2024.10.23

Oil prices rise by 2% amid middle east tensions and tightening supply

Oil prices climbed for a second consecutive session as concerns over middle east instability and potential supply disruptions outweighed hopes for a ceasefire. Brent crude rose by 2.4% to $76.04 per barrel, while u.s. West texas intermediate (wti) gained 2.2% to $72.09. market focus shifted to rising chinese demand, with beijing's economic stimulus measures leading to optimism about increased oil consumption. Analysts expect china's crude imports to rise, potentially tightening global supplies. U.s. Crude stocks increased by 1.64 million barrels, while gasoline and distillate stocks dropped. In the middle east, ceasefire efforts remain stalled as israel continues its military actions, raising further market uncertainty.

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[SLOW] Oil Price Monitor

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China Increases 2025 Crude Oil Import Quota for Non-State Firms to 257 Million Tons

China has raised its 2025 crude oil import quota for non-state-owned companies to 257 million metric tons (5.14 million barrels per day), up from 243 million tons in 2024, according to the commerce ministry.

The increase is driven by the launch of Shandong Yulong Petrochemical's new refinery, which requires crude imports to operate.

The first batch of quotas will be issued by the end of 2024, with adjustments made based on company demand and capacity.

Firms without import activity in the past two years will not receive quotas.

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[SLOW] https://slowspace.io/  Trade Flow _ China Import Crude oil Statistics

Crude Tanker Rates Surge Amid Record U.S. Exports to Rotterdam and Market Optimism

U.S. crude exports to Europe, especially Rotterdam, have reached a record high of 1.36 million barrels per day, driving up tanker rates. 

This surge is fueled by the widening Brent-West Texas Intermediate (WTI) price spread, with WTI being the cheapest in the Brent basket.

Tanker rates for routes like Galveston to Rotterdam are up, with vlccs earning over $46,000 per day and Aframaxes surpassing $48,000 per day.

 The market's recovery is supported by sentiment-driven optimism, shrinking vessel supply, steady oil demand, and Petrobras’ plan to maximize output.

Geopolitical tensions and shifting trade patterns are expected to sustain rate volatility and support freight rates in the medium to long term.

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[SLOW] https://slowspace.io/ _ Crude oil  Trade Flow from USA to Rotterdam

Rising Lightness of U.S. Permian Crude Could Dampen Refinery Demand

As drilling in the U.S. Permian Basin yields lighter crude, refineries face challenges in processing West Texas Intermediate (WTI) Midland crude.

The lighter oil, now with a gravity of 41-44 degrees, is less suited to produce high-demand fuels like diesel and jet fuel.

Refineries are optimized for heavier grades, and adapting to process super-light crude would require costly equipment upgrades.

Without enough heavy crude to blend with lighter WTI Midland, demand may drop, potentially lowering its price and weakening the global Brent benchmark.

Industry experts warn that continued lightening could reduce its appeal to refiners, especially in Asia and Europe.

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Fire Breaks Out on Turkish Tanker off Singapore, All Crew Safely Evacuated

A fire broke out in the engine room of the Turkish tanker Med Atlantic (26,200 dwt) while anchored in Singapore's East Johor Strait.

The Maritime & Port Authority of Singapore (MPA) quickly mobilized firefighting and rescue teams, and all 22 crew members safely evacuated.

The fire, which started in the vessel’s chimney stack, was extinguished without injuries or significant damage to the engine room.

The Med Atlantic, operated by YMN Tanker Marine Management, remained anchored, and there was no disruption to nearby vessel traffic.

The Singapore Food Agency advised nearby fish farms to take precautions, while initial findings suggest localized fire damage.

The tanker had previously been detained in Romania in 2023 for deficiencies related to oil pollution and safety drills.

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