Oil Prices News

08 Dec 2019

Offshore: OSV Market Report

Photo courtesy Ulstein Group/Marius Beck Dahle

The environment in oil patches onshore and offshore alike has been challenging throughout 2019; worries about an economic slowdown – whether cyclical or induced by a trade war – have weighed heavily on oil prices, even in the face of reduced production by the big producers. Though storm clouds persist, there appears a clearing on the horizon.The fate of Offshore Service Vessels (OSVs) is, naturally, closely tied to the price of oil. Seacor Marine’s John Gellert, in reviewing its Q2 results, said: “Activity levels in the U.S.

24 Nov 2019

EIA, IEA Grossly Overestimating US Shale: ESAI

 Pic: ESAI Energy

ESAI Energy, an oil & energy data provider, believes both the US Energy Information Administration (EIA) and the International Energy Agency (IEA) are overly optimistic in their November projections of US crude oil production in 2020, according to the company’s latest North America Watch.ESAI Energy sees a deceleration in growth to about 650,000 b/d next year, in contrast to the EIA and IEA forecasts of 1.0 million b/d and 900,000 b/d, respectively.ESAI points to declining capital expenditures by many shale producers in response to investor pressure to spend within cash flow…

11 Nov 2019

Asian LPG Market to Cross $109Bln by 2024

Pic: Indian Oil Corporation Ltd

The Asian liquefied petroleum gas (LPG) market stood at over $81.4 billion in 2018 and is projected to grow at a CAGR of over 5% to cross $109 billion by 2024, as increasing demand for LPG  as a fuel for power generation in remote and off-grid locations in comparison to its less environment-friendly alternatives like coal, diesel and fuel oil.Increasing demand for LPG used to run vehicles (Autogas)  is being witnessed as it is a comparatively cheaper automotive fuel and can be used in vast applications related to transportation…

11 Nov 2019

Bourbon Commits 100+ Vessels to Fleet Xpress

(Photo: Bourbon)

Marine services firm Bourbon has signed a contract committing more than 100 offshore support vessels (OSVs) to Inmarsat’s Fleet Xpress, the maritime broadband service that combines the speed of Ka-band with continuous back up from Inmarsat’s FleetBroadband operating on L-band.The deal represents a breakthrough offshore contract for Fleet Xpress, which is already installed on some 7,000 vessels - mainly seagoing merchant ships, the company said.“This contract is substantial in…

08 Nov 2019

U.S. Scoops up Overseas Fuel Oil in pre-IMO Push

file Image / AdobeStock / © mikes jc

The United States is taking advantage of record-low prices of one of the world's dirtiest fuels by buying record volumes, which it intends to upgrade into cleaner products before new shipping rules take effect, trading and analyst sources say.U.S. trade sources said it recently had become economical to ship fuel oil from countries such as Russia, boosting imports of the product into the United States.This comes even as prices for high-sulphur fuel oil (HSFO) on the U.S. Gulf Coast…

31 Oct 2019

Vessel Op Costs to Rise in 2019 and 2020

Richard Greiner, Partner, Shipping & Transport at BDO, said: “The predicted 2.5% and 2.7% increases in operating costs for 2019 and 2020 respectively compare to an average fall in actual operating costs in 2018 of 1.8% across all main ship types recorded in the recent BDO OpCost study."  (Photo: BDO)

International accountant and shipping adviser BDO said total operating costs in the shipping industry are expected to rise by 2.5% in 2019 and by 2.7% in 2020.Responses to the firm’s latest annual Future Operating Costs Survey revealed that insurance is the cost category likely to increase most significantly in both 2019 and 2020. In the case of protection and indemnity insurance, the predicted increase is 2.0% for each of the years under review, while hull and machinery insurance…

31 Oct 2019

E&P Companies Struggle on RoI

Graph: Rystad Energy

International  exploration & production (E&P) are struggling to make money from offshore investments made during the latest investment upturn, according to a new study by Rystad Energy.Rystad Energy has evaluated all offshore oil fields sanctioned since 2010 and ranked them by estimated value per barrel of oil (boe) under various oil price scenarios. The return on investment (RoI) figures were not up to the mark.The sanctioning activity was record-high during the strong investment cycle from 2010 to 2014…

23 Oct 2019

Oil Stockpiling Builds Ahead of IMO 2020 Rules

EXXON's Rotterdam Refinery (CREDIT: EXXON)

