2024.11.06

[SLOW] https://slowspace.io/ Distance Hurricane Rafael

US Gulf oil & gas producers brace for storm Rafael, halting production

Ahead of Tropical Storm Rafael, expected to intensify into a Category 1 hurricane, oil and gas companies in the U.S. Gulf of Mexico are taking precautionary steps by shutting down offshore production and evacuating personnel. Chevron, Equinor, BP, and Shell have either halted production or secured facilities to minimize risks. The storm could result in an estimated loss of 3.1 to 4.9 million barrels of oil and between 4.56 to 6.39 billion cubic feet of natural gas. As concerns grew, U.S. oil futures rose by around 1% to $72.10 per barrel. Meanwhile, Texas' Freeport port suspended inbound vessel traffic as rough offshore conditions developed.

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[SLOW] https://slowspace.io/ Flow Iranian NIOC Kharg island terminal statistics

Iranian oil prices surge for Chinese buyers as exports drop

Iranian crude discounts to China have narrowed to their tightest level in five years as decreased exports and Middle East tensions push prices higher, impacting China's independent "teapot" refineries. These refiners, which import Iranian oil at discounts, now face slimmer profit margins and potential production cuts. In October, export volumes fell due to loading delays at Iran's Kharg Island hub and fears of potential Israeli retaliation, although actual attacks did not materialize. Pipeline issues and rising Saudi oil prices have further constrained supply, raising the cost of Iranian Light crude to around $3.80 per barrel below the Brent benchmark for November. Despite sanctions, Chinese refiners continue purchasing Iranian oil, sometimes relabeled to circumvent restrictions.

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[SLOW] Daily VLCC Market _ VLCC TCE comparison by routes

OPEC+ production hike could spur demand for 55 new VLCCs, boosting 2025 tanker outlook

OPEC+’s anticipated gradual production hike, delayed until January, is expected to add 2.2 million barrels per day to the market over a year, potentially creating demand for around 55 additional VLCCs if Middle Eastern crude flows eastward. Tankers International views this as a strong positive for the VLCC market, which has recently struggled with low rates and vessel overcapacity. Breakwave Advisors highlights that current oversupply in the oil market, coupled with high vessel availability, keeps freight rates low. However, the eventual supply increase may bring contango pricing, where future oil prices exceed spot prices, supporting higher freight rates and demand for tanker tonnage in a trend reminiscent of the 2015-2017 period.

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[SLOW] LR2 Market Monitor _ Global : weekly lifting LR2 count

Ample Middle East supply drives down product tanker rates

Product tanker rates have declined sharply, particularly in the Middle East, where ample ship availability and reduced chartering activity are keeping rates low. LR2 and LR1 tanker rates fell by 15.7% and 9.3%, respectively, with Middle East-to-Japan earnings dropping to $15,456 per day for LR2s and $12,906 for LR1s. Meanwhile, MR tankers in the U.S. Gulf saw a rate increase, rising by nearly 42% to $36,600 per day. The broader tanker market faces headwinds as oil demand growth in Q4 remains slower than anticipated. However, increasing Asian demand, especially for jet fuel, has lifted the Singapore-Dubai crack spread, signaling stronger refinery margins that could benefit product tankers. With OPEC+ delaying production increases, tanker rates may continue to face pressure into 2025.

[SLOW] Oil Market _ Refinery Margin

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Chinese buyers outbid Greeks for Japanese-owned VLCC Taiga in $45m deal

Chinese buyers have reportedly won a bidding contest with Greek counterparts for the VLCC Taiga, a 311,110-dwt vessel owned by Japan's Meiji Shipping Co, purchasing it for $44–$45 million. The final price is close to VesselsValue’s estimate of $44.9 million but at the lower end of MSI Horizon’s range of $44.5–$52.4 million. This sale follows comparable recent transactions, such as Phoebe (311,110 dwt, built 2005) sold for $40 million and Gesi (305,700 dwt, built 2007) sold for $43.3 million. Market observers note that the Chinese offer surpassed initial bid estimates of $41–$42 million, signaling competitive demand for VLCCs among buyers in a tightening tanker market.

[SLOW] https://slowspace.io/ Ship Database MT Taiga

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Greek VLCC Nissos Rhenia undergoes repairs off Portugal coast after engine breakdown

The Greek VLCC Nissos Rhenia, operated by Okeanis Eco Tankers, lost propulsion off the coast of Portugal and is currently undergoing repairs at sea. The 319,000-dwt tanker, en route from Jubail, Saudi Arabia, to Le Havre, France, broke down 36.6 km from Viana do Castelo. Portugal’s navy dispatched the corvette NRP Antonio Enes to secure a tow line and monitor surrounding navigation. Local authorities and technicians are overseeing complex at-sea repairs, expected to take several days. Despite the incident, inspections by port state control have found no deficiencies in the vessel, which is insured by Norway’s Gard.

[SLOW] https://slowspace.io/ _ MT Nissos Rhenia