2024.08.14

Two oil tankers targeted in Red Sea off Yemen amid rising Houthi threats

Two crude oil tankers, the Liberia-flagged Delta Atlantica and the Panama-flagged On Phoenix, reported attempted attacks in the Red Sea off Yemen, though neither was damaged, and both vessels and crews are safe. The incidents resemble previous assaults by Iran-aligned Houthi militants, although the Houthis have not claimed responsibility. These attacks are part of a broader campaign linked to the conflict between Israel and Hamas, which has persisted despite international military responses. The increasing threat of Houthi attacks has led to ships rerouting around Africa, raising transportation costs and causing delays.

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Tankers International expands VLCC pool with two Vietnamese-owned vessels

Tankers International has expanded its VLCC pool by adding two Vietnamese-owned vessels, the Felix and Symphony. The Felix, owned by Phuong Dong Petrol Transport, and the Symphony, owned by Asia Pacific Shipping, have recently joined the London-based pool operator. Both ships were acquired from previous owners and are equipped with scrubbers. These additions bring Tankers International's VLCC pool to 35 vessels, enhancing its ownership diversity and scale, which the company believes will further optimize Time Charter Equivalent (TCE) rates for its partners.

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DHT considers time charters and financing for VLCC newbuildings

DHT Holdings is considering time charter contracts for some of its newly accelerated VLCC newbuildings, with delivery dates moved up to February-July 2026. The company is exploring financing options for these tankers, which were ordered amid high demand for large tanker shipyard slots. While some charterers have shown interest, significant negotiations are expected to take place next year. DHT aims to increase long-term contract coverage and fixed income. The company decided against additional newbuild options to avoid altering its financial structure. Despite a recent dip in profits due to lower VLCC rates, DHT remains focused on its core plan for four new ships.

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US shale boosts crude output with fewer rigs, challenging OPEC's supply plans

US shale companies are increasing crude oil production through greater operating efficiencies without raising spending. By extending well lengths, optimizing drilling pads, and simultaneously fracking multiple wells, producers have been able to boost output. Major companies like Chevron, Diamondback, and Devon Energy have raised their production targets for the year, with Chevron expecting a 15% increase in Permian Basin output. This increased U.S. production is likely to lead to an oversupply in the global oil market, complicating OPEC's plans to reduce output cuts. Analysts predict U.S. production could grow by 500,000 barrels per day by the end of the year, surpassing government forecasts.

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Aegean Sea becomes new hub for Russian diesel transfers

The Aegean Sea has become a new hotspot for ship-to-ship transfers of Russian diesel and gasoil, as Russia's oil product exports increased in July despite ongoing sanctions related to its invasion of Ukraine. Transfers previously took place in areas like Greece’s Laconian Gulf, Malta, and Egypt’s Port Said. In July and August, several vessels loaded in Russia's Black Sea ports of Taman and Tuapse transferred cargoes in the north Aegean. Despite a decline in ship-to-ship transfers in European waters, Russia's oil product export revenue rose by 3%, reaching €219 million per day, while overall fossil fuel export revenue slightly declined.

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Russian gas flows to Europe persist despite Ukraine conflict, EU prepares for potential supply cuts

Despite intense fighting between Ukrainian and Russian forces near key gas pipelines, Russian gas supplies to Europe remain uninterrupted, according to network operators and gas companies. Austria, the most reliant EU country on Russian gas, reported no irregularities in supply. Russia's Gazprom continues to pump gas through the Sudzha pipeline to Ukraine and onto Slovakia and other EU countries. Austria has prepared for potential supply disruptions by maintaining high storage levels and securing alternative sources, but still faces economic risks if supplies are cut. As the current Ukraine-Russia transit deal is set to expire, several European countries are preparing for possible stoppages, with Slovakia heavily dependent on Ukrainian gas flows.