Oil Market News

The Singapore trading arm of U.S.-based refiner Phillips 66 has recently leased a new floating storage vessel along the Singapore and Malacca Straits for storing fuel oil, market sources told Reuters.The 300,000 metric-tons capacity Southern Emperor is the latest addition to 19 existing fuel oil floating storage vessels along the Straits chartered by various market participants, said sources.So far, Phillips 66 has been partially renting the EM Splendour for fuel oil storage.The Singapore and Malacca Straits are a key location for fuel oil storage in Asia, with traders building inventories of

Oil prices edged lower on Friday but remained on course for a fourth consecutive week of gains, as the latest U.S. sanctions on Russian energy trade added to worries about oil supply disruptions.Brent crude futures were down 41 cents, or 0.5%, at $80.87 per barrel by 11:30 a.m. ET (1630 GMT), having gained 1.4% this week. U.S. West Texas Intermediate crude futures were down 89 cents, or 1.1%, at $77.81 a barrel, having climbed 1.6% for the week."Sanctions on Russia are causing tightness of supply in Europe…

"This time it's different" is a well-worn cliché that seems to be getting another whirl with the latest U.S. sanctions against Russia's crude oil exports.Oil prices jumped in the wake of the new measures aimed at preventing Russia from shipping crude using a so-called "dark fleet" of tankers.It does seem strange an industry which has been arguing since Russia's 2022 invasion of Ukraine that sanctions are largely ineffective, should suddenly switch to thinking the new steps are…

Chinese and Indian refiners will source more oil from the Middle East, Africa and the Americas, boosting prices and freight costs, as new U.S. sanctions on Russian producers and ships curb supplies to Moscow's top customers, traders and analysts said.The U.S. Treasury on Friday imposed sanctions on Russian oil producers Gazprom Neft and Surgutneftegas, as well as 183 vessels that have shipped Russian oil, targeting the revenues Moscow has used to fund its war with Ukraine.Many…

The OSV sector has concluded its second quarter earnings season, marking another quarter with strong profitability and favorable market conditions. However, negative oil market sentiment, with the Brent price down by 19% since the start of July, has impacted the overall oil services market with the wider PHLX Oil Service Index trading down 4% year-to-date. The OSV sector has returned 5% year-to-date at the time of writing, led by DOF’s 57% performance.Image courtesy Fearnley SecuritiesDayrates Continued to RiseTidewater was the first out of the blocks this earnings season…

Big energy merchants trading oil cargoes that form the basis of the Brent benchmark have used an obscure clause to reroute U.S. shipments from Europe, in a practice that raises doubts over whether reforms to the crude price marker have succeeded.Brent, the most significant benchmark across commodity markets, is used to price more than 60% of globally traded crude and underpins oil futures. Its value affects fuel prices paid by consumers and businesses.The 2023 addition of U.S.

Offshore drilling contractor Seadrill is looking to buy more assets or create a larger player by merging with peers, the company's CEO said on Wednesday.Norwegian-born billionaire John Fredriksen lost the control of the company, once the world's largest driller by market cap, to its creditors over two debt restructurings since 2014.Now a much leaner and smaller company, New York-listed Seadrill itself is looking to buy distressed assets or players with "distressed balance sheets"…

An oil tanker managed by an Azerbaijan-based firm is travelling the Northern Sea Route to China for the first time, taking a route so far dominated by vessels managed by Russian shipping giant Sovcomflot, according to LSEG data and two traders.The vessel Prisma is managed by a private company Vista Vvave Shipmanagement based in Azerbaijan, one of the traders said, citing the vessel's documents.Moscow wants to increase traffic via the Northern Sea Route (NSR), which runs from Murmansk near Russia's border with Norway eastwards to the Bering Strait near Alaska…

Trader Gunvor and French major TotalEnergies have stored North Sea crude in at least four tankers in the past month as on-water stockpiling of the grades hits a 2-1/2 year high, a fresh sign of weak appetite for oil from refiners.At least 2.6 million barrels of North Sea crude grades Forties and Gullfaks have been put in floating storage in Europe, the highest volume since January 2022, according to data from analytics firm Vortexa.Physical oil markets have weakened globally in recent weeks…

Logistical constraints at the Port of Vancouver mean waterborne oil exports from the highly anticipated Trans Mountain pipeline expansion due to start up on Wednesday may only be around half what the Canadian government-owned corporation has forecast, traders and shipping sources said.The C$34 billion ($24.82 billion) project to nearly triple the flow of crude from Alberta to Canada's Pacific Coast to 890,000 barrels per day is scheduled to start operating on May 1 after years of regulatory delays and construction setbacks.The extra 590…

India's Reliance Industries, operator of the world's biggest refining complex, will not buy Russian oil loaded on tankers operated by shipping company Sovcomflot (SCF) after recent U.S. sanctions, according to two sources familiar with the matter.The development adds to oil export problems for Russia as its oil firms may face difficulties finding ships to sell surplus oil after recent Ukrainian drone attacks on the state's refineries. Russian companies are already struggling to collect payments for oil exports due to banking restrictions.The U.S.

“The winds of change are blowing wild and free.” – Bob DylanIn the U.S. offshore wind industry, developments over recent months have placed an exclamation point on the word “wild”. Yes, the wind still blows “free”, but mounting challenges have proven that harnessing its power offshore is anything but. In fact, far from it, as rising materials costs, high interest rates, labor shortages and supply chain delays, among other issues, have delivered heavy blows to the commercial viability of several projects.

