Global Crude Market Finds Support From China Demand
China, the global oil market's lifeline this year, has stepped up purchases from exporters like Russia, the United States and Angola in recent weeks, while buyers elsewhere pare orders as coronavirus infections surge and fresh lockdowns are put in place.China, the world's largest importer of crude, is the only major buyer expected to see increased oil demand this year as the pandemic destroyed consumption globally.With China's imports expected to reach 12 million barrels per day (bpd) next year…
Top Industry Bodies Preps for Sulfur Target
Leaders of the major shipping industry trade associations - international shipping associations representing shipowners BIMCO, International Chamber of Shipping (ICS), International Association of Dry Cargo Shipowners (INTERCARGO) and International Association of Independent Tanker Owners (INTERTANKO) met in London yesterday (September 13) to consider the transformational issues affecting the sector.Top of the agenda were the preparations for the implementation of the 2020 Global Sulfur Limit.
IMO 2020: Fujairah Tightens Exhaust Rules Ahead of 2020
Key Middle East oil terminal bans open-loop scrubbersFujairah in the United Arab Emirates has become the latest major port to ban a type of fuel exhaust cleaning system to comply with a coming tightening in rules regarding global sulphur emissions, mirroring similar moves in Singapore and China.Under International Maritime Organization (IMO) rules that come into effect from 2020, ships will have to reduce the sulphur content in their fuel to less than 0.5 percent, compared with 3.5 percent now…
Shipping Ponders the Ultimate Cost of ‘Green’
Low sulphur fuels, scrubbers, LNG and other solutions are all part of the mix. Handicapping the impact of any of these options for the bottom line is anything but easy. Getting greener is not the problem; determining the best way to get there is quite another.By any measure, the business of running vessels will not be the same after January 1, 2020, when the present 3.5% limit on sulfur content will ratchet downward to 0.5%. With the implementation date for the changes, enacted…
Ship Owners See Sulfur Cap Chaos in 2020 -ICS
The International Chamber of Shipping (ICS) fears ‘chaos and confusion’ unless the UN International Maritime Organization (IMO) resolves some serious issues concerning the implementation of the 0.5 percent sulfur in marine fuel cap, which is scheduled to come into effect globally on January 1, 2020.Such chaos would have serious consequences for the movement of the world’s energy, raw materials and manufactured products – about 90 percent of global trade being carried by sea, ICS…
Buyers Seek US Waivers to Buy Iranian Oil amid New Sanctions
South Korea said on Wednesday it would seek U.S. exemptions to buy Iranian oil, a path many big oil consumers are likely to follow in the wake of new U.S. sanctions on Tehran, which will tighten world oil markets and push up prices.Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and a key supplier, especially to refiners in Asia.The United States plans to impose new unilateral sanctions after abandoning an agreement reached in late 2015 which limited Iran's nuclear ambitions in exchange for removing joint U.S.-Europe sanctions…
Tanker Market Shows Mixed Trend -McQuilling
McQuilling Services’ 2016 Mid-Year Tanker Market Outlook Update examines the tanker shipping market from January, and forecasts the balance of 2016 through 2020 based on market conditions in the first half of the year. Findings from the report can be found below. Global oil demand in 2016 is expected to rise by 1.38 million b/d to over 95 million b/d, representing a 1.46 percent increase year-on-year, before decelerating in the balance of our five year outlook. Looking ahead, we expect global supply of crude oil to reach 78 million b/d in 2016 and over 80 million b/d by the year 2021.
ICS to Pursue Critical Issues at IMO's MEPC Meet
The International Chamber of Shipping (ICS) has made a number of submissions to a critical meeting of the IMO Marine Environment Committee (MEPC) which begins in London next week (18-22 April). These address further measures to reduce the sector’s CO2 emissions, outstanding problems with the implementation of the IMO Ballast Water Management Convention, and the need for an immediate IMO decision on whether or not ships will have to use 0.5% sulphur fuel in 2020. ICS says its immediate…
Genoil Appoints Consultancy BLUE
Genoil Inc. (GNOLF), the publicly traded clean technology engineering company for the petroleum industries, today announced the appointment of BLUE Communications Ltd, a leading communications and business consultancy specializing in the marine, energy and environment sectors. BLUE will support Genoil’s management team in effectively positioning Genoil within the shipping industry, and helping the company to unlock the significant potential for its proprietary technology, the Hydroconversion Upgrader (GHU), which converts heavy crude oils and refinery bottoms into clean burning fuels.
