Oil Prices News

14 Jun 2019

Ship Insurance Costs Soar After Tanker Attacks

© Nightman1965/ Adobe Stock

Insurance costs for ships sailing through the Middle East have increased by at least 10% after attacks on two tankers in the Gulf of Oman on Thursday, with the potential for costs to rise further as regional tensions escalate, ship insurers said.The attacks have already stoked concerns about reduced flows of crude oil on one of the world's key shipping routes, pushing up oil prices by as much as 4.5%.Some tanker companies have already suspended new bookings to the Middle East…

14 Jun 2019

Boskalis to Salvage Gulf of Oman Tankers

(Photo: Boskalis)

Dutch marine engineer Boskalis said on Friday it had has been appointed to salvage both tankers that were hit in the Gulf of Oman in a suspected attack.Boskalis said the condition of the Front Altair tanker, carrying a cargo of naphtha, was still worrying, although the fire on the ship had been extinguished on Thursday.The methanol-carrying Kokuka Courageous was in a stable condition, Boskalis said. Its crew had been able to return to the vessel, which was being towed to a port…

14 Jun 2019

US Leads World Oil Reserves

Graph: Rystad Energy

The United States has a world-leading 293 billion barrels of recoverable oil resources, which is 20Bbbl more than Saudi Arabia and 100Bbbl more than Russia, with the Permian Basin leading that charge.Rystad Energy’s estimate of US recoverable oil is also five times more than officially reported proven reserves as published in the BP Statistical Review of World Energy 2019.Tight oil plays in the Permian Basin in Texas and New Mexico now hold 100 billion barrels of recoverable oil resources, according to Rystad Energy’s analysis.

14 Jun 2019

Oil Prices Jump 2% After Tanker Attacks

(Photo: Islamic Republic News Agency)

Oil prices settled 2.2% higher on Thursday after attacks on two oil tankers in the Gulf of Oman stoked concerns of reduced crude trade flows through one of the world's key shipping routes.The attacks near Iran and the Strait of Hormuz reignited worries about an impact to flows from the Middle East if insurance companies begin to reduce coverage for voyages through the region and additional shipping companies suspend new bookings, analysts said.Such a disruption "could further exacerbate the supply problem…

13 Jun 2019

Two Tankers Attacked in Gulf of Oman

(Photo:  Islamic Republic News Agency)

Two oil tankers were attacked in the Gulf of Oman on Thursday, leaving one ablaze and both adrift, shipping firms said, driving oil prices as much as 4% higher over worries about Middle East supplies.The Front Altair, carrying petrochemical feedstock, was on fire in waters between Gulf Arab states and Iran after an explosion that a source blamed on a magnetic mine. The Norwegian owner said its crew were safe.A second Japanese-owned tanker was abandoned after being hit by a suspected torpedo, the firm that chartered the ship said.

12 Jun 2019

Offshore: New Project Pace Quickens

As the oil and gas industry comes out of the recent downturn, E&P companies are tempted to chase the rewards of higher oil prices by accelerating the sanctioning of new projects.However, haste can lead to less certainty of what the ultimate cost of any given project will be. Projects with high levels of so-called engineering definition are generally expected to remain within about 20% of the initial cost estimates, according to Rystad Energy.“For offshore operators, that means…

07 Jun 2019

US Oil Output Heads for More Records in 2019

Graph: Rystad Energy

U.S. total oil production, which is already off to an amazing start in 2019,  is on track to set another record for this year.New records are expected both when the final numbers for May emerge and at the end of the year, said Rystad Energy.The energy research and business intelligence company is raising its forecast for US crude output to 13.4 million barrels per day (bpd) by December 2019. For May 2019, our research and calculations point to crude oil production averaging 12.5 million bpd. Both are new all-time highs.“Our US supply projections have been revised up yet again.

