Saudi Arabia News

13 Nov 2019

Product Tanker Freight Rates Rebounds

Pic: TORM

Product tanker freight rates softened in the third quarter of 2019 but rebounded strongly at the start of the fourth quarter following an increase in crude tanker rates that began after the attacks on Saudi Arabian oil facilities and accelerated dramatically to multi-year high levels at the end of September when the US imposed sanctions on two subsidiaries of China's COSCO Shipping.Denmark-based TORM said that growth in global demand for oil products generally remained subdued…

10 Nov 2019

Global Coalition Launches Operation Sentinel

Pic: U.S. Naval Forces Central Command

The US Central Command announced the opening of operations from its Bahrain headquarters to protect shipping in the troubled waters of the Gulf, after a string of attacks that Washington and its allies blamed on Iran.The new mission, dubbed Operation Sentinel, is designed to “ensure freedom of navigation and free flow of commerce in international waters” throughout the Gulf, Strait of Hormuz, the Bab el-Mandeb Strait and the Gulf of Oman, US Central Command said in a release“Today…

08 Nov 2019

IMO2020: Market Uncertainty Brings More Fuel Oil Price Volatility

Photo: BIMCO

The oil market has recently been shaken up by geopolitical events, but volatility in the price difference between low and high sulphur fuel cannot be explained by that alone – the uncertainty is the chaos factor.The uncertainty of the upcoming IMO 2020 Sulphur cap regulation (IMO2020) is having a big impact on the bunker market. Whereas, the price for Marine Gas Oil Low Sulphur (MGO LS) has largely remained stable, the price for High Sulphur Fuel oil (HSFO) has been become increasingly more volatile in recent months.

06 Nov 2019

Seasonality Impacts Chemical Tanker Market

Pic: Odfjell SE

The chemical tanker earnings for the third quarter of 2019 was impacted by the usual seasonal slowdown in volumes while rates remained stable, said Odfjell Group.According to the company specializing in worldwide seaborne transportation and storage of chemicals and other specialty bulk liquids,spot rates were stable to slightly stronger on the front haul routes but strong competition and seasonally lower volumes on the back-haul routes had a negative impact on the overall market.A…

03 Nov 2019

US Eyes India for Quantum Leap in LPG Exports

Pic: World Energy Consultants, LLC

Trump administration trade tariffs on China will need to cease and India will have to rely more on U.S. LPG supplies for the world to clear the quantum leap expected for U.S. LPG exports, says a study.The study of global seaborne LPG trade flows using Kpler LPG cargo tracking data questions the global LPG market’s ability to grow fast enough to handle the tsunami wave of new LPG production expected from the United States in 2020 and 2021."The U.S. has become the largest LPG exporter in the world and now exports more LPG than the U.A.E., Qatar and Saudi Arabia combined.

29 Oct 2019

India, S. Arabia in New Petro Relationship

Indian Prime Minister, Narendra Modi meeting the King Salman bin Abdulaziz Al Saud of Saudi Arabia, in Riyadh, Saudi Arabia on October 29, 2019. Photo: PIB

India and Saudi Arabia have decided to expand its ‘energy relationship’ into next phase to include Saudi partnership in building additional crude oil storage reserves in India, a new refinery on the west coast of India and investment in retail sector in petroleum.Saudi Arabia is its second-biggest supplier of crude oil after Iraq. It sold 40.33 million tonnes of crude oil to India in 2018-19 fiscal, when the country had imported 207.3 million tonnes of oil.India imports around 18 per cent of its crude oil from the Kingdom…

27 Oct 2019

Virgin Hyperloop to Add $4Bln to S. Arabia

Pic: Virgin Hyperloop One

Virgin Hyperloop One (VHO) is anticipated to pile in a potential US$4 billion into Saudi Arabia as it strives to make hyperloop transportation a reality.A 35-kilometer test and certification track will be built 100 kilometers north of the Red Sea port of Jeddah, in King Abdullah Economic City (KAEC) by US tech transport company VHO, which commissioned the study.The study said that a Center of Excellence, if approved, would drive domestic growth by adding to the creation of more than 124…

