2024.11.12

"US Crude Exports to China Rebound, But Growth Outlook Remains Weak"

U.S. crude oil exports to China rebounded in September and October after hitting a four-year low, but future growth looks uncertain due to China's weak demand and preference for cheaper, sanctioned oil from Russia, Iran, and Venezuela. China’s economic slowdown and shift to alternative energy sources further dampen prospects for U.S. oil exports.

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"Saudi Crude Oil Supply to China Drops Amid Weak Demand"

Saudi Arabia’s crude oil supply to China is projected to decrease to 36.5 million barrels in December, marking a second consecutive monthly decline due to low demand. This drop follows reduced refinery output and weaker profit margins in China. Major Chinese refiners like Sinopec and PetroChina are cutting imports, and Saudi Aramco has lowered December prices for Asia. Saudi Arabia remains China’s second-largest oil supplier, though exports to China have fallen by nearly 11% this year compared to last.

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"Oil Prices Drop Amid Disappointing Chinese Stimulus and Rising Supply Projections"

Oil prices declined by over 2% due to investor disappointment with China’s latest stimulus, which fell short of expected demand boosts. Brent crude settled at $71.83 per barrel, while WTI dropped to $68.04. A stronger U.S. dollar also weighed on prices, making oil costlier for non-dollar holders. China's inflation and deflation concerns, along with the outlook for increased non-OPEC supply in 2025, added to bearish sentiment. Additionally, OPEC+ plans to delay supply increases until January, while U.S. offshore production gradually resumes post-Hurricane Rafael.

[SLOW] Oil Market _ Oil Price

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India and Saudi Arabia Lead Russian Fuel Oil and VGO Imports in October

 In October, India and Saudi Arabia were the largest importers of Russian fuel oil and vacuum gasoil (VGO), with total exports from Russia declining 3% from the previous month to around 4.15 million tons. Russian fuel oil exports to Saudi Arabia fell by 9% due to reduced seasonal demand, while exports to India surged by 56%. China's imports dropped by 35%, partially due to potential tax changes impacting its independent refiners. Meanwhile, 0.5 million tons of heavy oil products are headed to Singapore, often used as a waypoint for cargoes destined for Asia.

[SLOW] www.slowspace.io_trade flow

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Dynacom Tankers Expands LR1 Fleet with New Panamax Orders at Yangzijiang Shipbuilding

Greek shipowner Dynacom Tankers, led by George Procopiou, has added four more 75,000-dwt LR1 panamax product tankers to its orderbook at China’s Yangzijiang Shipbuilding, bringing its total LR1 orders there to six. The first deliveries are scheduled for 2026, with additional deliveries in 2028. Dynacom also has six LR1s under construction at New Times Shipbuilding for delivery between 2026 and 2027. Recently, Dynacom ordered four suezmax tankers from Samsung Heavy Industries, with delivery by 2027. Yangzijiang, relatively new to the LR1 market, has 24 panamax product carriers in its orderbook.

[SLOW] www.slowspace.io_FLOW

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"Shipping Markets Hit Year’s Low Amid Softness in Tanker and Gas Carrier Rates, Clarksons Reports"

Shipping markets have dropped to their lowest levels of 2024, with tanker and gas carrier earnings falling. Clarksons' ClarkSea Index dropped 3% to $22,514 per day, still above the 10-year trend. Crude tanker rates fell 12%, and product tanker earnings dropped 16%. VLGC and LNG carrier rates also weakened due to oversupply. However, Capesize bulk carriers saw a 26% increase in earnings. Container shipping rates rose due to pre-Lunar New Year demand. Clarksons warned of potential further declines and complexities in seaborne trade amid the U.S. election's uncertain impact.

[SLOW] Daily VLCC Market