30 May 2019

Only 10% of Shale Firms Reports Positive Cash Flow

Graph: Rystad Energy

Only four, out of the financial performance of 40 dedicated US shale oil firms under study, reported a positive cash flow balance in the first quarter of 2019, bringing down the share of companies with a positive cash flow balance from the recent norm of around 20% to just 10%.Nine in ten US shale oil companies are burning cash, according to Rystad Energy.Total cash flow from operating activities (CFO) fell from $14 billion in the fourth quarter of 2018 to $9.9 billion in the first quarter of 2019.“That is the lowest CFO we have seen since the fourth quarter of 2017…

23 May 2019

Heerema Unveils World's Largest Offshore Crane Vessel

(Photo: Heerema Marine Contractors)

Dutch firm Heerema Marine Contractors and Singapore's Sembcorp Marine, on Thursday, showed off the world's largest crane vessel that can be used for the setup and decommissioning of offshore oil and gas facilities.The semi-submersible vessel, which cost Heerema about $1.5 billion, is equipped with two cranes that can reach a height of 220 metres, taller than the top of Singapore's iconic boat-shaped Marina Bay Sands hotel. The cranes have a combined lifting capacity of 20,000 tonnes…

14 May 2019

U.S. Urges Response "short of war" to Tanker Attack

The U.S. ambassador to Saudi Arabia said Washington should take what he called "reasonable responses short of war" after it had determined who was behind attacks on oil tankers off the coast of the United Arab Emirates.Iran was a prime suspect in the sabotage on Sunday although Washington had no conclusive proof, a U.S. official familiar with American intelligence said on Monday. Iran has denied involvement."We need to do a thorough investigation to understand what happened, why it happened, and then come up with reasonable responses short of war," Ambassador John Abizaid told reporters in the Saudi capital Riyadh in remarks published on Tuesday."It's not in (Iran's) interest…

14 May 2019

Oil Price Risks Rise

Image: Saudi Aramco

Supply disruptions in the Middle East on top of an already tight crude market could send oil prices violently upward, said the energy research firm Rystad Energy.Two Saudi Arabian oil tankers were reportedly attacked off the coast of the United Arab Emirates this weekend, sending crude futures up sharply May 13.Bjørnar Tonhaugen, Head of Oil Market Research at Rystad Energy, says: “In the short term, the perceived risk of supply disruptions from the area will only add to the premium of short-dated oil contracts compared to deferred contracts on the futures curve…

13 May 2019

Saudi Tankers Among Those Hit off UAE Coast

The VLCC MJAD, reported by Reuters as one of the vessels attacked. CREDIT: MarineTraffic.com / © piet verspui

Saudi Arabia said on Monday that two of its oil tankers were among those attacked off the coast of the United Arab Emirates and said it was an attempt to undermine the security of crude supplies amid tensions between the United States and Iran.The UAE said on Sunday that four commercial vessels were sabotaged near Fujairah emirate, one of the world's largest bunkering hubs lying just outside the Strait of Hormuz, but did not describe the nature of the attack or say who was behind it.The UAE had not given the nationalities or other details about the ownership of the four vessels.

10 May 2019

Belships Hedges 2020 Fuel Oil Prices

Photo: Belships ASA

Norwegian shipping company Belships has has entered into an agreement to hedge the price differential between compliant 0.5% sulphur fuel oil (VLSFO) and 3.5% sulphur fuel oil (HSFO).The secured exposure is for 24,000 tons of bunkers for the full calendar year 2020. The volume equals the annual fuel consumption of about four vessels. The fixed price differential is USD 198 per ton, with monthly settlements in 2020.The company's trading fleet will be physically ready by January 2020 to comply with the IMO Sulphur Cap 2020…

02 May 2019

Kirby Posts 2019 Q1 Results

David Grzebinski, Kirby’s President and Chief Executive Officer

Kirby Corporation announced net earnings attributable to Kirby for the first quarter ended March 31, 2019 of $44.3 million, or $0.74 per share, compared with earnings of $32.5 million, or $0.54 per share, for the 2018 first quarter. Excluding certain one-time charges, 2018 first quarter net earnings attributable to Kirby were $37.9 million, or $0.63 per share. Consolidated revenues for the 2019 first quarter were $744.6 million compared with $741.7 million reported for the 2018 first quarter.David Grzebinski…

23 Apr 2019

IEA Says Oil Markets Adequately Supplied

Image: IEA/Shutterstock

The International Energy Agency is monitoring developments in global oil markets, and notes that markets are now adequately supplied, and that global spare production capacity remains at comfortable levels.Further tightening of sanctions on Iran will have an impact on its export capacity. Iranian shipments of crude and condensates are running around 1.1 million barrels a day (mb/d) in April, 300 000 barrels a day lower than March, and 1.7 mb/d lower than May 2018.As a result of OPEC’s high compliance rate with the agreed supply cuts in the OPEC+ group…

