• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days The United States produced more crude oil than any nation, at any time.
  • 7 days e-truck insanity
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 7 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 11 days Bankruptcy in the Industry
Energy Stocks Rally Under The Radar

Energy Stocks Rally Under The Radar

Big Oil is trumping the…

OPEC+ Rules in an Increasingly Tight Oil Market

OPEC+ Rules in an Increasingly Tight Oil Market

The market is growing increasingly…

Virus Sends Oil Shipping Rates To Asia To Lowest Since September

Charter rates for supertankers on key shipping routes from the United States and the Middle East to Asia have dipped to their lowest levels since the middle of September, because the coronavirus outbreak has started impacting oil demand in the world’s top oil importer, China, ship brokers tell Reuters.

The cost of chartering supertankers on routes to the main Asian and Chinese import hubs has now slumped to levels last seen before the U.S. slapped sanctions in September on several Chinese tanker owners for shipping Iranian oil, including units of Cosco, the ship brokers told Reuters.    

After the sanctions on Cosco, the cost of chartering supertankers to carry crude oil from the Middle East to Asia soared by double digits overnight.

On Friday, the U.S. partially lifted some of the sanctions on Cosco.  

Now the freight rates for supertankers, the so-called very large crude carriers (VLCCs), are down to their lowest since the middle of September 2019 as Chinese refiners grapple with weakening fuel demand at home and elsewhere in Asia.  

Demand for jet fuel, gasoline, and diesel is likely to be suppressed in the coming weeks as airlines are canceling thousands of flights to and from China, and Chinese authorities are discouraging or outright banning travel in the areas most affected by the virus.

The flow of oil traveling from Latin America to China has stopped in the wake of the coronavirus outbreak, with no oil making its way from Brazil or Colombia to China in more than a week, Bloomberg reported last week.

Sinopec, the largest oil refiner in Asia, is cutting its refinery production by 600,000 bpd in February, due to decreased fuel demand amid the outbreak, while independent Chinese refiners have already cut run rates by as much as 30-50 percent and now operate at less than half of their refining capacity, sources familiar with the plans told Reuters on Monday.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News