2024.09.25
- SLOW
- 2024년 9월 25일
- 5분 분량
Russian ESPO blend oil reaches premium as Chinese demand rises, easing Indian purchases
Russia's ESPO Blend oil grade has climbed to a premium over Brent for the first time since November 2023 due to increased demand from Chinese refiners, according to trade sources. ESPO cargoes loading in November are trading at a premium of $0.20 to $0.50 per barrel, reversing the discounts seen earlier this year. Yulong Petrochemical, China's newest private refiner, recently launched a 200,000 barrels-per-day crude unit and stocked up on Russian oil ahead of its startup. State trader Unipec, the trading arm of Sinopec, has also increased ESPO Blend oil purchases, securing around 10 cargoes for October. This increased demand from major Chinese refiners has pushed ESPO prices up, squeezing smaller "teapot" refiners. Despite higher prices, Chinese refiners are maintaining interest due to relatively low freight costs, which averaged $1.35 million per voyage in September. However, rising costs have led Indian refiners, also key buyers of Russian Urals oil, to reduce ESPO purchases. A source indicated that Indian refineries now consider ESPO Blend too costly and are unlikely to purchase it, opting instead to substitute it with oil grades from West Africa.
[SLOW] Oil Market Asia Oil Price ESPO
------------------------------------------------------------------------------------------------
Repsol joins Brazil's Porto do Acu to boost crude exports amid expanding oil production
EIG Global Energy Partners has secured Spanish oil major Repsol SA as a client for its Porto do Acu facilities in Brazil, marking a significant boost to its oil transshipment operations. Managed by EIG-controlled Vast Infraestrutura, the terminal already handles about half of Brazil's oil exports and is well-positioned near two major offshore oil basins. Repsol becomes Vast's 11th client, joining other industry giants like Petrobras, Shell, and TotalEnergies. With Brazil's oil production expected to grow, exports could rise to 3 million barrels per day by 2030, as domestic refining capacity remains limited. This surge highlights Brazil's increasing role in the global oil market, especially outside OPEC+.
[SLOW] https://slowspace.io/ _ Porto do Acu
------------------------------------------------------------------------------------------------
US and Canada to negotiate Arctic seabed boundary for potential oil reserves
The US and Canada have agreed to initiate negotiations over their overlapping claims to an Arctic seabed in the Beaufort Sea, which may contain significant oil reserves. The area, located north of Alaska, the Yukon, and the Northwest Territories, has gained strategic importance as climate change makes the Arctic more accessible, attracting attention from Russia and China. A joint task force between the US State Department and Global Affairs Canada will work toward defining the maritime boundary and resolving the dispute. The talks are part of a broader effort to secure control over valuable Arctic resources.
------------------------------------------------------------------------------------------------
Metrostar secures impressive time charter deal with Aramco Trading for newbuilding
Greece’s Metrostar Management has reportedly secured a five-year time charter with Aramco Trading for its newbuilding, the 114,934-dwt Metro Bosphorus, which was built in 2024. The vessel will earn approximately $38,000 per day upon delivery this week, which is notably higher than the average rate of around $34,500 for eco LR2s with scrubbers. The deal also includes a swap, allowing Metrostar to take back the 115,643-dwt Prostar six to seven months early, reducing Aramco's daily payments by $5,500. Metrostar paid $63 million for the Metro Bosphorus, and the charter agreement is expected to cover the vessel's cost over five years. The transaction reflects a strategic move by Aramco to mitigate exposure to tanker market volatility during a period of uncertainty. Metrostar has a history of active asset management, having conducted over 200 vessel transactions since its inception in the 1990s.
[SLOW] LR2 Market Monitor _ LR2 TCE comparison by routes
------------------------------------------------------------------------------------------------
Potential contango raises hope for tanker owners but limits storage boom
BRS Shipbrokers predicts that the oil market is heading toward a state of contango, where future oil prices rise above current ones. While this could boost tanker rates, especially after recent price weakness due to concerns over Chinese demand and a possible US recession, it’s unlikely to lead to a major floating storage boom like the one seen during the 2020 price war. Contango could still support tanker markets by encouraging oil inventory rebuilding, which might slow shipping speeds, but the overall impact will be limited. Currently, tanker rates are declining after previous rises this month.
[SLOW] Oil Market _ Benchmarks
------------------------------------------------------------------------------------------------
[SLOW] Weekly Clean Tanker Research _ LR2 secondhand price by ages
Scorpio and Capital Maritime sell tankers to Pertamina International Shipping
Shipowners Emanuele Lauro and Evangelos Marinakis have capitalized on strong product tanker values by selling secondhand vessels to Indonesia's Pertamina International Shipping. Scorpio Tankers sold the 109,000-dwt STI Lily, built in 2019, while Capital Maritime's 109,900-dwt Alkinoos is also heading to Pertamina, with both vessels fetching prices between $73.5 million and $74 million. Pertamina aims to grow its fleet to 500 tankers and gas vessels by 2034, and CEO Yoki Firnandi emphasized the need for international expansion beyond the domestic market. The company is expected to launch a tender for new LR2 tankers soon, complementing its growth strategy.
------------------------------------------------------------------------------------------------
[SLOW] Weekly Dirty Tanker Research _ VLCC secondhand price by ages
Advantage Tankers sells VLCC in thriving market
Advantage Tankers has sold its oldest VLCC, the 296,500-dwt Advantage Virtue, as the sale-and-purchase market for such vessels heats up. Although the company did not disclose the sale price or buyer, Greek brokers report the ship was acquired by Chinese interests for $51 million. Built in 2009 at Bohai Shipbuilding Heavy Industry, the Advantage Virtue recently passed a special survey but lacks a scrubber. This sale aligns with Advantage Tankers' strategy as they await the delivery of five suezmax and two LR1 product tankers, set to join their existing fleet of 24 vessels.
The buyer is speculated to be either China Merchants Group, which owns several sister ships, or UAE-based Harry Victor Ship Management & Operation. The VLCC market has shown price stability recently, with average prices for 15-year-old VLCCs holding at $58 million since February, down from $60 million in the first half of 2023. The stabilization of VLCC values, coupled with recovering freight rates, has reinvigorated the secondhand market, with notable sales activity observed in recent months.
------------------------------------------------------------------------------------------------
Trafigura Appoints LNG Expert Richard Holtum as New CEO
Trafigura has announced that Richard Holtum will be the new chief executive, taking over from Jeremy Weir in the new year. Holtum, who has been with the company since 2022 as the head of gas, power, and renewables, has a track record of building high-performing teams and expanding Trafigura's gas and renewables business. Non-executive director Sipko Schat highlighted Holtum's vision and expertise as key to leading the company through its next phase of growth. Weir will transition to the role of chairman.
Comments