Four VLCCs heading to US Gulf to store crude

Spanish Market: Crude oil, Freight
19/05/20

At least four empty very large crude carriers (VLCCs) booked for floating storage are on their way to the US Gulf coast and will likely add to the tally of VLCCs storing US crude.

The four tankers are part of a flurry of floating storage bookings that occurred amid a growing oil glut on sharply lower demand from Covid-19-related restrictions on travel. The oversupply combined with an oil price crash resulted in high demand for crude storage.

The glut persists, but rising prices have eased some of the pressure on storage capacity. The Nymex WTI June futures contract closed today at $32.50/bl, compared with the -$37.63/bl close of the May contract on 20 April.

The Blue Nova, chartered by US oil producer Hess, is scheduled to arrive on 24 May, per data from oil analytics firm Vortexa. The Maxim, chartered by fellow US crude producer Occidental, is set to reach the US Gulf coast on 31 May. The remaining two VLCCs, the Occidental-chartered Sea Ruby and the Hess-chartered Leonidas, are scheduled to arrive on 3 June and 24 June, respectively.

Hess said it has chartered a third VLCC for storage. Occidental has no other known floating storage bookings.

The four tankers were chartered for 9- to 12-month durations at an average rate of $89,500/d, according to the Argus floating storage bookings database. VLCC short-term time charter rates have since dropped to around $75,000/d as the Opec+ cuts lower cargo demand and free up tonnage supply.

Excess US crude and limited land-storage capacity have already prompted traders to exercise floating storage options on at least four additional VLCCs with US crude. The Eliza, Maran Corona, and Maran Apollo, all chartered by Shell, have not moved far since loading full cargoes at Louisiana Offshore Oil Port (LOOP) at various points stretching back to early April. The Vitol-chartered Hunter Saga VLCC is sitting near Rotterdam with a US crude cargo at $100,000/d.

Other tankers — some of smaller sizes — are also sitting idle with US crude cargoes, though the reason may be port delays. The Agios Nikolas, a VLCC that Trafigura chartered on 6 February before the pandemic sapped oil demand, has been sitting idle in Taiwan for over a week, despite being initially booked for a standard US-Asia journey, not a short-term time charter.

Traders have booked at least 75 VLCCs, 47 Suezmaxes, and 36 Aframaxes on short-term time charters that include floating storage options, according to the Argus database.

By Nicholas Watt

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13/03/25

Dangote refinery buys first cargo of Eq Guinea crude

London, 13 March (Argus) — Nigeria's 650,000 b/d Dangote refinery has bought its first cargo of Equatorial Guinea's medium sweet Ceiba crude, according to sources with knowledge of the matter. Dangote bought the 950,000 bl cargo loading over 12-13 April from BP earlier this week, sources told Argus . Price levels of the deal were kept under wraps. Most Ceiba exports typically go to China. Around 18,000 b/d discharged there last year, while three shipments went to Spain and one to the Netherlands, according to Vortexa data. This year, two cargoes loading in February and March are signalling Zhanjiang in China, according to tracking data. Traders note that buying a Ceiba cargo is part of Dangote's efforts to diversify its crude sources. Last month the refinery bought its first cargo of Algeria's light sweet Saharan Blend crude from trading firm Glencore, which is due to be delivered over 15-20 March. Market sources said Dangote seems to have sourced competitively priced crude from Equatorial Guinea at a time when domestic grades are facing sluggish demand from Nigeria's core European market amid ample supply of cheaper Kazakh-origin light sour CPC Blend, US WTI and Mediterranean sweet crudes. Several European refineries are due to undergo maintenance in April, which is also weighing on demand. Nigeria's state-owned NNPC is currently in negotiations with the Dangote refinery about extending a local currency crude sales arrangement , which involves crude prices being set in dollars and Dangote paying the naira equivalent at a discounted exchange rate. Any changes to the terms of the programme may pressure Dangote to increase the amount of foreign crude in its slate. Refinery sources told Argus in January that Dangote will source at least 50pc of its crude needs on the import market and is building eight storage tanks to facilitate this. By Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nigeria's port authority raises import tariffs

