPEC+ Production Cuts

AdobeStock_45230 / Adobe Stock

Oil prices edged higher on Thursday as investors focused on the possibility of deeper supply cuts from the world's biggest producers, whilst largely shrugging off reports which cut demand forecasts after the coronavirus outbreak in China, the biggest oil importer.Brent crude was up 32 cents, or 0.6%, at $56.11 a barrel by 10:52 a.m. ET (1552 GMT), while U.S. West Texas Intermediate (WTI) was up 14 cents at $51.31 a barrel.The energy complex was led higher by U.S. gasoline futures…

17 Sep 2019

China's Unipec Ramps Up U.S. Crude Shipments

Unipec, the trading arm of Asia's top refiner Sinopec, chartered at least four crude tankers this week from the United States, ramping up purchases after attacks on Saudi Arabia's oil facilities and as trade tensions between the world's two largest economies cool, sources said.Three Aframax vessels that can carry about 750,000 barrels, and one supertanker that can carry about 2 million barrels of crude, have been fixed by Unipec tentatively, according to a shipping source and Refinitiv Eikon data.The attack on Saudi oil facilities Saturday knocked out half of Saudi Arabia's oil production, or 5% of global output, sending prices soaring when trading resumed on Monday. (Reporting by Devika Krishna Kumar in New York Editing by Chizu Nomiyama)

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.

07 Oct 2019

Occidental Tentatively Fixes VLCC for Record $13.25 mln to Asia

File Image: the M/V Maran Andromeda (Credit: MarineTraffic.com / © Ken Scott)

Occidental Petroleum Corp provisionally chartered a supertanker to ship U.S. crude to South Korea for a new record of $13.25 million in November, three shipping sources familiar with the matter said on Monday.The Very Large Crude Carrier (VLCC) Maran Andromeda was chartered by Occidental on Friday for an estimated Nov. 20 departure, according to one shipbroker and Refinitiv Eikon shipping data.Global shipping rates, and in particular U.S. Gulf Coast to Asia <TD-LPP-SIN>, have skyrocketed after the United States in late September imposed sanctions on two units of China's COSCO…

15 Jan 2020

Corpus Christi Crude Exports Boom

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U.S. crude exports from Corpus Christi, Texas, have surged to a record in recent weeks, often surpassing hubs such as Houston and Beaumont, Texas, thanks to faster-than-expected infrastructure additions.The infrastructure boom at Corpus Christi helped push crude exports there to a weekly record of 1.59 million barrels per day (bpd) in late December, more than doubling levels that held for the first eight months of last year, and above Houston's 2019 peak of 1.36 million bpd, according to vessel-tracking firm ClipperData.The heavy flows suggest that fears of a bottleneck that would impede U.S.

14 Aug 2019

ICE, Magellan to Offer Dock Capacity to Houston Oil Futures Customers

Intercontinental Exchange Inc and Magellan Midstream Partners LP said on Wednesday they would auction dock capacity at Magellan's terminals in Galena Park and Seabrook, Texas, for holders of ICE's Permian West Texas Intermediate (WTI) crude futures contracts.The monthly auction process will allow customers who purchase an ICE Permian WTI crude futures contract, deliverable at Magellan's East Houston terminal (MEH), the option to load crude directly onto a vessel at Galena Park and Seabrook dock facilities for export, the companies said.The capacity offered will be adequate to fill Panamax and Aframax size vessels, with Suezmax size vessels set to be added in the future.Earlier this year…

07 Nov 2019

Energy Transfer: VLCC Offshore Port to be Ready Early 2023

AdobeStock / © Jose Gill

Energy Transfer LP said on Thursday discussions with potential shippers to build an offshore crude export facility in Texas capable of handling supertankers were progressing on schedule, with the project expected to be in service by late 2022 or early 2023.The company has also made advances on the regulatory and permitting process for the project, Marshall McCrea, Energy Transfer's chief commercial officer, said on the company's quarterly earnings call.Plans call for the facility to be connected to Energy Transfer's Nederland…

26 Dec 2019

Aframax Tanker Booked at Record US-Europe Rate

© Hannes van Rijn / MarineTraffic.com

PetroChina has provisionally chartered an Aframax tanker at a record U.S.-Europe freight rate, two shipbrokers said on Tuesday, reflecting strong demand for low-sulfur U.S. crude.The Chinese oil firm tentatively chartered the Aframax-class Seamagic for 300 worldscale points, loading in the U.S. Gulf Coast. The vessel currently is moored near Pascagoula, Mississippi, according to Refinitiv Eikon data.The rate translates to about $100,000 per day, one of the shipbrokers said, surpassing the previous peak of 245 worldscale points, or about $60,700 per day, last week.

08 Aug 2019

Energy Transfer in talks to build U.S. Gulf Coast Supertanker Crude Export Facility

Energy Transfer LP said on Thursday it was in discussions to build an export facility in Texas capable of handling supertankers with the capacity to transport about 2 million barrels of crude.The facility would be connected to its Nederland, Texas, crude terminal, and a final investment decision has not yet been made, Chief Financial Officer Thomas Long said during a quarterly earnings call for the company.It was not immediately clear who Energy Transfer was in discussions with.U.S. midstream companies have raced to add export terminals capable of handling Very Large Crude Carriers (VLCCs) along the Gulf Coast as exports have surged to records after Washington lifted a ban in late 2015.Energy Transfer said it expects to take at least 2 or 3 years to bring the VLCC project into service.

09 Aug 2019

China Fixes First U.S. Crude Cargo Since Latest Tariff Threat

File Image: A VLCC loads alongside in the port of Corpus Christi, Texas (CREDIT: Port of Corpus Christi, Texas)

Chinese oil trader Unipec chartered a supertanker to ship U.S. crude to China in September, trading sources said, the first such cargo since U.S. President Donald Trump announced additional tariffs on Chinese import, ending a monthlong trade truce.Unipec, the trading arm of state refiner Sinopec , has fixed the Very Large Crude Carrier (VLCC) Anne to load U.S. crude in mid-September, according to a shipbroker and Refinitiv Eikon data. VLCCs are capable of transporting about 2 million barrels of crude.Unipec has three other vessels…

08 Oct 2019

Oxy Books Supertanker for a Record $13.25 Mln

© Ken Scott / MarineTraffic.com

Occidental Petroleum Corp provisionally chartered a supertanker to ship U.S. crude to South Korea for a new record of $13.25 million in November, three shipping sources familiar with the matter said on Monday.The Very Large Crude Carrier (VLCC) Maran Andromeda was chartered by Occidental on Friday for an estimated November 20 departure, according to one shipbroker and Refinitiv Eikon shipping data.Global shipping rates, and in particular U.S. Gulf Coast to Asia, have skyrocketed after the United States in late September imposed sanctions on two units of China's COSCO…

04 Oct 2019

VLCC Rates Surge as U.S. Sanctions COSCO

File Image: AdobeStock / © Carabay

Freight rates to ship U.S. crude to Asia continued to surge, with costs to charter a supertanker rising to a record $12 million on Thursday, shipping sources familiar with the matter said.South Korea's top refiner, SK Energy, tentatively chartered the supertanker Maxim to ship U.S. crude to South Korea in November for a record $10 million earlier in the week but that fixture has since failed, the sources said.The company now has conditionally booked the Pacific M at a new record of $12.35 million…

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