Boat Shoes said:
Donald J. Trump
@realDonaldTrump
Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference...Prices to high! He has agreed!
6:37 AM - Jun 30, 2018
While higher prices are good for those long in the sector, most of America is short in the sector. It makes sense for the rest of the economy that the prices don't get too high. Plus, long term, a stable price is better for the industry than the boom and bust.JTA1029 said:
1 - I wish he would at least figure out proper use of to and too.
2 - Let the prices climb. Better for my bank account.
Cyp0111 said:
I think everyone is really overlooking the demand side. Emerging markets are sucking wind and now dealing with life wo fuel caps
https://oilprice.com/Energy/Oil-Prices/The-Critical-Chokepoint-That-Could-Send-Oil-To-250.htmlQuote:
The Critical Chokepoint That Could Send Oil To $250
Crude oil prices could jump as high as US$250 a barrel if Iran goes through with its threat to close the Strait of Hormuz in response to U.S. pressure on oil buyers to cut their Iranian purchases to zero, RT reports, quoting analysts.
The most bullish among these analysts was Artem Avinov from online broker TeleTrade, who saw prices skyrocketing to US$250 a barrel if the Strait of Hormuz is blocked, disrupting about 17 million bpd in seaborne oil trade.
https://oilprice.com/Energy/Energy-General/Russias-Finance-Ministry-Warns-Of-Another-Price-Collapse.htmlQuote:
Russia's Finance Ministry Warns Of Another Price Collapse
If prices remain at their current level, another collapse could be around the corner, the Russian Finance Ministry has warned in a report, cited by Sputnik.
According to the report, the long-term equilibrium price level for crude oil is currently around US$50-60 a barrel, but actual prices are substantially higher than that and "the current growth should be regarded as temporary [] If oil prices continue to remain above long-term equilibrium levels, the price collapse will repeat again."
The report attributed the price rise to the sharp decline in Venezuelan oil production and the U.S. sanctions against Iran that seek to reduce oil production in the country to zero. The authors, however, noted that the next price collapse could be avoided by boosting production in countries including the United States, Angola, Canada, and Brazil.
While the Russian Finance Ministry worries about a price crash, others are warning about a spike above US$100 per barrel if Iran makes good on its latest threat to close the Strait of Hormuz in retaliation for the U.S. sanctions.
SpreadsheetAg said:
Wait!
I am confused, the same writer that wrote the above at 9:30 AM... then wrote this at 11:00 AM:https://oilprice.com/Energy/Energy-General/Russias-Finance-Ministry-Warns-Of-Another-Price-Collapse.htmlQuote:
Russia's Finance Ministry Warns Of Another Price Collapse
If prices remain at their current level, another collapse could be around the corner, the Russian Finance Ministry has warned in a report, cited by Sputnik.
According to the report, the long-term equilibrium price level for crude oil is currently around US$50-60 a barrel, but actual prices are substantially higher than that and "the current growth should be regarded as temporary [] If oil prices continue to remain above long-term equilibrium levels, the price collapse will repeat again."
The report attributed the price rise to the sharp decline in Venezuelan oil production and the U.S. sanctions against Iran that seek to reduce oil production in the country to zero. The authors, however, noted that the next price collapse could be avoided by boosting production in countries including the United States, Angola, Canada, and Brazil.
While the Russian Finance Ministry worries about a price crash, others are warning about a spike above US$100 per barrel if Iran makes good on its latest threat to close the Strait of Hormuz in retaliation for the U.S. sanctions.
What are those pesky Ruskies up to with all this disinfo?
Ulrich said:
I've seen several articles from oilprice.com lately and been very unimpressed. Not exactly click bait, but it wasn't good analysis either.
