2024.10.26

Oil Prices Drop Amid Israel's Limited Retaliation, Reducing Geopolitical Tensions

Oil prices fell nearly $4 a barrel after Israel’s airstrikes on Iran avoided Tehran’s critical oil and nuclear infrastructure, alleviating fears of disruptions in energy supplies.

Brent crude dropped by 5.1% to $72.16 per barrel,

and U.S. West Texas Intermediate declined by 5.2% to $68.02.

The strikes, targeting missile factories and other sites,

were seen as restrained, raising hopes for de-escalation.

This contrasts with last week’s volatility, where concerns over the extent of Israel’s response and the upcoming U.S. election had driven a 4% increase in oil prices.

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India’s Crude Oil Imports Fall to 7-Month Low Amid Export Surge but product exports soar

In September, India’s crude oil imports dropped 8% to 18.56 million metric tons, the lowest since February, due to decreased domestic demand from above-normal monsoon rains.

Conversely, product exports surged 34.6% to 6.49 million tons, the highest in 2.5 years, with diesel exports up 28%. Notably, imports from Russia rose by 11.7%, making up about 40% of total imports.

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

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Asian Spot LNG Prices Climb Amid Supply Concerns and Geopolitical Tensions

Asian LNG prices saw a second consecutive weekly increase, reaching $13.80 per mmBtu for December delivery, driven by supply concerns tied to Middle East and Ukraine tensions and reduced U.S. output due to terminal maintenance. European gas prices also spiked, with TTF hub prices at a 10-month high, and Norwegian supply disruptions further supporting prices. Lower Atlantic and Pacific freight rates, at five-year lows, are pushing more Atlantic cargoes toward Asia.

[SLOW] https://slowspace.io/_Oil Market

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VLCC Freight Rates May Rise Amid Ras Tanura Port Delays, Despite Demand Concerns

VLCCs are experiencing extended stays at Saudi Arabia's Ras Tanura terminal, with port days up 177% over the month. This increase may signal potential congestion and a rise in freight rates if vessel delays persist, even as recent congestion metrics have shown a 25% improvement. While rates to Asia are currently stable at around $35,200 per day, future rate boosts depend on sustained demand from China, whose oil demand outlook has recently been revised down by the IEA. If Chinese demand remains sluggish, this could temper rate increases despite short-term momentum.

[SLOW] https://slowspace.io/_Analytics_Port Congestion

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d’Amico International Secures Second Profitable Two-Year Charter in Two Months

Italian shipowner d’Amico International Shipping (DIS) has secured a second two-year MR2 tanker charter within two months at rates expected to surpass spot prices. Starting in November or December, the unnamed vessel will operate under a profitable long-term contract, bringing DIS’s fourth-quarter time-charter coverage to 39% at an average of $27,100 per day. This deal, reflecting strong market interest in long-term charters, aligns with DIS's strategy of increasing its time-charter coverage. Recent spot rates, by comparison, were quoted at $18,800 per day, showing a clear premium for DIS’s longer-term agreements.

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New Mexico Considers Drilling Restrictions That May Cut Oil Output

A study indicates that proposed drilling restrictions in New Mexico could reduce future crude oil output by 5.4%, resulting in a loss of 12.5 million barrels in the first year and an annual revenue decline of up to $4.5 billion by 2034. The restrictions aim to protect public health by limiting drilling near residential and environmental areas. While industry leaders warn of negative impacts on oil development, environmental advocates argue the health benefits justify the potential revenue loss. The report will guide discussions in the upcoming legislative session, with setbacks expected to begin in 2026.