2024.10.11

Greek-managed tanker damaged in multiple Houthi drone attacks in Red Sea

The Greek-managed tanker Olympic Spirit was damaged in three drone attacks by Yemen's Houthi rebels while sailing in the Red Sea, 70 nautical miles off the Eritrean coast. The vessel, carrying vegetable oil from Kaliningrad to China, sustained light damage when a drone struck its bridge, and two additional projectiles exploded nearby.

Fortunately, no crew members were injured, and the ship resumed its journey with assistance from Western warships. This incident marks the 127th maritime attack in the Red Sea since the Houthi campaign escalated in November 2023, targeting vessels linked to Western nations amid ongoing Middle East tensions.

[SLOW] https://slowspace.io/  FLOW Olympic Spirit from Russian port Kaliningrad to China

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[SLOW] Oil Market _ Benchmark

Oil prices surge 4% amid US hurricane impact and middle east supply concerns

Oil prices spiked by approximately 4% due to multiple factors, including U.S. fuel demand surges ahead of Hurricane Milton and geopolitical tensions between Israel and Iran. Brent crude rose to $79.40 per barrel, while U.S. WTI crude settled at $75.85. In Florida, Hurricane Milton caused fuel shortages and power outages, disrupting petroleum supply chains. Meanwhile, fears of retaliatory strikes on oil facilities in the Middle East persisted after Iran launched missiles against Israel earlier this month, with Israeli officials warning of potential retaliatory actions. In addition, China’s new measures to support private sector growth and signs that the U.S. Federal Reserve may cut interest rates bolstered optimism for future oil demand.

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[SLOW] Tanker Fleet Study _ MR top 30 ship operators

Shell orders 10 new MR product tankers from Chinese shipyard in $480m deal

Shell has placed a $480 million order for 10 Medium Range (MR) product tankers from Guangzhou Shipyard International in China. Each 50,000 deadweight ton (dwt) tanker will cost $48 million and come equipped with scrubbers to meet environmental standards. The first tanker is scheduled for delivery in late 2027, with the remaining nine to follow between 2028 and 2029.

Although Shell has not officially commented, brokers speculate that the energy company may transfer ownership of the tankers to a leasing or shipowning company and lease them back under long-term contracts, similar to a 2021 deal involving Shandong Shipping. This new order is seen as part of Shell’s fleet renewal strategy, replacing older tankers chartered in a 2013 project. With nearly 41% of the global MR tanker fleet over 15 years old, industry players expect continued strong demolition activity as older vessels are phased out.

[SLOW] Tanker Fleet Study _ Number of MR and ratio of under 15-year old MR

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UK to review Russia-linked tanker sanctions amid insurer concerns over enforcement

The UK government is reviewing its sanctions on Russian-linked tankers after blacklisting 25 vessels involved in oil trading. Maritime Minister Mike Kane announced that a ministerial group is assessing ways to enhance the sanctions regime, with a report expected next year. Insurers have raised concerns about the effectiveness of these sanctions amid the rise of a shadow fleet. The International Group of P&I Clubs criticized the oil price cap as unenforceable, stating that 800 tankers left the group due to the policy. The UK is expected to align its measures with U.S. regulations following new rules introduced before the recent early election.

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[SLOW] https://slowspace.io/ Folder Filters _ Crude / Laden / Lifting from Russia

Sanctions on Russian oil tankers fall short as Moscow continues oil exports via blacklisted ships

Despite Western sanctions aimed at curbing Russia's oil exports, nearly one-third of the 72 tankers sanctioned by the U.S., U.K., and EU are back in operation, hauling Russian oil. Since the first sanctions in response to Russia's 2022 invasion of Ukraine, 21 of these vessels have loaded 24 cargoes. The rate of sanctioned tankers returning to work is accelerating, with seven active in early October alone. Although sanctions initially left these vessels idle, successful shipments in April boosted confidence among buyers and Moscow's oil customers, allowing Russia to find workarounds. Measures imposed by the U.K. appear less effective, with two-thirds of sanctioned vessels resuming operations, while U.S. sanctions have had more impact, keeping most blacklisted tankers idle. Many ships have been renamed and reflagged, often to Barbados, to avoid detection.

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[SLOW] https://slowspace.io/ Oil Pipeline Adria Oil Pipeline

MOL’s transition to non-Russian crude delayed until 2026

Hungarian oil group MOL has postponed its full transition to processing both Russian and non-Russian crude at its refineries in Slovakia and Hungary until the end of 2026, a year later than planned. MOL has faced delays in completing 24 technical upgrade projects needed to diversify away from Russian Urals crude, currently accounting for 60%-70% of its supply. Despite the EU’s ban on Russian oil imports following Russia’s invasion of Ukraine, Hungary, Slovakia, and the Czech Republic were granted exemptions. MOL’s investment to achieve 100% non-Russian crude processing is expected to cost $500 million. Meanwhile, MOL is negotiating with Croatia’s Janaf for a long-term contract to transport oil via the Adriatic pipeline but seeks lower transit fees. MOL also aims to maintain a diverse oil supply strategy, balancing Russian and non-Russian sources.

