Oil Product News

25 Nov 2019

BIMCO: Tanker Shipping and Macroeconomics Outlook

Source: BIMCO, WTO

World growth and trade volumes under pressure, but still positive. A continued slowdown in global growth, as well as a lower trade multiplier will reduce overall demand for shipping for the rest of this year and through 2020.Expectations for global trade growth have also been lowered for 2020; this is now forecast at 2.7%, down from 3%. The WTO cautions that risks to these forecasts are weighted to the downside, with these risks including a potential deepening of trade tensions…

16 Sep 2019

At Least Two Empty Oil Product Tankers Diverted from Saudi Port

©Patrick Deenik/ MarineTraffic.com

At least two refined product tankers that were due to load at Saudi Arabia's Jubail port in mid to late September have been diverted, data from analytics firm Vortexa showed.The moves come after attacks on Saudi Arabia's oil infrastructure on Saturday that cut the country's crude output by more than half and reduced its refinery runs by an unknown amount.Saudi Arabia is typically a net exporter of diesel but Aramco Trading Co, the trading arm of state oil producer Saudi Aramco…

18 Jul 2019

Singapore Fuel Stocks at Eight-month Low Ahead of IMO 2020 Deadline

AdobeStock / © mikesjc

Oil product inventories in the Singapore storage and trading hub fell to an eight-month low in the week ended July 17, official data showed, in one of the latest signs that suppliers are gearing up for rule changes to make marine fuel cleaner.Singapore onshore stocks of petroleum products, which include gasoline, diesel, jet fuel and residual fuel oil, came in at 38.372 million barrels, down from 41.725 million barrels in the previous week and their lowest since the week ended Nov.

12 Jul 2019

Rhine water levels hit 2-month low

File Image: Cargo movement along an inland waterway in Germany (CREDIT: AdobeStock / 
 © digitalstock

Water levels along the Rhine river, a key waterway for transporting commodities and other products from coastal areas to inland locations in France, Germany and Switzerland, fell to their lowest since May 21, Refinitiv Eikon data showed.Levels at the Kaub <WL-KAUB> location in Germany hit 201 centimetres and have been steadily declining since late June, the data showed.Oil barge brokers said the low water levels meant barges were leaving the Amsterdam-Rotterdam-Antwerp refining and storage hub to inland locations not fully laden.Water levels along the river hit a record low of 25 cm in October

21 Jun 2019

BIMCO: VLCC Freight Rates from Gulf to China Doubles

Chart: BIMCO

VLCC spot freight rates between the Arabian Gulf and China rose 101% in the days between June 13, 2019 and June 20, 2019, in the aftermath of attacks on two tankers in the Strait of Hormuz. Spot freight rates for a VLCC, carrying 2 million barrels of oil, between the Arabian Gulf and China reached USD 25,994 per day on June 20, their highest level since March and significantly above the May average of USD 9,979 per day.Despite this increase, freight rates on this route only narrowly exceeds the daily break-even costs of a VLCC…

09 Apr 2019

Vopak Sells 3 Terminals First State Investments

Image: Royal Vopak

Dutch oil and chemicals storage company Royal Vopak has agreed to sell three terminals - Algeciras, Amsterdam and Hamburg - to First State Investments for 723 million euros ($812 million)."This divestment follows the strategic review of these terminals as announced on 17 August 2018. The transaction is subject to certain customary closing conditions and is expected to complete in the second half year of 2019. The combined operational capacity of the three terminals is 2,288,000 cbm…

12 Mar 2019

IMO 2020: Shell, HES to Resurrect Refinery

Royal Dutch Shell has struck a deal with Dutch tank terminal firm HES International to partially restart a German oil refinery mothballed since 2011 in response to new restrictions on marine fuels, two trading sources told Reuters.A new cap set by the International Maritime Organization (IMO) that will cut the sulfur content in shipping fuel to 0.5 percent from 3.5 percent from next year is set to be one of the biggest fundamental events to hit oil markets in years.HES Wilhelmshaven Tank Terminal is in the process of reinstalling the vacuum distillation unit (VDU) at Wilhelmshaven to produce low-sulfur bunker fuels ahead of the implementation of the IMO rules…