13/03/25

Nigeria's port authority raises import tariffs

London, 13 March (Argus) — The Nigerian Ports Authority (NPA) has raised tariffs by 15pc on imports "across board", taking effect on 3 March, according to a document shown to Argus . The move comes as the independently-owned 650,000 b/d Dangote refinery continues to capture domestic market share through aggressive price cuts, pushing imported gasoline below market value in the country. Sources said that Dangote cut ex-rack gasoline prices to 805 naira/litre (52¢/l) today, from between 818-833N/l. The rise in NPA tariffs may add on additional cost pressures onto trading houses shipping gasoline to Nigeria, potentially affecting price competitiveness against Dangote products further. The move would increase product and crude cargo import costs, according to market participants. But one shipping source said the impact would be marginal as current costs are "slim", while one west African crude trader noted that the tariffs would amount to a few cents per barrel and represent a minor rise in freight costs. Port dues in Nigeria are currently around 20¢/bl, the trader added. One shipping source expects oil products imports to continue to flow in, because demand is still there. Nigeria's NNPC previously said the country's gasoline demand is on average around 37,800 t/d. Over half of supplies come from imports, the country's downstream regulator NMDPRA said. According to another shipping source, Dangote supplied around 526,000t of gasoline in the country, making up over half of product supplied. The refinery also supplied 113,000t of gasoil — a third of total total volumes in the country — and half of Nigeria's jet at 28,000t. By George Maher-Bonnett and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IEA says trade tensions clouding oil demand outlook

13/03/25

IEA says trade tensions clouding oil demand outlook

London, 13 March (Argus) — The IEA today downgraded its global oil demand growth forecast for 2025, noting a deterioration in macroeconomic conditions driven by rising trade tensions. It sees a larger supply surplus as a result, which could be greater still depending on Opec+ policy. The Paris-based agency, in its latest Oil Market Report (OMR), sees oil demand rising by 1.03mn b/d to 103.91mn b/d in 2025, down from a projected rise of 1.10mn b/d in its previous OMR. The IEA said recent oil demand data have underwhelmed, and it has cut its growth estimates for the final three months of 2024 and the first three months of this year. US President Donald Trump has imposed tariffs on various goods arriving in the US from China, Mexico and Canada, as well as on all imports of steel and aluminium. Some countries have retaliated with tariffs of their own on US imports, raising the prospect of a full-blown trade war. The IEA said US tariffs on Canada and Mexico "may impact flows and prices from the two countries that accounted for roughly 70pc of US crude oil imports last year." But it is still too early to assess the full effects of these trade policies on the wider oil market given the scope and scale of tariffs remain unclear and that negotiations are continuing, the IEA said. For now, the IEA's latest estimates see US demand growth this year slightly higher than its previous forecast. It sees US consumption increasing by 90,000 b/d to 20.40mn b/d, compared with a projected rise of 70,000 b/d in the prior OMR. The downgrades to its global oil demand forecast were mainly driven by India and South Korea. The agency also noted latest US sanctions on Russia and Iran had yet to "significantly disrupt loadings, even as some buyers have scaled back loadings." The IEA's latest balances show global supply exceeding demand by 600,000 b/d in 2025, compared with 450,000 b/d in its previous forecast. It said the surplus could rise to 1mn b/d if Opec+ members continue to raise production beyond April. Eight members of the Opec+ alliance earlier this month agreed to proceed with a plan to start unwinding 2.2mn b/d of voluntary production cuts over an 18 month period starting in April. The IEA said the actual output increase in April may only be 40,000 b/d, not the 138,000 b/d implied under the Opec+ plan, as most are already exceeding their production targets. The IEA sees global oil supply growing by 1.5mn b/d this year to 104.51mn b/d, compared with projected growth of 1.56mn b/d in its previous report. The agency does not incorporate any further supply increases from Opec+ beyond the planned April rise. The IEA said global observed stocks fell by 40.5mn bl in January, of which 26.1mn bl were products. Preliminary data for February show a rebound in global stocks, lifted by an increase in oil on water, the IEA said. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Экспортная пошлина на нефть в Казахстане в марте выросла

