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Thursday, October 1, 2020

Crude Oil News

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BIMCO Analyzes Stall in China Coal Imports

Although many of China’s major bulk imports, such as iron ore and crude oil, have seen strong growth so far this year despite the COVID-19 pandemic, imports of coal have followed the opposite trajectory. Staggering high growth in January through April has been replaced with monthly coal import growth rates in May through August below the levels recorded in the same months of 2019.This year’s coal import volumes have seen the lowest growth rate in the past three years. In the first eight months of this year…

Hurricane Sally (Photo: NOAA)

Offshore Oil Wells, Ports Shut as Hurricane Sally Advances on U.S. Gulf

Energy companies, ports and refiners raced on Monday to shut down as Hurricane Sally grew stronger while lumbering toward the central U.S. Gulf Coast, the second significant hurricane to shutter oil and gas activity over the last month.The hurricane is disrupting oil imports and exports as the nation's sole offshore terminal, the Louisiana Offshore Oil Port (LOOP), stopped loading tanker ships on Sunday, while the port of New Orleans closed on Monday.The U.S. government said 21%…

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Second Wave of Floating Storage Triggered by Ailing Oil Market

A stalled global economic recovery from the coronavirus pandemic is leading to a fresh build-up of global oil supplies, pushing traders including Trafigura to book tankers to store millions of barrels of crude oil and refined fuels at sea again.The use of so-called floating storage onboard tankers comes as traditional onshore storage remains close to capacity as supplies outpace demand.Trading house Trafigura has chartered at least five of the largest tankers each capable of storing 2 million barrels of oil…

File photo (Credit: Andrew Kendrick, U.S. Coast Guard)

US Energy Exports Severely Disrupted by Hurricane Laura

Oil and gas exports from the United States have been severely disrupted by Hurricane Laura, with nearly a million barrels per day (bpd) of crude exports likely reduced this week by closures of U.S. Gulf Coast terminals and disruptions at ports.The hurricane also temporarily suspended operations at several liquefied natural gas (LNG) facilities in the world’s third largest exporter of the super-cooled gas, with shipments on track to fall to their lowest in 18 months.Laura made landfall early Thursday near the Texas-Louisiana border…

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Frontline's Earnings Surge on Demand for Oil Storage

Oil tanker group Frontline reported a big jump in second-quarter earnings on Thursday as energy traders paid to store crude that went unsold amid the COVID-19 pandemic, the company said on Thursday.Frontline's April-June adjusted net profit rose to $206.1 million from a year-ago $4.2 million, topping a forecast of $203.3 million in a Refinitiv SmartEstimate poll of analysts."Our results for the first half of 2020 are the strongest in more than 10 years," Chief Executive Robert…

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Stored Crude, Condensate Could be Shipped from Shuttered Libyan Ports

A limited reopening of Libyan oil terminals could allow the export of some crude oil and condensate stored at Es Sider, Brega, Zueitina and Hariga, but leaves a months-long blockade of the ports in place, oil engineers say.East Libyan authorities said on Wednesday they would permit exports of the stored products in an effort to ease an electricity supply crisis that has resulted in increasingly lengthy power cuts.The ports have been blockaded since January by east Libyan factions as part a wider conflict…

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China Ramps up US Oil Purchases Ahead of Trade Deal Review

U.S. crude oil shipments to China will rise sharply in coming weeks, U.S. traders and shipbrokers and Chinese importers said, as the world’s top economies gear up to review a January deal after a prolonged trade war.Chinese state-owned oil firms have tentatively booked tankers to carry at least 20 million barrels of U.S. crude for August and September, the people said, moves that may ease U.S. concerns that China’s purchases are trending well short of purchase commitments under the Phase 1 of the trade deal.China had emerged as a top U.S.

