Iranian Tanker Hit by Missiles, Oil Rises
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…
UAE's Fujairah to Ban Ship Exhaust Cleaner When IMO 2020 Kicks In
The port of Fujairah in the United Arab Emirates has decided to ban the use of a type of ship exhaust cleaner, becoming the latest location to impose restrictions on so-called open-loop scrubbers, a port document showed.In recent months, many shipping companies have opted to fit scrubbers onboard their ships, ahead of major changes in the use of marine fuel across the world.The International Maritime Organization (IMO) will prohibit ships from using fuels with sulphur content above 0.5 percent from Jan.
IMO 2020: Oil Refining Capacity to Grow at Record Pace
Global oil refining capacity is set to increase at its fastest pace on record this year, possibly boosting stocks of products such as diesel, gasoline and marine fuel, the International Energy Agency said.Oil refining capacity will rise by 2.6 million barrels per day (bpd) and demand for refined products by around 1.1 million bpd, the IEA said in a monthly report.It was not clear yet what that meant for margins, which slumped as the price of crude rose last year, said the Paris-based IEA…
Brexit:: P&O Re-flags Two Ships for Tax Reasons
British ferry and shipping freight operator P&O is reviewing its UK-registered fleet and is already re-flagging two vessels to keep European Union tax arrangements ahead of Britain's departure from the bloc, the company said.A P&O spokesman said two of its UK ships operating on the English Channel route to France would be re-flagged to Cyprus."The change is being made to preserve the tonnage tax financing arrangements, under which the ships should remain flagged in an EU member state," a statement said.The spokesman added that P&O was reviewing the flag status of its four other ships operating
FSRU Suppliers Shift from Emerging Markets, Cut Back New Orders
Political instability and low credit ratings in emerging economies are putting some shipowners off ordering new floating storage and regasification units (FSRUs), as they shift focus to more mature gas markets.Liquefied natural gas (LNG) demand from emerging markets in Asia, Africa and South America was expected to be boosted by FSRU technologies that are less expensive and time-consuming than onshore import terminals.But a boom in speculative FSRU orders from shipowners led to an oversupply of units this year as import projects across the world were delayed or cancelled…
Angola's Soyo LNG Plant Resumes Production
Angola's Soyo liquefied natural gas (LNG) plant has resumed production after a "controlled" shutdown, a spokeswoman for Angola LNG said on Tuesday.She did not specify why the shutdown had occurred and declined to say when the plant would load its first cargo after reopening.An LNG trader in Europe said a cargo is expected in late December or early January.Two Angola LNG vessels are signalling arrival at Soyo, Refinitiv Eikon shipping data showed. The Sonangol Etosha is expected at Soyo on Dec. 28 and the Sonangol Sambizanga on Jan.
Saras Invests in New Bunkering Terminal
Italian refiner Saras is constructing a ship-refueling terminal at its Sardinia plant and will market a new, cleaner marine fuel ahead of a major regulatory change in 2020, its chief executive told Reuters.From January 2020, the International Maritime Organization (IMO) will ban ships from using fuels with a sulphur content above 0.5 percent, compared with 3.5 percent now, in one of the biggest changes in the oil market in decades.Refineries around the world have been gearing up for the switch by reducing output of high-sulphur fuel and upgrading plants to maximize production of the cleaner…
Yanbu Oil Terminal Boosts Export Capacity
State oil giant Saudi Aramco said on Wednesday that the Yanbu South Terminal has added 3 million barrels per day of crude oil to the company's west coast export capacity after a rehabilitation and upgrade programme."The terminal, located south of Yanbu along the west coast of Saudi Arabia, consists of a tank farm and offshore facilities to receive, store, and load Arabian Light and Arabian Super Light crude oil," Aramco said on its website.(Writing by Rania El Gamal; Editing by Dale Hudson)
China LNG Tariff Casts Shadow Over New US Export Terminals
China set a 10 percent tariff on U.S. liquefied natural gas (LNG) imports, extending a trade dispute into energy and casting a shadow over U.S. export terminals that would propel the United States into the world's second-largest LNG seller.Beijing on Tuesday said it would tax U.S. products worth $60 billion effective Sept. 24 in retaliation for tariffs imposed by U.S. President Donald Trump in an escalating trade war.The rate was smaller than the 25 percent tariff China had touted earlier, which offered some relief and helped shares in listed U.S.