The Impact of Lower Oil Price on LNG Vessels
Opec study on the impact of lower oil price assumptions on the penetration of LNG vessels has released. In light of the regulations on sulphur emissions issued by the IMO the prospect of using LNG as an alternative bunker fuel was explored. It was concluded that LNG had the potential to become an important marine bunker fuel in the long-term. This year the subject is re-considered in light of recent market and price developments, as well as the continuing uncertainty surrounding the implementation of new IMO regulations.
US Lawmakers Give Preview of Oil Export Fight
U.S. lawmakers gave a preview on Thursday of a looming fight next year on lifting the ban on crude exports with supporters saying it would sustain the drilling boom and others questioning its impacts on industry and fuel prices. In a House of Representatives hearing on the ban, Texas Republican Joe Barton said exporting oil would boost the economy, lower gas prices, and help give allies alternative oil supplies to Russia. By some measures the United States is the world's top oil producer and Barton said the country should use that power.
Congressman Introduces Bill Lifting Oil Export Ban
U.S. Representative Joe Barton will introduce a bill on Tuesday to lift the 40-year ban on exports of crude oil, but the measure has almost no chance of passing due to lawmaker concerns about fuel prices and costs to refiners. Barton, a Republican from Texas, will introduce a bill to lift the export ban Congress passed in the 1970s after the Arab oil embargo led to fears of fuel shortages, an aide said. The lawmaker will introduce the measure ahead of a hearing later this week…
Sen. McCain Vows Jones Act will be Repealed
Senator John McCain said a more than 90-year-old law that requires ships servicing coastal businesses to be built and mostly staffed by U.S. crews will be repealed sooner or later if lawmakers keep fighting the trade restriction. Oil refiners, and many manufacturers and state governments oppose the Jones Act, saying the requirement increases costs by blocking shipping by cheaper foreign-built and foreign-flagged vessels. The Department of Homeland Security issued a rare waiver of the act in 2012 when superstorm Sandy led to fuel shortages at gas stations on the East Coast…
Easing US Oil Export Ban Unlikey to Raise Gasoline Prices
A government study on Thursday essentially supported the notion that easing the decades-old restriction on exporting U.S. crude was more likely to lower than raise gasoline prices for American motorists, a conclusion that could ease concerns among lawmakers about changing the policy. U.S. gasoline prices are mainly set by global oil prices, the Energy Information Administration said in a highly anticipated analysis. "The effect that a relaxation of current limitations on U.S. crude oil exports would have on U.S.
Senator Says 2015 Could Be Time for US Oil Export Bill
The top supporter in the U.S. Congress for reversing the 40-year ban on crude oil exports, Senator Lisa Murkowski from Alaska, said next year could be the time for a bill on lifting the restriction. "I think it may be timely then," Senator Lisa Murkowski, the top Republican on the Senate Energy Committee, told reporters on Thursday when asked if next year would be a good time for legislation. Lawmakers have avoided introducing a measure to lift the ban ahead of the Nov. 4 midterm elections amid concern that exporting oil could lead to higher gasoline prices.
Senator Landrieu Defends Jones Act
The United States should strengthen a century-old law designed to protect the domestic shipping industry, rather than relax it under pressure from the energy industry, the chair of the Senate Energy Committee said on Tuesday. The 1920 Jones Act restricts the delivery of goods between U.S. ports to ships made in the United States and flying the country's flags. Mary Landrieu, a Louisiana Democrat, said defending the law is one of her top priorities and cautioned the Obama administration not to relax the statute.
The Changing Face of the VLCC Market
With so much discussion of the poor freight rates available to VLCC owners hiring their ships out for voyages from the Middle East to major consumers east and west, it is informative to see how much the spot market for VLCCs has changed in just a few years. Since 2005, there has been a 25% reduction in reported AG/West spot VLCC voyages from 291 in 2005 to 216 in 2011. Just 11 AG/West fixtures were recorded in January 2012; if annualised the total would be 180, only 62% of the number recorded in just seven years earlier.