14 Jan 2019

Cable Ship Capsizes near Singapore after Tanker Collision

The tanker ANTEA (file image / credit © MarineTraffic.com

An undersea cable and pipe-laying ship, the Vanuatu-flagged MV Star Centurion, capsized in the Indonesian waters of the Singapore Straits after a collision with a tanker on Sunday, with no fatalities, authorities said on Monday.The Singapore Straits are one of the world's busiest shipping zones with hundreds of container ships, oil and fuel tankers and dry bulk carriers daily traversing the waters that connect east Asia to Europe, India and Africa.The collision happened just north of Bintan…

08 Jan 2019

Deadly Oil Tanker Fire near Hong Kong

(Photo courtesy Hong Kong Police)

An oil tanker caught fire in Hong Kong's southern waters on Tuesday, killing one crew member while at least 21 were rescued, police said, with witnesses reporting a loud blast that shook windows several kilometers away.Rescue operations were going on about one nautical mile south of Lamma Island."There are still some crew that haven't been saved," a police spokeswoman told Reuters. She was not immediately able to provide more details including the name of the tanker, or its size.A…

18 Oct 2018

Record Low Rhine Levels Hampers Barge Trade

© Markus Mohr / Adobe Stock

Water levels on the Rhine River fell to a record low on Thursday and were forecast to fall even further, hampering oil product barge trading in northwest Europe.Water levels at the Kaub point of the river fell to 31 cm, according to Refinitiv Eikon data, the lowest level in data available since September 1995.Shallow water on the Rhine in Germany means freight vessels cannot sail fully loaded.The river is an important shipping route for commodities including grains, minerals, coal and oil products including heating oil.

21 Sep 2018

Trafigura Leases 35 Crude Oil and Product Tankers

(Photo: Trafigura)

Commodity trader Trafigura had leased 35 newly built crude oil and oil product tankers from an undisclosed Asian financial partner with the vessels expected to be delivered late this week and all through 2019, the company said."Until 2020, the vessels will run on regular fuel, and from then onwards, whenever allowed (some ports do not allow usage of open loop scrubber), they will burn high sulphur fuel oil, which is possible due to the scrubber onboard each vessel," a company spokesman told Reuters on Friday.The tankers…

18 Jul 2018

Vitol Invests in Coal-to-oil Venture as Shipping Fuel Rules Loom

© xy / Adobe Stock

Energy trader Vitol and coal miner Peabody Energy are partnering with start-up Arq to turn coal waste into a low-sulphur oil product that could be an alternative fuel for shippers as new U.N. pollution rules loom, the companies said in a statement.Global oil and shipping companies are looking at any and all options to avoid becoming a casualty of the major market dislocations that the new standards will create when they come into effect in 2020.The U.N. International Maritime Organization (IMO) will ban ships using fuel with a sulphur content higher than 0.5 percent…

30 May 2018

Tanker Market Grappling with More Uncertainty

© Thor Jorgen Udvang / Adobe Stock

Tanker shipping: Added uncertainty is not helpful to the struggling tankersDemandJust when you thought it could not get any worse for the tanker shipping industry, the U.S. is reimposing sanctions on Iran coming into force after a six months wind-down period ending on November 4, 2018. The immediate effects are less tangible but sure to add more uncertainty to the whole shipping industry that has plenty of uncertainty to deal with already.At the same time, freight rates for both crude oil tankers and oil product tankers are mostly in loss making territory.

28 May 2018

Rosneft and GNPC Arrange LNG Supply to Ghana

Poto: Rosneft

Rosneft and the Ghana National Petroleum Corporation (GNPC) signed the package of documents assuming the delivery to the port of Tema (Ghana) over 12 years of the liquefied natural gas (LNG) in the volume of ca. 1.7 mmtpa (or 250 mln standard cubic feet per day), its regasification using the processing capacities of Tema terminal in order to subsequently supply the natural gas to GNPC. The obligations of the parties arising from the above documents will come into effect once they are approved by the Boards of Directors of the parties.

16 May 2018

Maersk Tanker Unit to Wind Down Customer Agreements in Iran

Photo: Maersk Tankers

Danish oil product tanker operator Maersk Tankers, part of shipping group A.P. Moller-Maersk, said on Wednesday it would wind down its customer agreements in Iran by November following new U.S. sanctions on Tehran."We will perform customer agreements entered into before May 8 and ensure that they are wound down by November 4, as required by the re-imposed U.S.