Key Oil Export Terminals Reopen in Libya
Tripoli-based National Oil Corp (NOC) said on Wednesday four export terminals were being reopened after eastern factions handed over the ports, ending a standoff that had shut down most of Libya's oil output.Production and export operations would be restored "within the next few hours", an NOC statement said, although the restart at Es Sider and Ras Lanuf, where workers were evacuated and storage tanks damaged in fighting last month, was expected to be gradual.A tanker at Hariga was due to start loading 1 million barrels of crude on Wednesday afternoon…
Libya Oil Output Slashed by Port Attacks
Libya has lost some 400,000 barrels per day (bpd) of oil production in recent days because of militant attacks at the Ras Lanuf and Es Sider ports, the head of the National Oil Corporation, Mustafa Sanalla, said on Tuesday.Sanalla said there were still militants present in the area of the terminals, which were closed on Thursday following an early morning attack by opponents of eastern-based Libyan commander Khalifa Haftar."We look to fight the fire first of all, stabilise the situation…
Frontline Expects Greater Oil Tanker Demand
Increased scrapping of older oil tankers and the potential for higher output of OPEC crude are likely to boost vessel demand and thus rates, Oslo-listed shipper Frontline said on Thursday.The company reported a first-quarter operating profit of $2.8 million, while analysts in a Reuters poll on average had expected a loss of $13.3 million.Tanker rates are still low, however, and 78 percent of Frontline's very large crude carriers (VLCCs) are covered at a daily $11,600 for the second quarter compared with $14…
Hapag-Lloyd Delays Recovery Hopes
German container shipping line Hapag-Lloyd reported a higher net profit and operating result in the first quarter of 2018 on Monday, citing better transport volumes, but said earnings improvements would mostly be made in the second half."We have had a solid start into the current year, but the market environment is challenging," Chief Executive Rolf Habben Jansen said."Freight rates have been under pressure, bunker costs and trucking costs in some important markets were up and we faced a weaker U.S.
For Polluted China, Gas is a Matter of life or Death
"If I work in your Beijing, I would shorten my life at least five years," Premier Zhu Rongji, a career politician from Shanghai, quipped in 1999, referring to the notorious air pollution in China's northern capital. Research has confirmed life expectancy in northern China is 5.5 years shorter than in the south owing to the worse air pollution, and the shocking difference stems from a well-intentioned government policy to keep the residents of northern China warm in winter. According to a group of U.S.
LNG Tanker Stena Blue Sky to Arrive at Rotterdam on June 7
Liquefied natural gas (LNG) tanker Stena Blue Sky is due to arrive at the Dutch port of Rotterdam on June 7, Reuters shipping data showed on Thursday.The tanker has a capacity of about 144,000 cubic meters of gas.(Reporting by Susanna Twidale; Editing by Dale Hudson)
Oil Market Rattled by Deadly Brussels Blasts
Oil prices seesawed on Tuesday, rattled by investor nervousness after deadly blasts in Brussels prompted a flight towards so-called safe-haven assets such as gold. A suicide bomber blew himself up at Brussels airport on Tuesday killing at least 11 people and a further blast tore through a rush-hour metro train in the Belgian capital shortly afterwards, claiming 10 lives, public broadcaster VRT said. Oil had risen earlier in the session following a drop in U.S. inventory levels that helped ease some of the concern around oversupply that could dampen future price recoveries.
Russian Think Tank: Oil Exports to Decline in 2017
A think tank that advises the Russian government on taxes and energy-related issues said on Wednesday it expects the country's oil exports to fall this year thanks to a global deal to cut output, contrasting with official forecasts for a rise. Vygon Consulting said in a presentation to reporters that oil exports this year are seen declining by 0.7 percent to 252.5 million tonnes (5.1 million barrels per day) from around 255 million tonnes in 2016, a record high. The Energy Ministry forecasts Russian crude oil exports this year at 257 million tonnes.
Shipping Sentiment at All-time Low on Trade Slowdown, Brexit Risk
Global shipping confidence is at an all-time low as fears of a global recession and Britain's vote to leave the EU pile pressure on parts of the industry already suffering from its worst downturn, a leading transport survey showed on Wednesday. The global container sector, which transports everything from bananas to iPhones, as well as the dry bulk shipping market hauling commodities including iron ore and coal, are struggling with a glut of ships, a faltering global economy and weaker consumer demand.