S-Oil, South Korea's third-largest refiner, said on Wednesday that regional refining margins are expected to improve in the fourth quarter on the back of inventory build-up ahead of implementation of stricter rules on marine fuels in 2020.The refiner, whose top shareholder is Saudi Aramco, said in an earnings statement, strong demand for heating oil was also expected to support refining margins, along with the International Maritime Organization (IMO)'s stricter shipping fuel…

22 Oct 2019

ORCA Hub Readies Drones for Offshore Energy

 Image: Heriot-Watt University

A consortium of five universities, including Heriot-Watt University, working with 35 industrial and innovation partners, has unveiled the latest results from its research collaboration.The largest academic center in the world for research into robotics technology for offshore energy infrastructure, the ORCA Hub’s aim is to advance robotics and Artificial Intelligence technologies for the inspection, repair, maintenance and certification of offshore energy platforms and assets.Creating solutions to some of the most challenging…

21 Oct 2019

Temasek Bids $3 Bln for Control of Keppel

(File photo: Keppel Offshore & Marine)

Singapore state investor Temasek Holdings is offering to buy control of conglomerate Keppel Corp in a S$4.1 billion ($3 billion) deal that could hasten a consolidation in the rig building sector which is battling the effects of low oil prices.The announcement, which confirmed what two sources with knowledge of the matter told Reuters earlier on Monday, boosted shares in rig builder Sembcorp Marine by 12% on expectations of a likely shake-up in the industry. Shares in Sembcorp's parent Sembcorp Industries rose 10%.Keppel's offshore and marine unit…

18 Oct 2019

W. Africa Crude-Freight costs ease, especially for VLCCs

File Image (CREDIT: K LIne)

Freight rates eased further on Friday, especially for the largest oil tankers, promising some recovery for West African oil prices which had touched multi-year lows. VLCC freight costs eased more rapidly than smaller Suezmaxes, making it less advantageous to ship on the latter. Prices for Suezmaxes were estimated around world scale 190-200, with one European buyer estimating further relief to around 150 by the end of next week.Nigeria's NNPC cut its November official selling price for Bonny Light crude to dated Brent plus 58 cents per barrel and for Qua Iboe to plus 63 cents per barrel…

11 Oct 2019

Iranian Tanker Hit by Missiles, Oil Rises

© PhotoGranary/AdobeStock

Oil prices jumped more than 2% on Friday, October 11, 2019, after Iranian media said a state-owned oil tanker had been struck by missiles in the Red Sea near Saudi Arabia, raising the prospect of supply disruptions weeks after attacks on Saudi oil plants.The Suezmax crude tanker Sabiti was ablaze and suffered heavy damage after being hit by two missiles, Iranian media reported.Both oil benchmarks recorded their biggest daily rise since Sept. 16, the first trading day after the…

07 Oct 2019

Drewry Cuts Global Port Throughput Forecast

Image: Drewry Shipping Consultants Limited.

Drewry Shipping Consultants has revealed that it now expects global port throughput to rise by 2.6% in 2019, down from the previous 3.0% expectation.The mood-music surrounding the container market has deteriorated further in the last three months, resulting in Drewry downgrading its outlook for world container port throughput for the current year and the rest of the five-year horizon in the Container Market Annual Review and Forecast.The weight of risks pressing down on the container market seems to be getting heavier by the day…

24 Sep 2019

Equinor to be ‘Offshore Wind Major’

Graph: Rystad Energy

The multi-billion capital investment by Equinor at its new Dogger Bank Offshore Wind Farm will see it rival its major oil and gas projects, according to Rystad Energy."The offshore wind project Dogger Bank in the UK North Sea will not only be Equinor’s largest project through 2026, it will also rank as the sixth largest offshore development project in the world during this period," said the energy research firm.UK authorities announced on Friday that Equinor and joint venture partner SSE have been chosen to develop the world’s largest offshore wind farm…

17 Sep 2019

Middle East Risks Keep Oil Prices High

Oil prices have risen massively following the recent attacks on Saudi oil refining facilities – the US has responded by authorizing the release, if necessary, of emergency crude oil stocks to ease price pressures. (Photo © Adobe Stock / Douglas Knight)

Oil lost some of its big price rises today as the US announced the possible release of crude reserves but the possibility of military action in response to the drone attacks on Saudi oil facilities still means prices are high and that stocks are under pressure. Equity market losses have not been large but investors are continuing to support ‘safer’ assets such as gold, for which treasury prices are rising.Brent crude prices fell 1.78% to $67.79 per barrel in Asia today (Tuesday, September 17) after a big increase yesterday of 14.6%, the biggest one-day percentage gain since at least 1988. U.S.