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Spring Oil Flood Causes Summer Queues in Chinese Ports

Chinese ports are struggling to unload record volumes of crude with storage tanks full after the country rushed to buy extra barrels during April's oil price crash, according to traders and shipping data seen by Reuters.More than 80 million barrels of crude oil are currently waiting to be discharged from tankers in Chinese ports, Refinitiv Eikon data showed.Half of those are at the Qingdao port area in Shandong province, where the waiting time is two-three weeks or sometimes even longer…

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Geopolitics Dominate the Oil Tanker Market -BIMCO

Developments in the oil tanker market in the past decade dominated by geopolitics, says shipping association BIMCO.Crude oil and product tanker markets alike have faced high volatility in recent weeks and months, largely due to geopolitics and the constantly evolving situation in the global oil markets. The first major disturbance since the fall in the oil price between the fourth quarter of 2104 and first quarter of 2016 came in the fourth quarter of 2019, after which freight rates have bounced back despite a collapse in demand.In these extraordinary times…

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China to Be Self-reliant in IMO-compliant Fuel

Chinese refiners have the capacity to produce 18.1 million tonnes of low-sulphur fuel oil (LSFO) this year, which would make the country self-sufficient in the new shipping fuel, an official with state major PetroChina said on Monday.China has been striving to reduce its reliance on bunker fuel imports and is aiming to create its own marine fuel hub to supply northern Asia.About 20 refineries, mostly under state-run Sinopec Corp, PetroChina, CNOOC and Sinochem, installed equipment to produce 0.5% sulfur fuel that meets International Maritime Organization (IMO) rules that came into force at the

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Bunkering at UAE's Fujairah Plummets in May

Ship fuelling activity in Fujairah in the United Arab Emirates, a bunkering and fuel storage hub in the Middle East, fell in May as declining demand was made worse by slowing global trade because of the coronavirus pandemic, four trade sources said.Fujairah's ship refueling, or bunkering, volumes shrank to about 200,000-300,000 tonnes in May, down from average volumes of about 700,000-800,000 tonnes, said the sources with knowledge of the regional trade who declined to be identified."It's all things COVID…

Photo courtesy USCG RDC.

Coast Guard Auxiliary Supports Research Efforts

Unique among the nation’s armed services, the Coast Guard’s missions include national defense, law enforcement, natural disaster incident management, recreational boating safety and environmental protection. This diversity of mission scope presents opportunities for the Coast Guard at the strategic, operational and tactical levels as the service works to make their efforts as effective and efficient as possible.Contributing to the service’s overall execution effort is the Coast Guard Research and Development Center (RDC), based in New London, Connecticut.

Source: BIMCO, Clarksons

BIMCO Tanker Rate Analysis: Reality Kicks In, Rates Fall

Tanker shipping: sky high freight rates replaced by reality of falling global oil demandGeopolitical tensions have now eased, leaving freight rates to feel the full effects of the weak underlying market and falling demand. Tanker shipping looks set to be under pressure for the rest of the year.Demand drivers and freight ratesThe tanker shipping industry was once again caught in a whirlwind, as freight rates skyrocketed with little regard to the poor market fundamentals before the latter once again caught up with rates.

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Rosneft to Build Port for Its Vostok Oil Project

Russian state oil giant Rosneft plans to build a port with maximum annual capacity of 115 million tonnes of oil for its Vostok Oil project in the Russian Arctic, the RIA news agency quoted the company as saying on Tuesday.Rosneft said in a statement previously on Tuesday that the Vostok Oil project could be supplying 25 million tonnes of oil in 2024, 50 million tonnes in 2027 and up to 115 million tonnes in 2030.Vostok Oil unites Rosneft’s projects in northern Russia, including the Lodochnoye…

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Algeria to Lift Ban on Car Imports

Algeria will resume car imports, the government said on Sunday, after a ban failed to reduce the import bill, as the North African member of OPEC tries to rein in spending to cope with a decline in energy earnings.The plan to allow car dealers to resume imports was approved at a Cabinet meeting chaired by President Abdelmadjid Tebboune, the government said in a statement.The ban was endorsed in 2014 under President Abdelaziz Bouteflika, who resigned in April last year after pressure…

Source: BIMCO

BIMCO: 2020 and the Collapse of Bunker Fuel Markets

The sulfur regulation from the International Maritime Organization (IMO) that came into force on 1 January 2020 took the center stage in the shipping industry at outset of the new decade. Four months on, the spotlights have turned to the coronavirus and the OPEC+ oil price war.The outlook for global economic growth remains bleak as the world is faced with the largest recession since the Great Depression in the 1930s.Commodity prices have declined across the board and most recently…

MarAD Extends Comment Period for SPOT Terminal Services LLC

The Maritime Administration (MARAD) announced the extension of the period for the public to comment on the Draft Environmental Impact Statement (DEIS) for the proposed SPOT Terminal Services, LLC deepwater port facility. The comment period was initially scheduled to end on March 23, 2020, but is now extended 30-days from the publication date of this Federal Register notice published on Friday, May 1, 2020.Due to the nationwide impacts of COVID-19 and the associated social distancing protocols, MARAD and the U.S.

