2024.09.10

VLCC begin seasonal rise with the onset of September

As September begins, VLCC rates have surged, continuing momentum from last week’s increase. Rates for the largest tankers climbed to $34,200 per day, a 26% rise from the previous week, driven by refinery scheduling and early October crude loadings. According to the broker’s data, eco-designed vessels on the US Gulf to China and West Africa to China routes are earning $35,500 per day, while ships traveling east from the Middle East are lagging behind their Atlantic basin counterparts, earning $29,700 per day. Although September loadings initially faced low returns, rates picked up significantly by midweek. Leading the pack was Dynacom’s 300,000-dwt Alexandros (built 2022), which earned $45,754 per day for a voyage from West Africa to China on behalf of Unipec. LR1 and LR2 product tankers also saw week-over-week improvements, with rates rising by nearly 14% and 7%, respectively.

[SLOW] Daily VLCC Market _ VLCC TCE Comparison by routes

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[SLOW] Oil Market  Oil Time Spread Benchmark futures

APPEC 2024 : Traders predict oil prices to fall to $60-$70 per barrel amid oversupply and China demand concerns

Commodity traders Gunvor and Trafigura forecast oil prices to drop to $60-$70 per barrel due to oversupply and weak demand from China and the U.S. Oil prices have been under pressure despite OPEC+ delaying planned output increases, with traders warning the relief may be short-lived. Global supply is expected to rise to 103 million barrels per day (bpd) in 2023 and grow further in 2024, driven by production from the U.S., Canada, and Brazil. China’s soft demand and record short positions in the oil market add to the risk of future price volatility.

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[SLOW] https://slowspace.io/  Trade Flow Japan seaborne crude imports statistics by origin countries

APPEC 2024 : Taiyo Oil shifts to US crude, reducing reliance on Russian oil

Japanese refiner Taiyo Oil has shifted from Russian crude to U.S. supplies as part of its strategy to diversify its crude sources, CEO Takahiro Yamamoto announced at the APPEC conference. Currently, 50% of Taiyo’s crude supply comes from the Middle East, 25% from Asia, and less than 25% from the U.S.

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[SLOW] Oil Market _ Northwest Europe oil product price

APPEC 2024 : Kuwait Petroleum becomes leading jet fuel supplier to northwest Europe in 2024

In 2024, Kuwait Petroleum Corp (KPC) became the largest supplier of jet fuel to northwest Europe and is now looking to expand its presence in other markets. Speaking at the Asia Pacific Petroleum Conference (APPEC), KPC’s managing director of international marketing, Shaikh Khaled Ahmad Al Sabah, highlighted the company’s significant market share in the region and expressed optimism about opportunities for increasing its share in refined fuel consumption in other areas.

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[SLOW] EIA - Crude Oil Outlook _ Saudi Arabia oil production

Saudi Arabia lowers October Arab light crude price for Asia to near three-year low

Saudi Arabia has reduced the October price of its Arab Light crude for Asia to $1.30 per barrel above the Oman/Dubai average, marking the lowest price since November 2021. The 70-cent price cut reflects concerns over weak demand in the region, surpassing expectations from some Asian refiners. The reduction comes amid a global drop in oil prices, with Brent crude hitting its lowest level since December 2021. In addition to price cuts for Asia, Saudi Arabia also lowered prices for Northwest Europe and the Mediterranean by 80 cents a barrel across all crude grades. This follows OPEC+'s decision to delay a planned output increase.

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QatarEnergy orders six LNG vessels with $8 billion deal with China

QatarEnergy has expanded its order for 271,000-cbm QC-Max LNG carriers by six more units, bringing the total to 24 at China’s Hudong-Zhonghua Shipbuilding. This deal, valued at approximately $8 billion, is part of QatarEnergy's extensive fleet expansion program, which now includes 128 LNG carriers. The new QC-Max vessels, the largest of their kind, are expected to be delivered between 2028 and 2031. The agreement was signed in Shanghai and highlights QatarEnergy's commitment to leading in the global LNG market and supporting the transition to cleaner energy. QatarEnergy is also exploring additional vessel orders with South Korean shipyards.

[SLOW] Shipping Market - Gas _ LNGC frieght indices by routes