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

Bahri Profits Up in Q3

Abdullah Aldubaikhi, CEO. Photo: Bahri

The owner and operator of very large crude carriers Bahri announced strong financial results for the third quarter ended September 30, 2019, on the back of solid growth in the logistics services sector.The National Shipping Company of Saudi Arabia said that its net profits soared 80.52 percent to SAR 146.73 million (USD 39.12 million), from SAR 81.28 million in the corresponding quarter in 2018, primarily due to an increase in returns of several operating segments.Bahri’s revenues during the three-month period between July and September jumped 6.28 percent to SAR 1.48 billion…

22 Oct 2019

DP World Reports Lower Quarterly Global Cargo Volumes

© jamesboy / Adobe Stock

Port operator DP World reported on Tuesday a third quarter decline in cargo handled across its global portfolio as volumes fell in Dubai for a sixth consecutive quarter.The operator said it handled 18 million twenty foot equivalent unit (TEU) containers in its ports in the three months to Sept. 30, down 1.6% on the same period a year ago.It said a global trade row created a challenging environment. The United States and China have been locked in a trade row that has cast a shadow over global economic prospects.At its flagship Jebel Ali port in Dubai…

21 Oct 2019

Damaged Iranian Tanker Enters Iranian Waters

The Sabiti (CREDIT: MarineTraffic.com / © Peter Lawson)

An Iranian tanker damaged in the Red Sea two weeks ago has entered Iranian territorial waters, the official IRNA news agency reported on Monday, citing information from the National Iranian Tanker Company.The tanker will dock at Kharg Island in two days, the report said.Iranian President Hassan Rouhani said last week that the tanker, the Sabiti, had been hit by at least two rockets, and there is video footage of the incident.The attack was undoubtedly carried out by a government and there would be consequences…

16 Oct 2019

Saudi IMI Signs Jack-up Deal with GustoMSC

Left to right: Mr. Rutger Baan, (Commercial Director, GustoMSC B.V.) , Mr. Fathi Al Saleem, (CEO, International Maritime Industries.) Photo: International Maritime Industries

Saudi-based International Maritime Industries (IMI) has announced that it had signed a licence agreement with GustoMSC, a subsidiary of Houston rig and equipment builder National Oilwell Varco (NOV).The agreement entails a new GustoMSC drilling jack-up design which will utilize the modern manufacturing capabilities currently planned for at IMI, said a press note.As a result of the agreement IMI will be fully prepared for its first production operations anticipated in 2021.Fathi K Al Saleem…

16 Oct 2019

U.S. Shipping Sanctions Give Boost to EU Refiners

Exxon's Rotterdam Refinery (CREDIT EXXON)

U.S. sanctions imposed last month on subsidiaries of vast Chinese shipping fleet Cosco have given an unexpected boost to European refiners as less crude oil from the North Sea and West Africa heads east, traders and analysts said.Freight rates have soared as oil producers scramble for non-blacklisted vessels, discouraging longer-distance voyages.Complex refining margins for advanced facilities capable of extracting even more valuable products like diesel and gasoline, have been especially strong in Europe, industry sources said.The U.S.

16 Oct 2019

U.S. Frets About Untrackable China Ships with Iran Oil

Stock / © Carabay

The White House is warning Chinese shipping companies against turning off their ships' transponders to hide Iranian oil shipments in violation of U.S. sanctions, two senior administration officials said."We've been messaging very heavily to the shipping companies, you don't want to do this, it's not worth it," said one official, who spoke to Reuters on condition of anonymity. "It's incredibly dangerous and irresponsible behavior."China is the largest remaining buyer of Iranian oil after U.S. President Donald Trump reimposed sanctions on Tehran's main export. Trump tightened U.S.