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Delivery Jobs Surge

Pandemic Gripping Tight, Tough Days Ahead for the Logistics IndustryWith the logistics industry enjoying a boom since 2018, the regular picture at shipping docks on working days involved a lot of commotion. People yelling, cargos waiting to be unloaded, trucks roaring, and staff running like crazy from one point to another. Yet, ever since the Coronavirus has been labeled a pandemic and has been spreading like wildfire through the US, the logistics industry has been hit a terrible blow.The global crisis of the COVID-19 pandemic has forced to take stringent precautionary measures…

Norsepower CEO and co-founder Tuomas Riski.

Interview: A Return to Wind Power with Tuomas Riski & Norsepower

Norsepower CEO and co-founder Tuomas Riski has put a new spin on some established technology, bringing wind power back to shipping in an undeniably eye-catching manner. Here Nor-Shipping’s latest ‘Ocean Action Hero’ explains the benefits of his firm’s unique technology, his plans for building global market presence, and the key role Norsepower’s sails can play in enabling a more sustainable shipping industry. “But isn’t there a problem that some people think it looks, you know… a bit odd?” Tuomas Riski laughs at a question that you quickly get the feeling he’s dealt with before.

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Baltic Exchange Adds Tanker OPEX Assessments

The Baltic Exchange has added quarterly assessments of the cost of operating crude oil carrying Aframax tankers and clean product carrying Medium Range (MR) tankers to its growing suite of shipping investor tools.The new service is based on assessments made by independent third-party ship management companies Anglo Eastern, Fleet Management and V-Ships. Using the full suite of independent Baltic Exchange indices, investors are now able to benchmark daily vessel earnings, running costs, sale & purchase and recycling prices.

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US Crude Futures Plunge to Lowest on Record

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…

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China to Build Commodity Trading Center in Caofeidian

China will beef up its Caofeidian pilot free trade zone, prioritizing the development of international commodities trade and bringing in more foreign investments, local government said on Monday.The Caofeidian district, on the edge of China's top steelmaking city of Tangshan, aims to achieve trade volume of more than 50 billion yuan ($7.07 billion) and introduce 100 foreign projects by 2022, it said in a statement on its website.The district also plans to make a commodities trading center in northeast Asia in early 2025 and to make China's northwestern provinces and Mongolia a key shipping hub

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Crude Oil Held in Sea Storage Hits New Record

Traders are storing an estimated record 160 million barrels of oil on ships - double the level from two weeks ago as they seek to tackle a glut of stocks created by a slide in global demand from the coronavirus, shipping sources say.Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have agreed a record cut in output from May of 9.7 million barrels per day, or almost 10% of global supply, to help support prices and curb oversupply.At…

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Record Oil Output Cuts Fail to Make Waves in Coronavirus-hit Market

The minimal impact on oil prices from a global deal for record output cuts showed that oil producers have a mountain to climb if they are to restore market balance as the coronavirus shreds demand and sends stockpiles soaring, industry watchers said.After several days of discussions, oil producing and consuming countries aim to remove nearly 20 million barrels per day (bpd) or 20% of global supply from the market, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said on Monday.The oil market has barely shrugged, however: Brent crude gained 1.5% on Monday, while U.S.

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China's Commodity Imports Remain Robust

The new coronavirus caused barely a blip in China's imports of major commodities, but this likely underscores the ways China differs from the rest of the world, rather than providing a template for the globe's recovery from the pandemic.China's crude oil imports in March, the month when much of the world's second-largest economy was in lockdown, were equivalent to 9.68 million barrels per day (bpd), according to official customs data released on Tuesday.That's 4.5% higher than…

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Coronavirus Disrupts Supply of Ships and Demand -BIMCO

The coronavirus outbreak has affected all aspects of the shipping industry, lowering, if not wiping out, demand growth prospects for the year across all segments. The outbreak has also affected fleet development, says shipping association BIMCO.Contracting activity has fallen, demolition activity, which had been high, is now being limited by restrictions around the world and deliveries of new vessels are delayed.“The coronavirus has certainty replaced the IMO 2020 sulphur regulation as the talking point of the year.