2024.08.12

Iran expands crude oil exports to new markets amid push to maximize production

Iran has been increasingly exporting crude oil to new destinations, including Bangladesh and Oman, as part of its strategy to sustain high production levels despite U.S. sanctions. Iran's oil output has reached its highest levels – 3.2 million barrels per day - since 2018, with exports peaking earlier this year. In addition to traditional markets like Syria and China, Iran is now targeting other countries, using tactics like ship-to-ship transfers to facilitate these transactions. This effort underscores Tehran's determination to sidestep sanctions and maintain its oil revenues. However, the volume of these exports appears to be stabilizing after a recent surge.

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Okeanis Eco Tankers converts VLCCs to capitalize on lucrative clean product trades

Okeanis Eco Tankers (OET) has strategically converted half of its VLCC fleet from crude oil carriers to clean product tankers, dubbed 'LR4,' to take advantage of higher earnings in spot trades for diesel. This move, driven by weaker summer freight markets, has proven profitable, with the company securing longer charter durations and positioning vessels for more lucrative fourth-quarter opportunities. While the conversions have been successful, the company remains flexible, considering future clean market trades depending on market conditions. The conversion process, which included extensive cleaning, has demonstrated OET's ability to adapt to market opportunities.

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Euronav CEO expects strong crude tanker demand despite industry challenges

Alexander Saverys, CEO of Euronav, predicts a continued need for more crude tankers throughout most of the decade, driven by steady global oil demand growth despite potential obstacles. While oil supply from OPEC and slight declines in China's oil imports present challenges, Saverys points to healthy earnings and a low orderbook as indicators of a strong supply-demand environment. He highlights that if older tankers were scrapped, the fleet would shrink, potentially creating a structural shortage. Despite the anticipated "peak oil" still being years away, Saverys sees the tanker market remaining robust in the coming years.

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Reliance Industries to resume Venezuelan oil trade using naphtha as partial payment

India's Reliance Industries plans to use naphtha as partial payment for Venezuelan crude oil, following U.S. approval to resume trade with the sanctioned country. Reliance, which halted direct purchases from Venezuela in April due to sanctions, received permission in July to restart imports. The deal involves supplying naphtha from the U.S. to Venezuela, a key diluent for the heavy crude Venezuela produces. While Reliance will pay the remainder in dollars, the volume and duration of the U.S. authorization remain unclear. Delays at Venezuelan ports have affected oil shipments, impacting Reliance and other Asian buyers.

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OPEC+ faces uncertainty as global oil demand growth lags behind supply plans

Global oil demand growth is falling short of expectations, particularly in the U.S. and China, raising concerns about the market's ability to absorb OPEC+'s planned increase in oil production starting in October. Analysts warn that if the economic slowdown persists, OPEC+ may need to delay the production hike or accept lower prices. Discrepancies between OPEC's and the IEA's demand forecasts add to the uncertainty, with OPEC projecting stronger growth than the IEA. The situation is further complicated by sluggish diesel demand in China and the U.S., as well as mixed signals from the global jet fuel market.