• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 3 hours Satellite Moons to Replace Streetlamps?!
  • 22 hours US top CEO's are spending their own money on the midterm elections
  • 37 mins EU to Splash Billions on Battery Factories
  • 35 mins U.S. Shale Oil Debt: Deep the Denial
  • 9 hours The Balkans Are Coming Apart at the Seams Again
  • 1 day OPEC Is Struggling To Deliver On Increased Output Pledge
  • 37 mins Owning stocks long-term low risk?
  • 9 hours The Dirt on Clean Electric Cars
  • 20 hours Uber IPO Proposals Value Company at $120 Billion
  • 10 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 22 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 10 Incredible Facts about U.S. LNG
  • 1 day U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
Rig Count Rises Amid Oil Price Recovery

Rig Count Rises Amid Oil Price Recovery

The active number of rigs…

Oil Prices Under Pressure As U.S. Shale Supply Soars

Oil Prices Under Pressure As U.S. Shale Supply Soars

Continued production growth in the…

50 Tankers Idle In Singapore, UAE Ports

Tankers

Around 50 oil product tankers are idling at the ports of Singapore and Fujairah, in the UAE, on the back of a slowdown in trade and an influx of new vessels, shipping data has revealed.

The slowdown is a result of a combination of factors, including celebrations of the Lunar New Year, which are not restricted to China but take place across much of Asia, and a number of unplanned interruptions in the operation of refineries in the region, which have hurt output. On top of this, maintenance season is coming for many Asian and Middle Eastern refineries, and forward tanker bookings have declined.

At the same time, 18 new Long Range 2 tankers will be added to the regional fleet by the end of March, and this will further aggravate the situation.

For shippers, these factors have led to a slump in earnings per long-haul vessel, to US$3,000-$5,000 daily from US$16,500 daily in 2016. This is lower than shipper’s daily operating costs per tanker, which average US$6,000-8,000, according to shipping and accountancy company Moore Stevens, as quoted by Malaysia’s daily The Star.

Earlier this month, chartering data revealed that freight rates from the Middle East to Japan for one widely used class of tankers, the very large crude carriers (VLCC) fell to US$29,671 daily, the lowest since last October, again because of the addition of newbuilds to the existing fleet as well as to vessels coming out of storage. According to lobby group BIMCo, as quoted by Hellenic Shipping News, this January saw the addition of 12 newbuilds to the global VLCC fleet.

Maintenance season in the Middle East and Asia, to take place until June, will take a substantial bite from regional demand: in China alone, the drop is estimated by analysts at up to 900,000 barrels per day, which means the overall drop for the region will be well over 1 million barrels.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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