2024.10.01

Red Sea shipping faces heightened risks as Houthi attacks escalate and Israel begins ground raids

Shipping operators are being urged to closely examine vessels' trading histories for any links to Israel before passing through the Red Sea due to increased threats from Yemen’s Iran-backed Houthi rebels. The updated safety guidance highlights the rising danger of Houthi attacks, including water-based sea drones, missiles, and drifting mines, especially following Israeli airstrikes on Hodeidah in response to Houthi missile attacks. Vessels from companies that have traded with Israel in the past three years are at higher risk, though some ships have been targeted erroneously due to outdated or inaccurate information. The guidance, issued by shipping associations such as Bimco and Intertanko, calls for thorough threat assessments, advising caution near Yemeni waters and highlighting that turning off Automatic Identification Systems (AIS) does little to prevent detection.

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Fires on Greek tanker in Red Sea finally extinguished after month-long battle

Fires on the Greek oil tanker Sounion, attacked by Houthi rebels in the Red Sea, have been largely extinguished after over a month of burning. The Sounion, carrying 1 million barrels of Iraqi crude, was first attacked on August 21 by gunfire, sea drones, and missiles, with the crew abandoning the vessel. Houthi forces boarded the tanker, detonating explosives that ignited multiple fires along the deck. Salvage teams, under naval escort, managed to tow the tanker to a safer location for firefighting, which began on September 23. International experts have now successfully brought most of the fires under control.

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[SLOW] https://slowspace.io/  CPC Marine Terminal Cargo Flow

Black Sea CPC blend oil reaches 7-year premium

The price of Black Sea CPC Blend oil has surged to a 7-year high premium against dated Brent due to a supply drop in October. This shortage is mainly driven by the maintenance of Kazakhstan's massive Kashagan oilfield, which will be suspended for 38 days starting in early October. October CPC Blend oil loadings from Russia's Black Sea port of Yuzhnaya Ozereyevka are projected to be around 1.1 million barrels per day (bpd), representing a 17% decrease compared to exports in September. Strong demand in the Mediterranean region, coupled with the supply decline, has pushed CPC Blend cargoes to a $0.50 per barrel premium, the highest since 2017. Despite the rise, market sources expect prices to stabilize if November supply increases.

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[SLOW] https://slowspace.io/ Trade Flow Indian seaborn CPP/Chem exports by destination regions

India's oil-product exports surge amid European refinery maintenance

India’s oil-product exports rose sharply in September, reaching their highest level since March 2022, as refinery shutdowns in Europe created a demand spike. Exports of diesel, gasoline, and jet fuel climbed to 1.5 million barrels per day, a 39% year-on-year increase, according to Bloomberg. While Indian refiners mainly serve domestic needs, they also export to meet global demand. European refinery maintenance, combined with poor margins last month, led to reduced supplies, particularly affecting exports to Africa. India’s oil-product shipments to Africa hit a record 380,000 barrels per day.

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[SLOW] https://slowspace.io/ _ Equatorial Guinea

Equatorial Guinea aims for oil output recovery after ExxonMobil’s departure

Equatorial Guinea, OPEC’s smallest member, plans to revitalize its oil and gas production following ExxonMobil's exit earlier this year, transferring key assets like the Zafiro oil field to the state-owned GEPetrol. Crude production has halved over the past five years, dropping to 70,000 barrels per day in August. The government aims to boost output, starting with the redevelopment of the Zafiro Field in 2025. To support this effort, a $350 million contract was awarded to Petrofac Ltd., with additional help from other companies, including Chevron, Marathon Oil, and Kosmos Energy. The country is also expanding its offshore Gas Mega Hub to increase liquefied natural gas and methanol production. Recent tax reductions are intended to attract further investment into the sector.

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[SLOW] EIA - Crude Oil Outlook _ US SPR crude oil inventory outlook

US purchases 6 million barrels of oil to replenish strategic petroleum reserve

The U.S. Department of Energy has acquired 6 million barrels of sour crude oil to replenish the Strategic Petroleum Reserve (SPR), with deliveries scheduled between February and May 2025. This move follows the 2022 sale of 180 million barrels ordered by President Biden to manage fuel prices amid Russia's invasion of Ukraine. The purchase includes 3.5 million barrels from Exxon Mobil, 2 million from Shell, and 500,000 from Macquarie Commodities, totaling over $411 million. After these deliveries, the SPR has funds left to buy about 2 million more barrels at about $75 per barrel, with further purchases requiring additional congressional approval or the cancellation of upcoming mandated sales.