• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 6 mins Joe Biden's Presidency
  • 3 hours Biden suspends oil and gas drilling on Federal Lands for 60 days for review.
  • 2 hours SUVs are conquering the world
  • 8 hours 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 11 hours BIG TECH or BIG BROTHER?? 1984 to Become Reality ??
  • 1 day Jim Rickards: Brace for a Great Escape from the Dollar and a Flood of Money into Gold and Bitcoin
  • 1 day China sends warplanes thru Taiwan airspace. Joe's reponse . . . .
  • 9 hours Rejoining Paris Climate Accord is Devestating
  • 29 mins Parler’s New Partner Has Ties to the Russian Government
  • 12 hours Bankruptcy in the Industry
  • 16 hours Aramco in Talks on $2 Bln Loan from Japan
  • 1 day The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 1 day GENERAL NORMAN SCHWARZKOPF: The Third Tour
Is Brazil A Threat To OPEC?

Is Brazil A Threat To OPEC?

Brazil’s flourishing oil boom is…

Editorial Dept

Editorial Dept

More Info

Premium Content

Shipping Costs Could Soon Soar

Market Movers

- The International Maritime Organization’s new fuel rules begin on January 1 and reduce the limit on sulfur in fuel oil from 3.5% to 0.5% - a figure that could have a major impact on markets, even if ships only constitute between 5% and 7% of global transport oil demand. This will spark significant competition for low-sulfur fuel that refineries aren’t set up to produce. For investors, it could be a lucrative new game of hedging the right bets. Analysts cited by WSJ predict that the $350-per-metric ton gap between prices of very-low-sulfur fuel and high-sulfur fuel could wide to $1,000 in 2020. That means shipping costs could skyrocket before everyone has a chance to adjust. We can already see the market responding as prices of Abu Dhabi’s Murban crude grade dropped over the past week as refiners sought out lower-sulfur marine fuel. On Thursday last week, Murban was trading at a discount of $0.15 to its OSP, compared to a premium of $0.25 to the OSP just days earlier.

Discovery & Development

- On December 20th, Guyana officially produced its first-ever oil, courtesy of ExxonMobil in the offshore Stabroek Block. Output in the first phase of production is set to reach 120,000 bpd, with first cargo to be sold in a couple of weeks. By 2025, production is expected to hit 750,00 bpd.

- Saudi Arabia and Kuwait have signed a deal on their Neutral Zone to end a five-year dispute and reopen oil fields that have the potential…





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News