/twelve-empty-supertankers-reveal-truths

  • Twelve Empty Supertankers Reveal Truths About Today’s Oil Market - Bloomberg
    https://www.bloomberg.com/news/articles/2019-02-21/twelve-empty-supertankers-reveal-truths-about-today-s-oil-market

    They are slowly plowing their way across thousands of miles of ocean toward America’s Gulf of Mexico coastline. As they do, twelve empty supertankers are also revealing a few truths about today’s global oil market.

    In normal times, the vessels would be filled with heavy, high sulfur Middle East oil for delivery to refineries in places like Houston or New Orleans. Not now though. They are sailing cargo-less, a practice that vessel owners normally try to avoid because ships earn money by making deliveries.

    The 12 vessels are making voyages of as much as 21,000 miles direct from Asia, all the way around South Africa, holding nothing but seawater for stability because Middle East producers are restricting supplies. Still, America’s booming volumes of light crude must still be exported, and there aren’t enough supertankers in the Atlantic Ocean for the job. So they’re coming empty.

    What’s driving this is a U.S. oil market that’s looking relatively bearish with domestic production estimates trending higher, and persistent crude oil builds we have seen for the last few weeks,” said Warren Patterson, head of commodities strategy at ING Bank NV in Amsterdam. “At the same time, OPEC cuts are supporting international grades like Brent, creating an export incentive.

    The U.S. both exports and imports large amounts of crude because the variety it pumps — especially newer supplies from shale formations — is very different from the type that’s found in the Middle East. OPEC members are likely cutting heavier grades while American exports are predominantly lighter, Patterson said.

    • Trois jours plus tard, Bloomberg remet une couche…

      des supertankers traversent l’Atlantique chargés d’eau de mer (sur ballast, quoi…)

      Rise of Shale Oil and OPEC Cuts Leave Supertankers Empty - Bloomberg
      https://www.bloomberg.com/opinion/articles/2019-02-24/rise-of-shale-oil-and-opec-cuts-leave-supertankers-empty

      Supertankers hauling seawater across the Atlantic? That’s just one of the odder results of the U.S. shale boom.

      Crude oil has always flowed backwards and forwards across the world’s oceans. A typical voyage by one of the global fleet of around 750 of the giant ships currently in service might see it haul Middle Eastern exports across the Atlantic to a refinery on the U.S. Gulf coast, then pick up a cargo from Venezuela for delivery to China or India, before returning to the Persian Gulf.

      Vessels only earn money when they’re full, so being able to haul cargoes in both directions across the seas makes a great deal of sense for ship owners. But soaring U.S. production, OPEC output cuts and sanctions on Iran and Venezuela are turning the global crude oil trade on its head.
      […]
      Add to this a pickup in the flow of oil out of the Caribbean – Venezuela is shipping more of its crude east now that U.S. sanctions prevent it from targeting its traditional buyers on the Gulf coast.