16 May 2018

Container Shipping Line MSC Stops New Iran Bookings

The MSC Christina (CREDIT: Haifa Port)

The world's No. 2 container shipping line MSC said on Wednesday it would stop taking new bookings for Iran due to the decision by the United States to re-impose sanctions on Tehran after withdrawing from the international nuclear deal. In a note to clients, privately held MSC said it was "ceasing to provide access to services to and from Iran", adding that they would "conclude this period with the minimum disruption" to their customers' business. "While MSC is not accepting bookings for shipments originating from Iran…

15 May 2018

Torm Stops Taking Orders in Iran Due to US Sanctions

(Photo: Torm)

Danish oil product tanker operator Torm on Tuesday said it has stopped taking new orders in Iran as a consequence of U.S. plans to reimpose sanctions on Tehran."We follow the situation closely and always follow the rules. Therefore, we have also stopped taking new orders in Iran," a spokeswoman told Reuters.Torm operates 79 oil product tankers worldwide.The United States last week withdrew from an international nuclear accord with Iran and announced renewed sanctions against the country.While it is still unclear how U.S.

18 Apr 2018

BIMCO’s Market Analysis Team Launch Supply Side Graph Section

Dry Bulk Fleet Growth (Photo: BIMCO)

BIMCO’s Market Analysis Team launches a graph section, where BIMCO members can get an overview of a specific sector and how the supply side of that sector develops. “We have structured the data and made it easily available through our website. In this way our members will follow the most recent developments affecting their core interest. This gives them an unbiased and transparent tool for their decision-making process. The goal is to ease the way to rational strategic business decisions,” says BIMCO’s Chief Shipping Analyst Peter Sand.

28 Jan 2018

Petrobras to join Oil and Gas Climate Initiative (OGCI)

Photo: Petrobras

Petróleo Brasileiro SA (Petrobras) has announced its intention to join the Oil and Gas Climate Initiative (OGCI). The company revealed that its CEO, Pedro Parente, has signed a letter of engagement so that the company can become an effective member of the voluntary initiative, which aims to lead the industry response to climate change. The OGCI is the CEO-led grouping of oil and gas companies that intends to lead the industry’s response to climate change, pooling knowledge and collaborating on action to reduce greenhouse emissions.

27 Nov 2017

IMO Orders Fuels of the Future

© Igor Groshev / Adobe Stock

The new sulfur, carbon dioxide limits ewill demand precise understanding by ship owners and operators. Globally, new regulations are coming into effect governing the Sulfur Oxide (SOx) limits and CO2 emissions. The International Maritime Organization (IMO) has updated the maximum amount of SOx allowed in fuels and the European Commission is introducing new reporting requirements to monitor CO2 emissions. Understanding the impacts of these changes on ship owners and operators is critical given the market conditions for maritime services.

18 Oct 2017

Port of Amsterdam Signs Pact with Port of Fujairah

Photo: Port of Amsterdam

Port of Amsterdam, STC-Group Holding and Iskes Towage & Salvage signed a Memorandum of Understanding (MoU) in Amsterdam with Port of Fujairah (PoF), one of the largest oil storage and bunkering hubs in the world. The agreement focuses on further strategic cooperation. Located on the east coast of the United Arab Emirates, the port of Fujairah has seen tremendous growth in the past decades, turning from a regional multi-purpose Port into an important part of the global oil supply chain.

01 Sep 2017

VLCC, Product Tanker Rates Headed in Opposite Directions

File Image (CREDIT: AdobeStock / (c) Carabay)

No impact on VLCC rates yet from Hurricane Harvey, even as rates for smaller product tankers double. Freight rates for very large crude carriers (VLCCs) on Asian routes continue to sink on a glut of available tonnage as owners wait for supply disruptions caused by Hurricane Harvey to help support the market, brokers said. Charter rates for VLCCs from the Middle East have fallen to around 36 on the Worldscale measure. "In terms of VLCCs we've not seen much knock-on effect (from Harvey) yet, but I'm sure there'll be some lasting effect," a Singapore-based supertanker broker said.

28 Aug 2017

Tanker Shipping: Is the Oil Market Rebalancing or Not?

© Igor Yu. Groshev / Adobe Stock

The one key factor to watch is the one thing that’s impossible to measure accurately on a global scale, oil stocks. Global stocks for both crude oil and oil products rose significantly following the sharp fall in crude oil prices in the second half of 2014. But while this may seem to be in the past, it is still haunting the oil market and the oil tanker market. Demand in the tanker market is below normal levels and will only increase once the global oil stocks have been reduced.

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