OK. Maybe the article was referring to the hull lining or some specific inspection rather than all of them. Dunno.third coast.. said:
Ships need a he'll of a lot more inspections and certs etc than at 15 years. It's crazy though how young some of the board going to the breakers are
THEREs typically a 5-year visual (UWILD), then a 10 year more in depth inspection in dry dock, IIRC.techno-ag said:OK. Maybe the article was referring to the hull lining or some specific inspection rather than all of them. Dunno.third coast.. said:
Ships need a he'll of a lot more inspections and certs etc than at 15 years. It's crazy though how young some of the board going to the breakers are
SpreadsheetAg said:THEREs typically a 5-year visual (UWILD), then a 10 year more in depth inspection in dry dock, IIRC.techno-ag said:OK. Maybe the article was referring to the hull lining or some specific inspection rather than all of them. Dunno.third coast.. said:
Ships need a he'll of a lot more inspections and certs etc than at 15 years. It's crazy though how young some of the board going to the breakers are
So, what it looks like is, from what you are saying there are inspections every 5 years. It's just the author omitted that fact, and focused on the older ships that are either coming up on their 15 year mark or 20 year mark. Perhaps those are more expensive "surveys" at $2 million, or by that age they think anything that old is not worth another $2 million.Quote:
The average age of VLCCs going to scrap this year is 18.8 years, the youngest since 2013, according to VesselsValue. A ship's average operational age is around 25 years, but after 15 years in the water, the vessel has to go through an extensive survey to determine if it is seaworthy. "An average survey costs about $2 million, and you have to do it again at 20 years, so a number of owners opt to scrap instead," Mr. Sharma said.
Quote:
By
Costas Paris
New U.S. crude export facilities on the Gulf Coast may bring the world's troubled business of operating big tankers a needed new market for transporting oil.
A trio of American energy logistics firms is preparing to build a terminal at the Port of Corpus Christi in Texas capable of handling very large crude carriers, or VLCCs, adding to a flurry of activity for U.S. oil exports that reached a record 2.3 million barrels a day last week.
Buckeye Partners , BPL +1.88% Phillips 66 PSX +0.20% Partners and refiner Andeavor ANDV -0.15% formed a joint venture to build the facility at the South Texas Gateway Terminal, a major transit point for U.S. energy exports heading to international markets.
Phillips 66 and Andeavor will be the launch customers for shipping crude out of the terminal, with two deep-water docks capable of berthing VLCCs, along with 3.4 million barrels of oil storage. The South Texas Gateway Terminal is scheduled to kick off operations next year.
The project will add capacity to a booming U.S. crude trade.
The U.S. Energy Information Administration says crude exports recently averaged around 1.6 million barrels a day over four weeks. Growing production of crude, refined products and liquefied natural gas could make the U.S. a net energy exporter by 2022, according to the EIA's Annual Energy Outlook.
Tanker owners are hoping the growing U.S. exports will boost an international crude transport market that has remained in a slump this year.
Freight rates for VLCCs recently slumped to near record lows, industry analysts say, with a glut of ships pushing daily rates to an average $6,000, far from the break-even rate of around $22,000.
"There's a lot of bleeding out there, and there is more to come this year," said one Singapore broker, noting daily rates stood at $26,000 in the same period last year.
Big, listed operators kicked of this year with steep losses in the first quarter.Euronav, one of the world's biggest VLCC owners, lost $39 million in the three months ending March 31. "Rates will stay under pressure until this process of rebalancing (supply and demand) is much further advanced," Chief Executive Paddy Rogers said in announcing the earnings.Quote:
'Rates will stay under pressure until this process of rebalancing is much further advanced.'
Paddy Rogers, CEO of Euronav.
Crude stockpiles have been rising even as oil prices have pushed up to around $70 on global markets. On Wednesday, the EIA reported the amount of crude in storage rose by 6.2 million barrels last week, exceeding average analyst expectations for a 700,000-barrel build.
For crude carriers, "The overall message is that for the rest of the year, global oil stocks will remain pretty significant, which also means a significant lack of demand for oil transport," Peter Sand, chief shipping analyst for ship broker BIMCO, said in an interview.
Tanker operators have continued to bulk up capacity despite falling prices. Mr. Sand said there were 54 orders of VLCCs last year up from only 14 in 2016, and there have been another 20 new orders so far this year.
"Just like container shipping, size does matter in oil transport, with VLCCs becoming the weapon of choice, especially with increased crude imports into China," he said.
Brokers for oil transport estimate that tanker overcapacity is hovering at around 18% above demand.
