Oil Daily | Supertanker Rates Double Amid U.S. Sanctions on Russian Oil, Impacting Global Shipping
Market BriefTuesday, Jan 21, 2025 7:01 am ET
2min read【Global Oil Supply and Demand】
Chinese capacity installations of solar and wind power surged last year, with solar power generation capacity up by 45.2% and wind power by 18%, according to China's National Energy Administration. The country's goal is to support over 200 million kilowatts of newly added renewable energy annually to maintain a 90% utilization rate nationwide.
Big Oil majors are preparing for reduced income from liquefied natural gas (LNG) trade as prices stabilize after a surge in recent years. Analysts highlight that volatility has decreased, impacting profits for companies like Shell, BP, TotalEnergies, Exxon, and Chevron, which rely significantly on LNG earnings.
Israel's natural gas exports to Egypt rose by 18.2% in 2024 due to Egypt's growing gas deficit. Israel has been expanding hydrocarbon exploration, notably in the Levant Basin, increasing its natural gas reserves by 40% over the past decade, driven by discoveries like the Leviathan field.
Supertanker rates have surged following U.S. sanctions on Russian oil trade. Rates for vessels shipping crude from the Middle East to China have doubled, reflecting tightened tanker availability and increased competition due to sanctions on Russian entities and vessels.
At least six U.S. LNG cargoes initially headed to Asia were redirected to Europe amid rising European natural gas prices and declining Asian demand. The move was influenced by Europe facing a colder winter and halted Russian gas supplies, making the U.S.-Europe LNG route more economically viable.
【Oil-Producing Countries Dynamics】
Russia's oil shipments via the Baltic Sea fell by 10% in late 2024 due to EU sanctions on Russian oil and gas exports. Finnish authorities observed older vessels transporting crude, raising safety concerns. The sanctions, targeting Russian companies and executives, have disrupted Russian oil exports to key markets like India and China.
India's state refiners are seeking alternative price quotes from Middle Eastern oil exporters amid soaring costs due to U.S. sanctions on Russian oil. Indian refineries aim to secure cheaper supplies from sources like ADNOC and potentially Saudi Aramco, asking for delivered-at-port pricing to counter rising freight rates.
【Latest Oil Policies】
President Donald Trump is urging the EU to increase purchases of U.S. crude oil and LNG to avoid tariffs. Trump lifted restrictions on LNG export terminal construction, promoting U.S. energy exports amid shifts in global energy markets. However, Europe faces challenges due to long-term contracts and spot market preferences.
Trump's administration is reversing Biden's energy policies, including withdrawing from the Paris Agreement and lifting bans on offshore drilling. Trump aims to boost U.S. oil and gas production for global energy dominance, but regulatory changes face potential legal challenges and industry reluctance to increase output.
【Industry News】
Chevron is interested in offshore oil and gas exploration in Greece, following Exxon's activities, as Greece aims to boost domestic energy supply amid the European energy crisis. An international tender is expected soon, aligning with Greece's vision for energy independence and reduced costs.
【Company News】
U.S. supermajor Chevron is looking to explore oil and gas opportunities offshore Greece, aligning with Greece's strategy for energy independence and cost reduction. The energy ministry plans to announce a tender soon, with Chevron's interest marking a significant presence of global energy giants in Greece.
【Others】
The Israeli natural gas export to Egypt surged in 2024 due to Egypt's gas deficit and infrastructure limitations. The Levant Basin's resources have drawn top energy firms amid Europe's scramble for non-Russian gas, with Israel's reserves growing significantly through exploration and production expansions.
Chinese capacity installations of solar and wind power surged last year, with solar power generation capacity up by 45.2% and wind power by 18%, according to China's National Energy Administration. The country's goal is to support over 200 million kilowatts of newly added renewable energy annually to maintain a 90% utilization rate nationwide.
Big Oil majors are preparing for reduced income from liquefied natural gas (LNG) trade as prices stabilize after a surge in recent years. Analysts highlight that volatility has decreased, impacting profits for companies like Shell, BP, TotalEnergies, Exxon, and Chevron, which rely significantly on LNG earnings.
Israel's natural gas exports to Egypt rose by 18.2% in 2024 due to Egypt's growing gas deficit. Israel has been expanding hydrocarbon exploration, notably in the Levant Basin, increasing its natural gas reserves by 40% over the past decade, driven by discoveries like the Leviathan field.
Supertanker rates have surged following U.S. sanctions on Russian oil trade. Rates for vessels shipping crude from the Middle East to China have doubled, reflecting tightened tanker availability and increased competition due to sanctions on Russian entities and vessels.
At least six U.S. LNG cargoes initially headed to Asia were redirected to Europe amid rising European natural gas prices and declining Asian demand. The move was influenced by Europe facing a colder winter and halted Russian gas supplies, making the U.S.-Europe LNG route more economically viable.
【Oil-Producing Countries Dynamics】
Russia's oil shipments via the Baltic Sea fell by 10% in late 2024 due to EU sanctions on Russian oil and gas exports. Finnish authorities observed older vessels transporting crude, raising safety concerns. The sanctions, targeting Russian companies and executives, have disrupted Russian oil exports to key markets like India and China.
India's state refiners are seeking alternative price quotes from Middle Eastern oil exporters amid soaring costs due to U.S. sanctions on Russian oil. Indian refineries aim to secure cheaper supplies from sources like ADNOC and potentially Saudi Aramco, asking for delivered-at-port pricing to counter rising freight rates.
【Latest Oil Policies】
President Donald Trump is urging the EU to increase purchases of U.S. crude oil and LNG to avoid tariffs. Trump lifted restrictions on LNG export terminal construction, promoting U.S. energy exports amid shifts in global energy markets. However, Europe faces challenges due to long-term contracts and spot market preferences.
Trump's administration is reversing Biden's energy policies, including withdrawing from the Paris Agreement and lifting bans on offshore drilling. Trump aims to boost U.S. oil and gas production for global energy dominance, but regulatory changes face potential legal challenges and industry reluctance to increase output.
【Industry News】
Chevron is interested in offshore oil and gas exploration in Greece, following Exxon's activities, as Greece aims to boost domestic energy supply amid the European energy crisis. An international tender is expected soon, aligning with Greece's vision for energy independence and reduced costs.
【Company News】
U.S. supermajor Chevron is looking to explore oil and gas opportunities offshore Greece, aligning with Greece's strategy for energy independence and cost reduction. The energy ministry plans to announce a tender soon, with Chevron's interest marking a significant presence of global energy giants in Greece.
【Others】
The Israeli natural gas export to Egypt surged in 2024 due to Egypt's gas deficit and infrastructure limitations. The Levant Basin's resources have drawn top energy firms amid Europe's scramble for non-Russian gas, with Israel's reserves growing significantly through exploration and production expansions.
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