2024.09.02

Houthis claim second attack in Gulf of Aden, escalating maritime tensions

Yemen's Houthi militants claimed on Saturday to have launched a second attack on a Liberia-flagged container ship in the Gulf of Aden, escalating their campaign against commercial shipping in the region. The attack, which targeted the MV Groton, was announced by Yemeni military spokesperson Yahya Saree, although the exact timing was not specified. According to the United Kingdom Maritime Trade Operations, two missiles exploded near the vessel on Friday, approximately 130 nautical miles east of Yemen's Aden, with no reported damage and the crew confirmed safe. The Houthis have been conducting a series of attacks on commercial vessels, citing solidarity with Palestinians in the Israel-Hamas conflict, and have threatened to continue these actions unless a ceasefire is reached. Recent incidents include multiple assaults on the Greek-flagged oil tanker Sounion, which was carrying about 1 million barrels of oil.

[SLOW] https://slowspace.io/

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OPEC+ likely to proceed with planned October output hike

OPEC+ is leaning toward increasing oil production as scheduled in October, according to delegates involved in the discussions. Led by Saudi Arabia and Russia, the alliance plans to add 180,000 barrels per day as they continue to gradually restore output halted since 2022. Despite concerns over weakening oil prices due to China's slowing economy, which had led some analysts to predict a delay, there are no indications of postponement at this time. A political crisis in Libya, which has significantly reduced its oil output, may have created the conditions for OPEC+ to move forward with the production increase.

[SLOW] EIA - Crude Oil Outlook _ OPEC

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Libya’s oil shutdown disrupts Aframax shipping as political tensions rise

Libya's recent shutdown of oil production and exports, driven by escalating tensions between its eastern and Tripoli-based governments, is disrupting Aframax tanker operations. The halt, declared under "force majeure," has led to a drop in Aframax freight rates, particularly for cross-Mediterranean voyages, and has affected the MED/Singapore route. Libya, which accounted for one-quarter of all Mediterranean Aframax loadings – roughly 45 per month - has suspended exports from several major ports, impacting global oil supply and pushing Brent crude prices above $80 per barrel. On Thursday, Libya halted oil exports from five eastern ports, which together have a combined capacity of approximately 800,000 barrels per day, according to sources cited by Bloomberg. The shutdown reflects ongoing power struggles over Libya's oil wealth and Central Bank leadership, threatening the fragile peace and economic recovery in the country.

[SLOW] Aframax Market Monitor _ TD19, cross-Med TCE

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[SLOW] https://slowspace.io/ _ Northern Sea Route (NSR), Viktor Bakaev

Russian oil tankers increasingly use Arctic route to bypass sanctions and deliver crude to China

Amid Western sanctions, Russian tankers are increasingly using the Northern Sea Route (NSR) through the Arctic to transport Urals crude and other oil grades to China. It’s reported that since the NSR's reopening in July, eight vessels have taken this quicker but risky route. Notably, larger vessels like Suezmaxes and Aframax tankers, including those owned by Russian state shipping company Sovcomflot, have made the journey. The route offers a faster alternative to traditional pathways, especially in light of Houthi attacks in the Red Sea, but remains challenging due to harsh Arctic conditions. The Viktor Bakaev, one of these tankers, has been blacklisted by the US, highlighting the ongoing struggle of sanctioned Russian ships to maintain trade.

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[SLOW] LR2 Market Monitor _ LR2 TCE comparison

Product tankers face demand slump as crude tankers enter clean trades, says Clarksons

Product tankers have experienced reduced activity this year as crude tankers, particularly VLCCs and Suezmaxes, transition to clean trades due to falling rates in the crude sector. Clarksons Securities noted that this summer’s market for product carriers was slower than expected, with weaker oil demand, particularly from China, and low distillate margins in Europe. The switch of larger crude tankers to clean trades has intensified pressure on the product tanker market, leading to a 1% drop in clean fleet utilization in the first half of the year. This shift contributed to a significant decrease in global LR2 earnings, which fell from $59,700 per day in March to $27,500 per day in September. Despite these challenges, Clarksons anticipates a rebound in LR2 earnings to $56,000 per day in the last quarter of 2024, supported by the approaching winter season and reduced crude tanker "cannibalization." According to Steem1960 Shipbrokers, the share of crude tankers carrying petroleum products reached a 25-year high of 15% in July and August, further straining the product tanker market.

[SLOW] LR2 Market Monitor _ Weekly Lifting