2024.10.02

Houthis resume attacks on shipping in Red Sea: two vessels targeted

The Houthi has resumed attacks on commercial vessels in the Red Sea, targeting two ships on Tuesday. The 163,300-dwt tanker Cordelia Moon was hit by a sea drone, damaging its ballast tank, while the 76,800-dwt Greek-controlled Minoan Courage was also attacked, reportedly by a missile or sea drone. These incidents mark the first Houthi assaults on shipping since September 1, 2023. The Houthis confirmed their attack on the Cordelia Moon and claimed responsibility for a separate strike on the Greek vessel Marathopolis, which remains unverified. These events follow escalating tensions in the Middle East, including recent Israeli airstrikes on Hodeidah and Houthi missile attacks on US warships.

[SLOW] https://slowspace.io/ _ MT CORDELIA MOON

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[SLOW] EIA - Crude Oil Outlook _ OPEC oil supply outlook

OPEC crude output drops in September amid Libyan crisis, but market awaits rebound

OPEC's crude production fell significantly in September, dropping by 480,000 barrels per day to 26.61 million bpd, largely due to a 38% decline in Libyan output caused by political strife. The disruption in Libya inadvertently supported OPEC's strategy to limit production and stabilize prices, though Libya is preparing to restart production following a compromise between its rival factions. Despite these events, oil prices remain under pressure, falling 17% since July due to weakening demand in China. OPEC+ is expected to maintain its current output policy following a review by its Joint Ministerial Monitoring Committee (JMMC). Iraq slightly improved its compliance with production cuts, while the UAE exceeded its target, raising concerns about overproduction within the group.

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[SLOW] https://slowspace.io/ Guyana FPSO Liza

Major energy firms compete for Guyana’s oil marketing contract

Guyana has attracted bids from 27 major energy companies, including Shell, Chevron, TotalEnergies, and ADNOC, for a 12-month contract to market the government's share of crude oil. The contract will cover the sale of crude from projects operated by a consortium led by ExxonMobil. Guyana's light sweet crude grades, including Liza, Unity Gold, and Payara, have been highly sought after since the country began oil production in 2019. The government expects to market around 23 cargoes of 1 million barrels each over the next year, depending on production rates. Current contracts are held by JE Energy and BB Energy for the Liza 1, Liza 2, and Payara projects.

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[SLOW] Oil Rig Count _ Global : oil rig count

Shale production costs set to rise 2.8% in 2025 as drilling activity rebounds

US shale drillers are expected to see a 2.8% increase in production costs in 2025, following a drop of 6.3% this year, according to industry consultant Enverus. The current reduction in drilling and fracking activity, combined with efficiency improvements, has driven costs down in 2023. However, an anticipated surge in natural gas exploration and the extension of horizontal wells (longer laterals) are projected to push costs higher by 2025. This trend follows a 6% decline in the number of onshore rigs drilling for oil and gas in the US since the start of the year, alongside corporate consolidations and technological advancements.

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[SLOW] Tanker Fleet Study _ VLCC fleet growth

MOL revives Japanese VLCC orders with two LNG dual-fuel newbuilds in China

Mitsui OSK Lines (MOL) has placed an order for two 309,000-dwt LNG dual-fuel VLCCs at Dalian Cosco KHI Ship Engineering (Dacks) in China, marking Japan's return to VLCC orders. Each vessel is priced just under $150 million, about 15% higher than MOL's previous orders due to the additional costs of LNG dual-fuel technology. MOL's total VLCC newbuildings at the Sino-Japanese yard now stand at six. The latest ships will be delivered between Q3 2027 and Q1 2028. This order highlights the surge in VLCC contracts driven by the need to replace aging fleets and optimism in the oil shipping market.

[SLOW] Weekly Dirty Tanker Research _ VLCC newbuilding price

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‘Zombie’ VLCC identified as former Angelicoussis Tanker grounded in 2022

A mysterious VLCC, which had reportedly been scrapped in 2021, has resurfaced under a false identity. The 336,300-dwt EM Longevity—allegedly demolished in Bangladesh—appeared in China carrying a crude oil cargo. However, it is now believed that the vessel is actually the 306,300-dwt Stellar Oracle, a tanker previously owned by Greece’s Angelicoussis Group and sold to East Wind Ship Management in 2021. The Stellar Oracle is masquerading as the defunct EM Longevity, likely to obscure a recent journey from Iran to China.

The ship, which previously grounded off Indonesia in 2022 under the name Young Yong, has a dubious recent history. Last tracked in the Bay of Bengal in August 2023, the tanker recently arrived in Yantian, China, after a passage past Iran. These movements suggest it may be part of a "dark fleet" engaging in sanction-evasive operations. The vessel’s AIS system shows misleading flags and information, including an Eswatini flag used without permission.

The Stellar Oracle represents a growing trend of defunct vessel identities being reused to mask illicit shipping activities, including sanction breaches.