16 Sep 2019

Oil Price Spike after Saudi Attack Temporary

Graph: Rystad Energy

The drone attack on the world’s largest oil processing facility, Abqaiq in the heart of Saudi Arabia’s oil industry, forced Saudi Aramco to shut in 5.7 million barrels per day (bpd) of crude production, which equates to 7% of the current global crude and condensate production.Rystad Energy says that oil price spike will be short-lived. Bjørnar Tonhaugen, head of oil market research at Rystad Energy said: “The bullish reaction in oil prices will likely be limited by Saudi Arabia’s vast quantities of crude in storage…

12 Sep 2019

OFS Sector Expected to Take a Hit

Graph: Rystad Energy

Lower oil prices will push the global oilfield services (OFS) sector into a recession in 2020 after three successive years of growth, according to Rystad Energy.In a new sector outlook update, Audun Martinsen, head of oilfield services research at Rystad Energy, forecasts a 4% decline in global oilfield service revenue if oil prices stay flat next year.“Lower oil prices call for negative growth in the service market in 2020,” says Martinsen. “For suppliers, this means that a three…

02 Sep 2019

Marine Diesel Engine Market to Grow 3.9%

Image: MAN Energy Solutions

The global marine diesel engine market is estimated to grow at CAGR above 3.9% over the forecast time frame and reach the market value around US$ 8.1 billion by 2026.The worldwide market for marine diesel engines has expanded mainly as shipping industry needs to decrease carbon emissions, said Acumen Research and Consulting.The shipping industry focuses on developing higher-efficient diesel engines that use less diesel while offering more ship propulsion. However, the latest shipping and shipbuilding downturn has impaired the market.Shipbuilding orders decreased with lower shipping prices.

21 Aug 2019

Gulf Marine CEO Quits in wake of Profit Warning

A Gulf Marine Services Jack Up unit (CREDIT: GMS)

Gulf Marine Services said on Wednesday Chief Executive Officer Duncan Anderson has resigned as the oilfield industry contractor warned a reassessment of its ships and contracts showed profit would fall this year, kicking its shares 12% down.The Abu Dhabi-based offshore services specialist said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core earnings of between $45 million and $48 million…

15 Aug 2019

Saudi Aramco, World’s Most Profitable Co, Again

Image: Saudi Aramco

Saudi Aramco announced that its net income was $46.9 billion for the first half 2019, compared to $53.0 billion for the same period last year. That easily outstripped corporate titans such as Apple Inc, Amazon.com Inc and other big oil producers, many of which suffered larger declines in profit as output and crude prices fell. Saudi Aramco President & CEO Amin H. Nasser, said: “Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow underpinned by our consistent operational performance…

12 Aug 2019

Industrial Internet to Help Upstream Sector

Source: GlobalData

There has been a growing interest among oil and gas companies in adopting the Industrial Internet to improve sustainability and market competitiveness, said a study.According to data and analytics company GlobalData the upstream sector is witnessing comparatively more implementations of the Industrial Internet compared to other oil and gas sectors. This is driven by the need to reduce operational risks and maximizing returns from their assets through digitization.The adoption…

09 Aug 2019

Oil Outlook Becomes Gloomier: Rystad

Graph: Rystad Energy

Rystad Energy said the oil market was going “from gloomy to gloomier”, calling into question the consultancy's own bullish view for the first part of 2020.Recent developments in the oil market have sent cold shivers through Rystad Energy’s oil market team, calling into question our short- bullish view for the first part of 2020 linked to the new IMO shipping fuel regulations.“Economic recession risk and further escalation of the US-China trade war are key concerns in the near term.

08 Aug 2019

China Trade Data Calms Jittery Investors

AdobeStock / © Redindie

Stronger-than-expected Chinese export data helped push global stock markets higher on Thursday following a volatile week that had investors scrambling for safety on fears of a worldwide economic pullback.Investors were encouraged by data showing Chinese exports rose 3.3% in July from a year earlier, beating an expected decline of 2%. Chinese imports fell less than forecast, despite the U.S.-China trade war.Markets reacted sharply on Monday after China let its currency weaken beyond 7 yuan per dollar, a surprise move that investors took as retaliation for U.S.

Maritime Reporter Magazine Cover Dec 2019 - Great Ships of 2019

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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