Istanbul-based tanker operator Palmali has become the top shipper for Ukraine's Black Sea-borne sunflower oil exports, one of the country's key export products, and plans to expand further, its chairman Mubariz Mansimov said.Azeri-born Mansimov said Palmali was the most active operator in the increasingly dangerous Black Sea, and plans to expand its presence in Ukraine by placing an order for 10 more cargo carriers and starting trading operations early next year. Since pulling out of the U.N.-brokered deal that guaranteed safe shipment of Ukrainian food products in July…

A very active Atlantic hurricane season so far this year has not sent storms across U.S. oil and natural gas fields in the northern Gulf of Mexico, sparing energy companies billions of dollars of losses and consumers higher fuel costs.The 2023 Atlantic hurricane season has been another in a string with above average activity producing three major hurricanes with winds above 111 mph (179 kph) out of six hurricanes among 20 named tropical storms.So far this year, only one storm, Tropical Storm Harold, on Aug.

Russia's oil exports via its western sea ports in November may fall by some 300,000 barrels per day (bpd) after ample supplies in September-October as domestic refineries are expected to raise runs as seasonal maintenance ends, three sources familiar with the plans said.Urals, Siberian light and KEBCO crude oil exports from Primorsk, Ust-luga and Novorossiisk ports are set to decline by some 300,000 bpd from October to slightly above 2 million bpd, according to the sources familiar…

Iran's oil output and exports jumped in August despite U.S. sanctions, according to consultants and companies that track tanker shipments, as Tehran sells to buyers including China.Analysts said the higher exports appear to be the result of Iran's success in evading U.S. sanctions and Washington's discretion in enforcing them as the two countries seek better relations.The United States has sought to limit Iran's oil exports since Donald Trump exited a 2015 nuclear accord in 2018 and re-imposed sanctions aimed at curbing revenues to Iran's government.

Russia is shipping a naphtha cargo via the North Sea Route (NSR) as Moscow seeks to increase supplies using the route to major trade partner China, cutting its way through European waters, traders said and Refinitiv data showed.SCF Irtysh is loaded with with 37,000 tonnes of naphtha onboard, loaded at Ust-Luga port on August 5, 2023, for delivery to China. It is the first such loading since at least the late 2000s, according to two traders.The supplier of the cargo was Gazprom Neft, the traders said.

Russia's seaborne oil exports from Primorsk, Ust-Luga and Novorossiisk hit 4-year record of 2.4 million barrels per day (bpd) in May as domestic refineries maintenance season freed up extra barrels, Refinitiv Eikon data showed on Monday.Russia's oil exports have been growing steadily over the last couple of months even though the state pledged additional cuts in line with OPEC+ members. Saudi Arabia has recently announced a deep cut to its output in July on top of a broader OPEC+ deal.Russian refineries cut runs in May amid major seasonal maintenance on most plants…

Chinese customs authorities are stepping up inspection checks on cargoes of heavy crude oil after uncovering several Iranian shipments that were mislabelled as diluted bitumen in an effort to bypass import quotas.The checks, begun a month ago, are delaying oil discharges into the eastern refining hub of Shandong province.They are also adding to uncertainty over the risk of disruption to shipments from Iran and Venezuela, while cutting into refining operations just as fuel demand recovers.

Norwegian energy company Equinor announced it has entered into an agreement to sell its oil terminal in the Bahamas to Estonian logistics and investment business Liwathon. Financial terms of the deal were not disclosed.The South Riding Point oil terminal at the Grand Bahama Island, commissioned in 1973 was purchased by Equinor in 2009 to enable the company to trade oil primarily originating from the American markets. The facility comprises 10 large storage tanks with a capacity of 6.8 million barrels (1…

European Union governments tentatively agreed on Thursday on a $60 a barrel price cap on Russian seaborne oil - an idea of the Group of Seven (G7) nations - with an adjustment mechanism to keep the cap at 5% below the market price, according to diplomats and a document seen by Reuters.The agreement still needs approval from all EU governments in a written procedure by Friday. Poland, which had pushed for the cap to be as low as possible, had as of Thursday evening not confirmed if it would support the deal…

Brazilian state-controlled oil company Petrobras has bought its first cargo of Guyanese crude for refining domestically, the company told Reuters, as South America's newest producer expands its market reach.With the start of a second floating production facility in February, Guyana now sells two light and sweet oil grades with plans to pump up to 360,000 barrels per day (bpd) this year. The sales are helping the tiny nation rapidly boost its revenue."Petrobras constantly monitors the international oil market looking for different suppliers and new production worldwide," a company spokesperson said in a statement.The 1-million-barrel cargo of crude loaded last week from the Liza Destiny and departed on Monday onboard the Bahamas-flagged tanker Cascade Spirit.

Libya's National Oil Corporation (NOC) declared force majeure at the Brega oil port on Tuesday, saying it was unable to fulfil its commitments towards the oil market."At a time when oil prices are witnessing a significant recovery due to the increase in global demand... Libyan crude is subjected to a wave of illegal closures," the state-owned company said in a statement.(Reuters - Reporting by Ahmed ElumamiWriting by Ahmad ElhamyEditing by Louise Heavens)