This Domain is for Sale. To make an offer please get contact.
Make an Offer
  • Home
  • News
  • Technology
  • Law & Regulations
  • Informative
  • Tug&Barge&Salvage
Maritime and Salvage Wolrd News - Latest Ship Technologies
No Result
View All Result
No Result
View All Result
Maritime and Salvage Wolrd News - Latest Ship Technologies
No Result
View All Result

Bulls Beware: Soaring Tanker Rates Show Supply Glut Persists

marinesalvage by marinesalvage
May 9, 2024
in News
0
Bulls Beware: Soaring Tanker Rates Show Supply Glut Persists
Bulls Beware: Soaring Tanker Rates Show Supply Glut Persists

Bulls Beware: Soaring Tanker Rates Show Supply Glut Persists

By Naomi Christie and Bill Lehane

(Bloomberg) — Four months into oil’s rebound from a six- yr low, the tanker market is sending a transparent sign that the rally is underneath menace.

A sudden surge in demand for supertankers drove benchmark constitution charges 57 % larger within the two weeks via May 20. OPEC may have virtually half a billion barrels of oil in transit to patrons at first of June, probably the most this yr, whereas analysts say about 20 million barrels is being saved on ships in one other indication the glut has but to dissipate.

The Organization of Petroleum Exporting Countries is pumping probably the most oil in additional than two years, decided to defend market share fairly than costs. A document minimize to the variety of lively U.S. drilling rigs and billions of {dollars} of spending reductions by firms since final yr’s worth plunge has but to translate right into a stoop in barrels produced. The world is pumping about 1.9 million barrels a day extra crude than it wants, in accordance with Goldman Sachs Group Inc.

“Supply of oil continues to build,” stated Paddy Rodgers, the chief govt officer of Antwerp, Belgium-based Euronav NV, whose supertanker fleet can haul 56 million barrels of crude. “All of this oil needs to go somewhere,” he wrote in an e-mail May 19.

Daily charges for supertankers on the business’s benchmark route reached $83,412 on May 20, from $52,987 on May 6, in accordance with the Baltic Exchange in London. While charges since retreated to $64,710, they’re nonetheless the very best for this time of yr since not less than 2008.

Brent crude futures superior 37 % from this yr’s low on Jan. 13, and traded at $62.09 a barrel on the London- primarily based ICE Futures Europe alternate at 5:41 p.m. native time Thursday.

Increasing Exports

OPEC’s 12 members may have 485 million barrels of oil in transit to patrons within the 4 weeks to June 6, probably the most since November, Roy Mason, founding father of Oil Movements, a Halifax, England-based firm monitoring the flows, stated by e-mail Wednesday.

Iraq, the group’s second-largest producer, plans to spice up exports to a document 3.75 million barrels a day subsequent month, in accordance with delivery applications.

Spare tanker capability within the Middle East has seldom been tighter. The mixed extra of ships competing for the area’s exports stood at 6 % final week, the bottom for the time of yr in Bloomberg surveys of shipbrokers that began in 2009. While that expanded to 12 % this week, the month-to-month common was nonetheless the bottom on document for May.

Bullish oil merchants might get some consolation from the U.S. Recent drops in oil inventories there are signaling a gradual easing of the glut, Paul Horsnell and different Standard Chartered Plc analysts wrote in a report May 26. It might take not less than one other quarter for the excess to vanish, they wrote.

Physical Activity

“There still seems to be a lot of physical activity, a lot of oil on the water,” Nigel Prentis, the top of analysis at Hartland Shipping Ltd. in London, stated by telephone May 19. While the second quarter is normally quieter as refineries change to summer time fuels for the Northern Hemisphere, “the market is still busy and rates are incredibly high,” he stated.

Supertankers in a position to haul about 2 million barrels every will earn a median of $45,000 a day this yr, 69 % greater than in 2014, in accordance with the typical of 10 analyst estimates for international charges compiled by Bloomberg.

Shares of Euronav superior 22 % this yr, whereas these of Frontline Ltd., with a fleet of 24 supertankers, jumped 25 %.

OPEC pumped about 31.3 million barrels a day final month, and can most likely keep its official output goal of 30 million barrels a day when members meet in Vienna on June 5, in accordance with a Bloomberg survey of analysts and merchants. The group determined in November that fairly than minimize provide to prop up costs, they might hold pumping to hobble higher-cost producers.