15 Oct 2019

US Crude Exports Expected to Double by 2022

Graph: Rystad Energy

The U.S. could see its crude oil exports nearly double by 2022, according to energy research firm Rystad Energy. US crude exports could grow from current levels of 2.9 million barrels per day (bpd) to nearly 6 million bpd by 2022.With US production expected to increase by 1.2 million bpd year-over-year (y/y) in 2020, and with domestic refineries already maxing out capacity to absorb shale growth, Rystad Energy expects exports to balloon and reach 4.7 million bpd by the end of…

14 Oct 2019

Iran Urges Diplomacy, but Decries Tanker Incident

The M/T Sabiti (creditMarineTraffic.com / © Patrick Lawson)

Iran on Monday urged regional powers to use diplomacy to reduce tensions including Yemen's war, but cautioned that an Iranian tanker damaged in the Red Sea last week had been hit by rockets and there would have to be consequences.Addressing a news conference, President Hassan Rouhani reiterated policy towards the Trump administration, ruling out bilateral talks unless Washington returns to a landmark nuclear deal and lifts crippling U.S. economic sanctions.Tensions in the Gulf have risen to new highs since May 2018…

14 Oct 2019

Iran President: Video Footage of Attack on Iranian Tanker

Iran's President Hassan Rouhani said an Iranian tanker damaged in the Red Sea on Friday had been hit by at least two rockets, and there is video footage of the incident.Iranian authorities reported that the Iranian-owned oil tanker, the Sabiti, was struck off Saudi Arabia's coast. There has been no independent report on the cause of the damage.Iran's rival Saudi Arabia has said it was not behind any attack on the tanker.

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…

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…

24 Sep 2019

India's Containerized Trade Growth Slows

Image:  A.P. Moller – Maersk

India's container trade growth slowed to 1 percent (9% in the same period last year) in Q2 2019 on account of various factors like growing trade tensions and slump in manufacturing sector, Maersk said."The slow down is due to a cocktail of international factors such as slowing trade growth, and growing trade tensions – coupled with domestic factors like rural consumer distress, tightening liquidity and a slow-down in key manufacturing sectors. Combined, these triggers impacted the country’s economic activity…

22 Sep 2019

US to Drive New-Build Gas Capacity

Graph: GlobalData

The US is expected to drive new-build gas processing capacity growth in the global gas processing industry from planned and announced (new-build) projects between 2019 and 2023, contributing around 24% of global gas processing capacity growth by 2023, according to GlobalData. The US is expected to have a new-build gas processing capacity of 16.9 billion cubic feet per day (bcfd) by 2023, a report titles ‘Global Capacity and Capital Expenditure Outlook for Gas Processing Plants'…

22 Sep 2019

Workshop on Clean Shipping in Red Sea

Pic: International Maritime Organization (IMO)

Measures for preventing air pollution from ships as well as energy efficiency requirements for ships are in the spotlight at a training event for eight countries in the Red Sea, Gulf of Aden and the Gulf.The participating countries are Bahrain, Djibouti, Egypt, Jordan, Saudi Arabia, Somalia, Sudan and United Arb Emirates.The regional workshop in Jeddah, Saudi Arabia (17-19 September) has covered International Maritime Organization (IMO) 's MARPOL Annex VI treaty, which limits the main air pollutants contained in ships exhaust gas…

18 Sep 2019

IMI Shipyard Inks VLCC Order with HHI

IMI & Bahri L-R: Mr. Fathi K. Al-Saleem, Chief Executive Officer, IMI Eng. Abdullah Aldubaikhi, Chief Executive Officer, Bahri. Photo: IMI

Saudi Arabia’s International Maritime Industries (IMI) has signed a vessel purchase agreement (VPA) with the National Shipping Company of Saudi Arabia (Bahri) and a subsequent sub-contract agreement with South Korean shipbuilder Hyundai Heavy Industries (HHI) to build one very large crude carrier (VLCC).Hyundai Heavy will transfer architectural designs and related technological know-how for the building of very large crude carriers (VLCCs) to IMI. It will build one 319,000 DWT…

Maritime Reporter Magazine Cover Nov 2019 - Workboat Edition

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