13/03/25

Экспортная пошлина на нефть в Казахстане в марте выросла

Riga, 13 March (Argus) — Ставка экспортной пошлины на нефть в Казахстане в марте увеличилась до $78/т с $77/т — в феврале. Среднее значение котировок сорта Kebco (cif Аугуста) и Североморского датированного в период мониторинга цен с 20 декабря по 20 февраля составило $78/барр. по сравнению с $77/барр. — в период предыдущего мониторинга, по данным министерства финансов Казахстана. С сентября 2023 г. ежемесячная ставка пошлины на экспорт нефти и нефтепродуктов в Казахстане меняется при изменении средней мировой цены на $1/барр. вместо прежних $5/барр. в пределах диапазона $25—105/барр. При средней рыночной цене нефти $25—105/барр. размер ставки вывозной таможенной пошлины рассчитывается по следующей формуле: ВТП=Ср*К, где ВТП — размер ставки вывозной таможенной пошлины на нефть и нефтепродукты в долларах США за тонну; Ср — средняя рыночная цена нефти за предшествующий период; К — поправочный коэффициент 1. При значении средней рыночной цены на нефть до $25/барр. размер ставки вывозной таможенной пошлины равен нулю. При цене свыше $105/барр. применяются ставки вывозной пошлины в диапазоне от $115/т до $236/т. Средняя рыночная цена определяется министерством финансов Казахстана ежемесячно на основании мониторинга котировок Kebco и Североморского датированного в течение двух предыдущих месяцев. Полученный результат мониторинга в соответствии с поправками математически округляется до целого числа. ________________ Больше ценовой информации и аналитических материалов о рынках нефти и нефтепродуктов стран Каспийского региона и Центральной Азии — в еженедельном отчете Argus Рынок Каспия . Вы можете присылать комментарии по адресу или запросить дополнительную информацию feedback@argusmedia.com Copyright © 2025. Группа Argus Media . Все права защищены.

Opec sticks to demand forecasts despite trade tensions

12/03/25

Opec sticks to demand forecasts despite trade tensions

London, 12 March (Argus) — Opec has kept its oil demand growth forecasts unchanged for both 2025 and 2026 on expectations that the global economy will adjust to volatile trade policies. US president Donald Trump has imposed tariffs on various goods arriving in the US from China, Mexico and Canada, as well as on all imports of steel and aluminium. Some countries have retaliated with tariffs of their own on US imports, raising the prospect of a full-blown trade war. But Opec is confident that the global economy can adapt. "Price pressures may weigh on global growth but are unlikely to disrupt overall growth momentum, which remains supported by resilient consumer demand and strong output in major emerging economies," Opec said in its latest Monthly Oil Market Report (MOMR). Opec also said that rising trade among emerging economies could partially offset tariff-related disruptions, but it warned that "downside risks need to be monitored given uncertainties in policy rollout and subsequent effects and impacts". Despite the uncertainty, Opec kept its oil demand forecast for this year and next unchanged for the second month in a row. For this year, the group sees oil demand growing by 1.45mn b/d to 105.2mn b/d, while in 2026 it sees consumption increasing by 1.43mn b/d to 106.63mn b/d. Opec's demand growth forecasts remain somewhat higher than those projected by the IEA and the US' EIA. In terms of supply, the group kept its non-Opec+ liquids growth forecast unchanged at 1mn b/d for both 2025 and 2026, with most of this growth seen coming from the US, Brazil and Canada. Opec+ crude production — including Mexico — rose by 363,000 b/d to 41.011mn b/d in February, according to an average of secondary sources that includes Argus . Opec puts the call on Opec+ crude at 42.6mn b/d in 2025 and 42.9mn b/d in 2026, unchanged from last month. Eight members of the wider Opec+ alliance earlier this month agreed to start increasing crude output from April, citing "healthy market fundamentals and the positive market outlook". By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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