Floating Storage

The capability of the worldwide tanker fleet has been additional constricted by traders storing oil at sea, looking for to revenue from longer-dated futures contracts costing greater than near-term provide. About 20 million barrels are being saved, in accordance with the typical of three estimates from analysts.

“The summer is not usually the time when rates really should go high,” Odysseus Valatsas, chartering supervisor at Dynacom Tankers Management in Glyfada, Greece, stated by telephone May 21. “The market has picked up and it’s looking great for the owners for the summer.”

©2015 Bloomberg News

Bulls Beware: Soaring Tanker Rates Show Supply Glut Persists

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content material, insider opinions, and vibrant neighborhood discussions.

Sign Up

Source of This New

Tags: tankers
Previous Post

Bergen Engines to Power World’s Largest Hydrogen Ferries

Next Post

Nice Moves – Hybrid Tug RT Evolution Shows Its Stuff During Escort Trials

Related Posts

Hunt for Black Boxes Still On After AirAsia Plane’s Tail Located
News

Hunt for Black Boxes Still On After AirAsia Plane’s Tail Located

July 13, 2024
capesize bulk carrier terminal iron ore dry bulk
News

Capesize Rates at Six-Year Lows, Could Slide Further

July 13, 2024
jennifer turecamo moran tug chesapeake bay winter
News

Cold Morning on the Chesapeake

July 13, 2024
Video: Aboard the Mighty CSCL Globe in Felixstowe – ShippingTV
News

Video: Aboard the Mighty CSCL Globe in Felixstowe – ShippingTV

July 13, 2024
Eco Marine Power and Nakashima Propeller Cooperate on Composites
News

Eco Marine Power and Nakashima Propeller Cooperate on Composites

July 12, 2024
odfjell
News

Odfjell Announces Layoffs, Reduction of European Officers

July 12, 2024
Next Post
Nice Moves – Hybrid Tug RT Evolution Shows Its Stuff During Escort Trials

Nice Moves – Hybrid Tug RT Evolution Shows Its Stuff During Escort Trials

Quick Search

No Result
View All Result

Recent Posts

  • Hunt for Black Boxes Still On After AirAsia Plane’s Tail Located July 13, 2024
  • Capesize Rates at Six-Year Lows, Could Slide Further July 13, 2024
  • Cold Morning on the Chesapeake July 13, 2024
  • Video: Aboard the Mighty CSCL Globe in Felixstowe – ShippingTV July 13, 2024
  • Eco Marine Power and Nakashima Propeller Cooperate on Composites July 12, 2024

Categories

  • Informative
  • Law & Regulations
  • News
  • Technology
  • Tug&Barge&Salvage
Hunt for Black Boxes Still On After AirAsia Plane’s Tail Located
News

Hunt for Black Boxes Still On After AirAsia Plane’s Tail Located

by marinesalvage
July 13, 2024
0

Hunt for Black Boxes Still On After AirAsia Plane’s Tail Located By Fathiya Dahrul and Rieka Rahadiana (Bloomberg) — Divers...

Read more
capesize bulk carrier terminal iron ore dry bulk

Capesize Rates at Six-Year Lows, Could Slide Further

July 13, 2024
jennifer turecamo moran tug chesapeake bay winter

Cold Morning on the Chesapeake

July 13, 2024
Video: Aboard the Mighty CSCL Globe in Felixstowe – ShippingTV

Video: Aboard the Mighty CSCL Globe in Felixstowe – ShippingTV

July 13, 2024
Eco Marine Power and Nakashima Propeller Cooperate on Composites

Eco Marine Power and Nakashima Propeller Cooperate on Composites

July 12, 2024
Maritime and Salvage Wolrd News - Latest Ship Technologies

© 2023 - Marine-Salvage.net

Navigate Site

  • Home Page
  • Privacy Policy
  • Contact Us
  • About Us

Follow Us

No Result
View All Result
  • Home
  • News
  • Technology
  • Law & Regulations
  • Informative
  • Tug&Barge&Salvage

© 2023 - Marine-Salvage.net

Manage Cookie Consent
We use cookies to optimize our website and our service.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}