18 Apr 2019

Damen Reports First Loss in 15 Years

Pic: Damen Shipyards

Netherlands-based shipbuilding giant Dutch Damen Shipyards Group reported a net loss of EUR 17 million (USD 19.1 million) in 2018 - the first time in fifteen years.Damen reports that its financial situation stems from a sustained period of difficulty in a number of maritime sectors and investments it has made in its future.Notably, despite rising oil prices, the offshore hydrocarbon sectors continue to present tough trading conditions. The harbour towage sector, a key market for Damen…

18 Apr 2019

Keppel to Add 1,800 Offshore, Marine Staff

Keppel rig operations (CREDIT: PEMA)

Singapore conglomerate Keppel Corp is planning to add 1,800 staff this year at its offshore and marine business, the first time the company is hiring for the division after cutting thousands of jobs since 2015.The slump in oil prices in 2014 and a global oversupply of drilling rigs had hit orders at the company's O&M division, but demand is slowly returning."With the expected increase in work flow as well as preparing for the upturn we would be looking to add to our (O&M) workforce this year," Keppel CEO Loh Chin Hua said at the company's results briefing.

09 Apr 2019

OSVs: Restarting that Idled Vessel

© Iain Cameron

Owners of offshore support vessels (OSV) are beginning to examine the possibility of reactivating some of their fleet even as the consistent volatility of oil prices and a healthy stream of ships projected from global shipyards keeps their enthusiasm in check.According to Clarksons, demand for the versatile ships, which support offshore exploration and production activities around the world, edged up 3% in 2018, with marginally higher day rates tempting some units out of lay-up.Most of the idle OSV fleet is unlikely to become active this year…

08 Apr 2019

OSV Market: Which Way is Up?

OSV "THUNDER" owned by Jackson Offshore serving floater "DEEPWATER CONQUERER"
Source: Jackson Offshore

Any analysis of markets for offshore service vessels (OSV) usually begins with analogies to rough weather, best of times/worst of times or similar. OSV expert Seabrokers, with a home base in Stavanger, Norway, in the February edition of its Seabreeze market report follows this convention with a description of the “feast or famine” conditions in the North Sea. Recent day rate action highlights the localized nature of markets for anchor handlers (AHT), platform supply vessels (PSVs) and similar equipment…

04 Apr 2019

Rystad Expects Oil Price Rally in H1 of 2020

Graph: Rystad Energy

The energy research and business intelligence company Rystad Energy expects that a short-lived price rally through the first half of 2020 as oil prices approach $70 a barrel.It will then lose momentum and be replaced by a need for additional production cuts by Russia and the cartel of oil producing countries, OPEC, the Norway-headquartered firm said.“We retain our bullish stance for the second half of 2019 and first half of 2020 as we anticipate OPEC+ to extend production cuts through 2019…

29 Mar 2019

COSCO Shipping Flags Risks From Oil Price, Trade Dispute

Photo courtesy of COSCO

China's COSCO Shipping Holdings Co Ltd said trade frictions and high oil prices pose risks for the global shipping industry this year, after confirming on Friday that its net profit for 2018 fell by more than half.The state-owned company, the world's third largest container shipping line, said net profit attributable to shareholders slid 53.8 percent to 1.2 billion yuan ($178.83 million) last year from 2.7 billion yuan a year earlier.It had warned profit would slump in January.Revenue rose 33.6 percent as demand for its container shipping and terminal business remained strong, COSCO said.

08 Mar 2019

US to Overtake Saudi in Oil Exports

Graph: Rystad Energy

United States will soon export more oil and liquids than Saudi Arabia, thanks to the continued rise in oil production from US shale plays and the increased oil export capacity from the Gulf Coast.According to Rystad Energy, energy research and business intelligence company, it is a a pivotal geopolitical shift. The US has for decades relied on large-scale imports to satisfy its thirst for oil, but this is about to change.The Energy Information Administration (EIA) reported last week that the United States exported more crude and petroleum products than it imported.

01 Mar 2019

CMA CGM Books Rrecord Revenue

(Photo: Eric Haun)

French container shipping group CMA CGM booked record revenue in 2018 as trans-Pacific goods traffic remained buoyant despite U.S.-Chinese trade tensions, but soaring oil prices cut deep into its profits, it said on Friday.The firm's 2018 volumes rose by 9.3 percent and for the first time exceeded 20 million TEUs (Twenty-foot Equivalent Units) due to a strong performance of most of the shipping lines operated by the group, in particular the Transpacific, India/Oceania and Africa lines.Full-year revenue grew 11.2 percent to a record $23.48 billion…

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