2024.09.11

Nanjing Tanker advances fleet renewal with new order at parent yard

Nanjing Tanker, a subsidiary of China Merchants Group, continues its fleet renewal by ordering an 18,000-dwt oil and product carrier from China Merchants Jinling Dingheng shipyard in Yangzhou, to be delivered in 2027. The move aims to optimize its chemical fleet capacity and improve market share in chemical transportation. The contract is valued at CNY 246.5 million ($34.7 million) and was made after market research and assessment of shipbuilding capacity. Nanjing Tanker’s fleet of 60 owned vessels, including two LRs, several MRs, handysize ships, and small bunker vessels, with a total capacity of 2.13 million dwt. The company has been modernizing its fleet, receiving eight new ships from Chinese shipyards since 2020.

[SLOW] Tanker Fleet Study MR Top 30 shipowners by number of vessels

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

China's daily crude imports hit 1-year high in August on lower prices

China's daily crude oil imports surged to 11.56 million barrels per day (bpd) in August, the highest in a year, as lower crude prices and improved refining margins spurred a tentative recovery. Despite total shipments for the month being down 7% year-on-year due to low fuel demand, imports increased from July's 42.34 million tons. Independent and state-owned refineries raised processing levels in response to declining crude prices, despite seasonal maintenance. China's annual oil demand growth has slowed, and LNG use in trucks is expected to reduce diesel consumption by up to 140,000 bpd in 2024-2025. Year-to-date crude imports fell 3.1% compared to the same period last year.

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[SLOW] Oil Market Northsea oil price Urals

Russian Urals drops below $60 price cap

The price of Russia's Urals oil fell below the $60 per barrel Western price cap on Tuesday, driven by declining global oil prices, particularly weak demand from China and concerns of oversupply. Urals oil loading from Baltic ports was priced at $59.89 per barrel, while cargoes from the Black Sea port of Novorossiysk remained slightly above the cap at $60.33 per barrel, according to Reuters calculations. The price cap, imposed by the G7 and Australia as part of sanctions against Russia, restricts the use of Western services like shipping and insurance for Russian crude sold above $60 per barrel. Despite this drop, Urals oil prices have remained largely above the cap throughout 2024.

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[SLOW] https://slowspace.io/ _ Danish Straits

Russian trading tankers rejecting Danish pilots raises safety concerns in Baltic sea

The number of Russian-trading tankers refusing Danish pilot assistance has surged, heightening the risk of accidents in Danish waters. A study by Danwatch and Bloomberg found that 20% of these typically older tankers navigated the Baltic Sea without pilots between April and July, compared to just 4% a year earlier. The Baltic Sea's challenging conditions, such as sandbanks and strong currents, make pilotage critical. Despite this, nearly 1,200 tankers carrying Russian crude have passed through since early 2023. Many of these vessels operate outside mainstream chartering and insurance sectors. Danish pilots have also criticized the poor condition of some ships, with Denmark investigating a collision involving the Andromeda Star, a tanker transporting Russian crude, earlier this year.

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[SLOW] Oil Rig Count _ South America

South America's rise in oil production drives demand for crude tankers amid refining capacity shortages

South America's growing oil production, especially in Argentina, Guyana, and Suriname, is outpacing the region's refining capabilities, presenting an opportunity for crude tankers. According to Gibson Shipbrokers, oil supply in South America is expected to rise by 1.3 million barrels per day, while refining capacity will only increase by 100,000 barrels per day. This imbalance is pushing most of the new oil production toward exports, benefiting crude tanker demand. Argentina plans to begin VLCC exports by 2026, with Guyana and Brazil also ramping up production. Despite these positive developments, South America's refining sector has struggled to progress, with challenges such as economic volatility in Brazil, recession in Argentina, and sanctions in Venezuela limiting demand growth. Crude tankers stand to gain more from these trends than clean tankers

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[SLOW] https://slowspace.io/ _ Distance

US Gulf Coast residents evacuate, oil production halted as tropical storm Francine strengthens

Tropical Storm Francine is projected to intensify into a Category 1 hurricane, threatening the Louisiana coast with damaging winds, heavy rains, and storm surges. As a precaution, Gulf Coast residents are fleeing inland, and oil and gas companies have shut down production, affecting 24% of the U.S. Gulf oil output - 412,070 barrels per day - and 26% of natural gas production. Over 130 offshore platforms were evacuated, while energy firms like Exxon Mobil and Shell curtailed operations. The storm's path could impact major LNG export plants, with Cameron LNG already reducing natural gas intake. Ports in Texas and Louisiana have restricted operations, and the storm is expected to move into Mississippi after landfall. Despite concerns over production shut-ins, global oil demand worries led to a drop in U.S. crude futures.

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APPEC 2024 : India’s ONGC Videsh prioritizes producing oil and gas assets as energy transition progresses

ONGC Videsh, the overseas investment arm of India's Oil and Natural Gas Corp (ONGC), is prioritizing stakes in oil and gas producing assets as the global shift to renewable energy is expected to reduce demand for conventional fuels. According to Anupam Agarwal, head of finance at ONGC Videsh, the company is focusing less on exploration projects, except for ongoing ones, and more on acquiring assets that are already producing or near production. The energy transition, particularly in countries like China and India, is impacting the demand for oil, with China’s oil product demand peaking in 2023 and India looking to switch a third of its truck fleet to liquefied natural gas. Additionally, higher demand for services and equipment has affected capital expenditure plans for developing projects. As the world's third-largest oil importer, India aims to increase domestic oil and gas production from existing and new fields.