2024.08.23

Houthi attack on oil tanker in Red Sea triggers environmental threat

The Greek-flagged oil tanker Sounion, carrying 150,000 tonnes of crude oil, poses an environmental risk after being attacked by the Houthi group in the Red Sea. The Houthis, aligned with Iran and controlling large parts of Yemen, claimed responsibility for the attack, citing ties between the tanker's owners and Israel. The incident, which caused a fire and loss of engine power, led to the evacuation of the crew and left the vessel stranded between Yemen and Eritrea. The EU's Red Sea naval mission responded by rescuing the crew and neutralizing additional threats. This is part of a series of Houthi attacks on ships in the region, raising concerns about global trade and environmental safety.

[SLOW] https://slowspace.io/ _ MT SOUNION

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[SLOW] Trade Flow https://slowspace.io/ Russia seaborne crude oil export to China and India

India overtakes China as Russia's top oil buyer in July

In July, India surpassed China to become the largest importer of Russian oil, driven by Indian refiners capitalizing on discounted prices amidst Western sanctions on Moscow. Russian crude accounted for a record 44% of India's total imports, reaching 2.07 million barrels per day (bpd), a 4.2% increase from June. In contrast, China's imports from Russia dropped to 1.76 million bpd due to lower profit margins from fuel production. India's increased oil purchases are reshaping trade flows, particularly of Russia's ESPO Blend crude, from traditional Chinese buyers to South Asia. Despite this shift, Iraq, Saudi Arabia, and the UAE remain key oil suppliers to India.

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[SLOW] Weekly Dirty Tanker Research _ OPEC crude inventory rate

Iraq and Kazakhstan submit plans to offset overproduction, OPEC reports

OPEC has received updated compensation plans from Iraq and Kazakhstan to address their overproduction earlier this year. Both countries plan to make up for excess output by September 2025. Iraq's overproduction totaled 1.4 million barrels per day (bpd) and Kazakhstan's 699,000 bpd between January and July. The move aligns with OPEC+ efforts, which include Russia, to stabilize the global oil market through production cuts in place until 2025. Iraq's oil ministry emphasized its commitment to these joint efforts to ensure market balance and protect the interests of both producers and consumers

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[SLOW] EIA - Crude Oil Outlook _ United States

US shale oil output to surge in 2025 amid enhanced efficiency, BloombergNEF reports

US shale oil production is expected to increase by 600,000 barrels per day in 2025, marking a 50% rise from this year, driven by improved well productivity, according to BloombergNEF. Enhanced drilling and fracking techniques have enabled producers to extract more oil with fewer rigs and less capital investment. BloombergNEF predicts US production will reach 13.9 million barrels per day in 2024, surpassing the US Energy Information Administration's estimate of 13.7 million barrels. This increase comes as oil prices have dropped due to weaker-than-expected global demand, creating challenges for OPEC and its allies.

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[SLOW] Shipping Market - Gas _ Freight Indices

Eastern Pacific Shipping orders four rare Large Gas Carriers in $340M deal

Eastern Pacific Shipping, led by Idan Ofer, has placed an order for four dual-fuel 60,000-cbm LPG carriers at a Chinese shipyard, marking the end of a decade-long hiatus in ordering this rare type of gas carrier. The $340 million deal with CSSC Huangpu Wenchong Shipbuilding involves vessels to be delivered between 2027 and 2028. These large LPG carriers (LGCs) are specialized for niche trades, including long-haul ammonia transport, and are scarce in the global fleet, with only 21 currently in operation. The order is speculated to be for replacing older vessels in Eastern Pacific's fleet.