Long-range product carriers operating in the Arabian Gulf region have enjoyed a recent run-up in rates as assessments for TC1 and TC5 have traded up 38% and 25%, respectively, since the start of September. In general, demand within this market has come under some pressure this year amid increased refining capacity in the East serving local demand as well as an extended maintenance schedule at refineries in the Middle East this year. Since late summer, maintenance levels have tapered off, redirecting cargo demand back to the market with a considerable jump in activity over September. Through September 28, we have ...
Crude Strength Will Be Short-Lived
Sept. 21, 2017
A steady flow of Northern European crude has been making its way to Asia this year as OPEC production cuts continue to boost pricing for Middle Eastern grades and push Eastern refiners to source barrels from the Atlantic Basin.
Mediterranean Crude Moves East
Sept. 19, 2017
The Mediterranean region continues to grow as a demand center for dirty tankers from a load perspective as the run up in regional crude supply has pressured pricing and increased arbitrage opportunities in a lower freight rate environment. Mediterranean crude supply is on track to rise by 460,000 b/d this year amid a recovery in Libyan and Kazakhstan production as well as redirected Russian barrels into the Black Sea.
What is Driving the US Export Growth?
Sept. 12, 2017
Since the former US administration lifted the ban on US crude exports at the conclusion of 2015, this market has experienced considerable growth within the global oil and gas industry. In 2016, US crude export volumes averaged about 591,000 b/d with a majority of the volumes to Canada and regional trading partners in the Caribbean. Some barrels were shipped to Northern Europe and the Far East; however, in relatively low quantities, when compared to levels witnessed today. Through the first half of 2017, we have observed US crude exports average at about 918,000 b/d with just ...
Hurricane Harvey Wreaks Havoc
Sept. 7, 2017
Hurricane Harvey broke the Texas coast on the night of Friday August 25 as a category four hurricane and within a day was downgraded to a tropical storm; however, massive rainfall placed the US’ fourth largest city under water. Record flooding has been reported throughout the Houston area, causing many oil majors to shut refinery operations. It is estimated that around 4-5 million b/d of primary distillation capacity was impacted with some operations returning quicker than others; however, the impact on 1.5 million b/d of capacity in the Port Arthur area has yet to be fully determined ...