2024.12.18

UK sanctions 20 more tankers to target Russian oil exports, list surpasses 100 vessels

The UK has imposed sanctions on 20 additional tankers accused of transporting Russian oil, bringing the total number of sanctioned ships to over 100, including 93 tankers. Prime Minister Keir Starmer emphasized that these measures aim to disrupt Russia’s oil revenue and war efforts in Ukraine. Notable sanctioned ships include the Ocean Faye, Andaman Skies, and Mianzimu, which have transported over 4 million barrels of Russian oil in 2024. The UK also confirmed collaboration with Denmark, Sweden, Poland, Finland, and Estonia to scrutinize shadow fleet insurance along Baltic routes. Sanctions were further extended to Dubai-based 2Rivers DMCC and 2Rivers PTE for facilitating Russian oil trade. The European Union recently added 52 tankers to its sanctions list.

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Shadow fleet expands despite sanctions, now 13.8% of global tanker fleet: BRS

The shadow fleet of tankers carrying oil for sanctioned regimes continues to grow, now comprising 850 vessels, or 13.8% of the global tanker fleet, according to shipbroker BRS. These aging "grey" ships, primarily transporting oil for Russia, Iran, Syria, North Korea, and Venezuela, are increasing at a rate of 10 ships per month. Despite sanctions by the EU and G7, including a recent addition of 52 vessels to the EU’s list, the trading activity of these tankers remains largely unaffected. Russian oil exports persist near or below the G7 price cap of $70 per barrel, with a slight resurgence in mainstream tankers handling Russian crude. BRS predicts that weak oil prices could eventually reduce demand for shadow fleet tankers, potentially forcing some out of the market.

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Russia declares emergency as oil spill hits black sea after multiple tanker incidents

Russian authorities declared a state of emergency in two municipalities following a significant oil spill caused by two tanker incidents in the Kerch Strait during severe storms. On Sunday, the tanker Volgoneft 212 split in two and sank, resulting in one casualty. Simultaneously, the Volgoneft 239 ran aground and reportedly sank, with the vessels carrying a combined 9,200 tonnes of fuel oil. Cleanup operations are underway as oil has contaminated coastal areas of Temryuk and Anapa districts. Adding to the crisis, a third vessel, Volgoneft 109, issued a distress call on Tuesday near the port of Kavkas due to cargo tank damage, though no leakage occurred. Emergency services and volunteers continue efforts to contain the environmental impact.

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Kazakhstan pursues oil output increase amid OPEC+ tensions

Despite prolonged OPEC+ production cuts, Kazakhstan remains committed to raising oil output, targeting 97.2 million metric tons by 2025. Prime Minister Olzhas Bektenov has directed the Energy Ministry to intensify production efforts, backed by a $48.5 billion Chevron-led expansion at the Tengiz oil field, set to boost production starting mid-2025. This defiance risks straining relations with OPEC+ partners, including Russia and Saudi Arabia, who have pressured Kazakhstan to comply with agreed production cuts. Kazakhstan's planned increase of 190,000 barrels per day for 2025 far exceeds its OPEC+ allowance of 41,000 barrels. Yet, the country has struggled to meet past production targets, with 2024 output now forecasted at 87.8 million tons, below the initial 90.3 million-ton goal. Declining crude prices and missed targets have strained Kazakhstan’s economy, forcing the government to tap its national oil fund and prompting warnings from the IMF about fiscal vulnerabilities.

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European diesel imports set to drop despite record US shipments

Europe’s diesel imports are expected to fall to a multimonth low in December, despite a surge in shipments from the US. Imports are projected to be about 1.04 million barrels per day, 6% lower than in November and 8% lower than a year ago, making December the lowest level in ten months. The US has become a top supplier of diesel to Europe since the G7 banned Russian fuel purchases, with US shipments exceeding 470,000 barrels per day. However, this increase has been offset by reduced flows from the Middle East, due to refinery maintenance in countries like Saudi Arabia and India, leading to the lowest imports from the region in years. Despite this, Europe’s diesel supply may receive support from the end of autumn refinery maintenance and lower industrial demand in winter.

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Cosco expands LPG shipping fleet with new VLGC order

China Cosco Shipping, the world's largest shipowner with a $47bn fleet of over 1,000 vessels, has reportedly ordered two 87,000-cbm VLGCs at its Cosco Shipping Offshore (Qidong) shipyard. While pricing details remain undisclosed, similar vessels typically cost around $120m each, with delivery expected in Q4 2027. Despite its extensive fleet, Cosco currently operates only four LPG carriers, highlighting a strategic move to address growing domestic gas demand. The company has been gradually expanding in the LPG sector, adding mid-size gas carriers in recent years and debuting in the VLGC market in 2022 with the acquisition of the 83,000-cbm Gas Aries, renamed Chang Xing Yuan. This latest order aligns with its stated ambition to bolster its LPG shipping capacity.

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Trump transition team proposes major rollback of Biden EV and emissions policies

The Trump transition team is recommending a rollback of Biden's EV and emissions policies. Proposed changes include eliminating the $7,500 EV tax credit, halting the $7.5 billion plan for charging stations, imposing tariffs on battery materials, and relaxing emissions standards. The team also seeks to block California’s stricter emissions rules and focus on boosting U.S. battery production for defense purposes. These moves aim to shift away from Biden's EV transition in favor of supporting fossil fuel vehicles and national security priorities.