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[SLOW] https://slowspace.io/ Trade Flow BRICS members seaborne crude exports by origin countries

Saudi crown prince Mohammed bin Salman to skip upcoming BRICS summit in Russia

Saudi Crown Prince Mohammed bin Salman (MbS) will not attend the upcoming BRICS summit in Russia, with the Kingdom represented by Foreign Minister Prince Faisal bin Farhan Al Saud instead. The Kremlin confirmed this, noting that nine of the ten BRICS member states will send their leaders to the Kazan summit. The reason for MbS's absence has not been disclosed. BRICS has expanded from its original members—Brazil, Russia, India, and China—to include South Africa, Egypt, Ethiopia, Iran, the UAE, and Saudi Arabia. Russian official Yuri Ushakov emphasized the bloc's significance, accounting for 45% of the world's population and 40% of oil production, but critics point out that differing objectives among major members could hinder its effectiveness.

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[SLOW] https://slowspace.io/ FLOW Kurdistan Oil Pipeline

Kurdistan halves oil production to help Iraq meet OPEC quotas amid ongoing pipeline dispute

Iraq's semi-autonomous Kurdistan region has reduced its oil production by 50%, pumping only 140,000 barrels per day since September 2. The move follows a request from Baghdad as Iraq struggles to comply with its OPEC+ production quota. Iraq has consistently exceeded its limit and promised to make extra cuts to compensate for past overproduction.

Relations between the Kurdistan Regional Government (KRG) and Iraq’s federal government have been strained since March 2023, when Turkey halted oil transit through pipelines after an arbitration ruling. Kurdish officials are seeking U.S. assistance to pressure Baghdad to resolve the conflict and reopen the pipelines. Turkey signaled readiness to resume operations in October 2023, but Baghdad has yet to restart oil flow. Before the pipeline was shut down, Iraqi Kurdistan was exporting 400,000 barrels of oil per day through Turkey. Both Turkey and the U.S. support the reopening of the Iraq-Turkey pipeline to ease regional tensions and address rising oil prices.

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[SLOW] https://slowspace.io/ Port Dos Bocas  Cargo Flow

Mexico's new Olmeca Refinery reaches 80% capacity

Mexico’s state-owned oil company Pemex is now operating its new Olmeca refinery at about 80% of its 340,000 barrels per day (bpd) capacity, according to Mexican President Claudia Sheinbaum. This marks a significant improvement from the 25% capacity reported in August, when the refinery was processing only 84,100 bpd. The refinery, located near the Gulf Coast port of Dos Bocas, was a major initiative of Sheinbaum’s predecessor to boost domestic refining. Despite numerous delays and costs doubling to $16.4 billion, the refinery's increased operation aligns with Mexico’s goal to produce 90% of its domestic gasoline consumption. However, Pemex still imports a substantial amount of gasoline.

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[SLOW] Oil Market HSFO Singapore, Fujairah, Rotterdam and Houston

Singapore fuel oil stockpiles rise for second week amid slowing exports

Fuel oil stockpiles in Singapore rose for the second consecutive week, reaching 17.59 million barrels (2.77 million metric tons) as of October 9, the highest level in three weeks. This increase is attributed to a 26.6% decline in exports, totaling about 294,000 tons, while imports fell nearly 12.7% to around 758,000 tons. Most imports came from the U.S. and the Netherlands.

Net imports saw a slight decline of 0.76%, totaling 464,000 tons. High-sulfur 380-cst bunker premiums averaged $19.20 per metric ton, indicating ongoing supply tightness, while low-sulfur fuel oil premiums narrowed by $6/mt to $15.70/mt in early October.

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[SLOW] https://slowspace.io/ FLOW ExxonMobil Baytown Refinery

Exxon secures largest offshore carbon storage site in Texas

Exxon has been granted the largest U.S. offshore carbon storage site, located in Texas, as it expands its carbon capture initiatives. The company aims to store up to 7.5 million tons of CO2 annually from its Baytown refinery, contingent on receiving enough tax credits for its proposed hydrogen project. 

Though carbon capture has had mixed results in the past, Exxon is optimistic about scaling up efforts along the Gulf Coast, which accounts for around 20% of U.S. emissions. The company benefits from owning the largest U.S. CO2 pipeline network, following its acquisition of Denbury Inc. Its first major project—capturing 2 million tons of CO2 from CF Industries' ammonia plant in Louisiana—could be operational by mid-2025, pending approvals.

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HD Hyundai heavy industries launch world's first high-pressure ammonia dual-fuel engine

HD Hyundai Heavy Industries has launched the HiMSEN ammonia dual-fuel engine (H22CDF-LA), claiming it to be the world's first high-pressure ammonia engine. It has received class approval from seven major classification societies. This engine utilizes a high-pressure direct injection method, enhancing efficiency and reducing emissions compared to traditional low-pressure ammonia engines. It is suitable for ammonia carriers and marine power generation, with plans to market it soon. The company aims to lead in eco-friendly ship technology with this innovative engine design.