2025.02.06

Iran urges OPEC unity against potential US sanctions on oil exports

Iran's President Masoud Pezeshkian called on OPEC members to come together against potential U.S. sanctions on Iran's oil exports, as President Donald Trump aims to reduce them to zero. Iranian crude exports, mainly to China, are currently at 1.5 million barrels per day, accounting for 1.4% of global supply. Pezeshkian stressed unity among OPEC members to resist U.S. pressure. Trump's renewed sanctions seek to prevent Iran from acquiring nuclear weapons, despite previous increases in oil exports during President Joe Biden's term. Iran warns that unilateral sanctions on oil producers would destabilize energy markets, hurting consumers worldwide. In response, Iranian oil minister Mohsen Paknejad emphasized the importance of depoliticizing the oil market for energy security. Paknejad highlighted the need for upstream investments in the global oil market, pointing out that political pressures on OPEC+ and regulatory restrictions hinder supply. Past sanctions led to a significant drop in Iranian oil exports, prompting OPEC and allies to boost supply in 2018.

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Saudi Aramco raises crude prices for March shipments amid rising demand from China and India

Saudi Aramco, the world's top oil exporter, has significantly raised crude prices for March shipments, particularly for buyers in Asia, due to increasing demand from China and India amid U.S. sanctions on Russian oil. The price of Arab Light crude for Asia rose by $2.40 to $3.90 per barrel above the Oman/Dubai benchmark. Prices for buyers in Northwest Europe and the Mediterranean increased by $3.20 per barrel across all crude grades. U.S. crude prices saw a smaller increase of 10-30 cents per barrel.

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Global oil prices drop over 2% as US stockpiles surge and refiners cut back

Oil prices fell more than 2% due to a significant increase in U.S. crude and gasoline stockpiles, indicating weaker demand. Additionally, concerns about a new trade war between China and the U.S. also contributed to fears of softer economic growth. Refiners are not actively purchasing crude oil due to low gasoline demand, leading to maintenance work instead. China's announcement of tariffs on U.S. oil imports has further reduced demand for these commodities, causing prices to drop. Iran's President called for OPEC unity against potential U.S. sanctions, as Trump plans to reinstate pressure on Iran. Tehran's oil exports generated billions in revenue, but the market faces uncertainty due to trade tensions and potential disruptions in Iranian oil exports.

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Denmark cracks down on older tankers anchoring in waters, citing risks from dark fleet vessels

Denmark is increasing scrutiny of older tankers anchoring in its waters, particularly near Skagen. These vessels, often part of the dark fleet with questionable ownership and compliance with safety rules, pose risks to the environment and mariners. Recent incidents, including a tanker carrying Russian fuel oil losing power, have highlighted the dangers posed by these ships. Concerns have also been raised about Russia-linked ships allegedly sabotaging communication cables in the Baltic Sea. Denmark's actions are part of a broader effort to address ecological and safety risks posed by non-traditional shipping vessels in its waters.

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Union Maritime secures five-year tanker charter with Shell for $53 Million

UK owner Union Maritime has secured a five-year tanker charter with oil major Shell for a scrubber-fitted LR2 newbuilding at $29,000 per day, totaling $53m. The vessel, likely the Silverstone, is set for delivery in the second quarter from Shanghai Waigaoqiao Shipbuilding. Despite a quiet market, rates have dropped $500 per day according to Braemar. Aframaxes and LR2s have gained attention with charterers offering bids below previous levels. The spot market remains volatile, with the Baltic Exchange reporting a spot rate of $21,000 per day for modern scrubber-fitted LR2s, down 34% in the last week. In addition, there are reports of the Gunvor newbuilding MH Gladiator being relet to a US Gulf refiner for three years at $35,000 per day. The VLCC sector is quiet with wide bid/offer spreads, but there is ongoing interest. Equinor fixed the Asian Progress VI VLCC for a year at $54,300 per day, with spot rates reaching $57,600 per day for modern scrubber-fitted ships from the Middle East to Asia.

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Baltic Exchange introduces BCAA assessments for chemical tanker sector

The Baltic Exchange in London has introduced the Baltic Chemical and Agricultural Oil Assessments (BCAA) to provide freight data and benchmarks for the chemical tanker sector. The indices cover various routes and commodities, including benzene, biofuels, and vegetable oils, priced in dollars per tonne for different cargo sizes. The Exchange aims to engage with stakeholders in the supply chains to meet industry needs and ensure transparency. CEO Mark Jackson highlighted the complexity of chemical tanker operations but noted the maturity of the chartering market, allowing for the development of reference prices. The launch of BCAA demonstrates the Exchange's commitment to expanding services and supporting compliance procedures for new environmental regulations.

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