Glencore Sees Record Oil Trading Volumes as Margins Shrink
Glencore looks set to cement its position as the world's second-largest oil trader as it tries to offset low volatility and tight margins with record volumes this year, its global head of oil, Alex Beard, told Reuters. The London-listed commodities trader and miner will shift around 6 million barrels per day (bpd) of crude and refined product this year, up 25 percent from last year. The figure represents around 6 percent of global supply and only rival Vitol trades more oil, at some 7 million bpd.
Shippers, Traders Scramble After OW Bunker Says Near Bankruptcy
Shipping companies and bunker oil traders scrambled to source fuel and take over supply contracts on Thursday after OW Bunker, one of the world's biggest shipping fuel firms, said it faces possible bankruptcy after uncovering internal fraud. Traders said refineries and other shipping fuel suppliers were cutting deliveries and were likely to cancel long-term contracts with the Danish company, which handles around 7 percent of all global bunker fuel supplies. An OW Bunker spokesman…
Burning All Fossil Fuels could Thaw Antarctica, Raise Seas-Study
Burning all the world's fossil fuel reserves could thaw the entire Antarctic ice sheet and push up world sea levels by more than 50 metres (160 feet), over thousands of years, an international study said on Friday. Such a melt, also eliminating the far smaller ice sheet on Greenland, is a worst case of climate change that would inundate cities from New York to Shanghai and change maps of the world with much of the Netherlands, Bangladesh or Florida under water. "Burning the currently attainable fossil fuel resources is sufficient to eliminate the (Antarctic) ice sheet…
Brent Oil Up to $110 on Ukraine Tension
Brent crude rose close to $110 a barrel on Wednesday due to mounting tensions in Ukraine, while prices for U.S. oil fell after a report showed a huge build in stockpiles in the world's largest oil consumer. Ukrainian government forces and separatist pro-Russian militia staged rival shows of force in eastern Ukraine amid escalating rhetoric on the eve of crucial talks on the former Soviet state's future. Brent crude has been buoyed by the tensions between Kiev and pro-Russian separatists in the east of the country.
IMO Reaches Deal to Cut CO2 Emissions
The United Nations shipping agency reached an agreement on Friday to cut carbon emissions, following years of slow progress. The compromise plan, which will cut emissions by at least 50 percent by 2050 compared with 2008 levels, fell short of more ambitious targets. Kitack Lim, Secretary-General of the International Maritime Organization (IMO), said the adoption of the strategy "would allow future IMO work on climate change to be rooted in a solid basis". The IMO said it would also be pursuing efforts towards phasing out CO2 emissions entirely.
War of Words Drive Crude Higher
Brent crude futures rose by more than a dollar a barrel on Thursday as mutual accusations of aggression by Ukraine and Russia raised concerns over future oil supplies, while strong U.S. economic data suggested higher demand. Ukraine resumed its operation to disarm pro-Moscow separatists in the east of the country and retake their positions, killing five and prompting Russia to launch fresh military drills close to the Ukrainian border. Russian President Vladimir Putin warned of "consequences" if Kiev used the army against its own people.
Statoil Reports Robust Q1
Norway's Statoil defied gloom in the oil sector by reporting first-quarter earnings above expectations on Tuesday due to higher prices and good results from shale gas activities in the United States, lifting its shares. Regarding new sanctions on Russia, Statoil's CEO told Reuters it was too early to say whether he would attend a high-profile St Petersburg economic forum in June as planned, as the firm had to assess the impact of the measures first. Oil firms have seen their profit margins decline due to a rise in costs as crude becomes more difficult to extract and several big projects…
China-bound US Sorghum Diverted to Saudi Arabia, Japan
Four U.S. sorghum shipments initially bound for China have been diverted to other countries after Beijing's move last week to impose hefty anti-dumping deposits on imports of the grain from the United States, according to trade sources and Reuters shipping data.Three of the cargoes are now sailing for Saudi Arabia after being sold to a private buyer, a U.S. trader and a Middle East-based trading source with knowledge of the matter said Tuesday. A fourth ship is heading to Japan…