Diesel trade dominates product tanker market

TProduct tankers are expected to be affected by diesel supply shortages following Russia’s decision to ban exports. “The world’s refineries are unable to produce enough diesel, denying economies the fuel they rely on to run industry and transportation and creating new inflation,” shipbuilder Exclusive Shipbrokers said in its latest weekly report. It’s causing it,” he said. Oil prices have risen about 15% over the past month to levels not seen since November 2022, with WTI ending the week at about $90 per barrel and Brent at about $94 per barrel. , which also has an impact on crude oil derivative prices. As a diesel. For example, the selling price of diesel in the United States rose to about $195, the highest level ever for this time of year, and comparable prices in Europe have increased 60% since the summer. Given the tight supply of oil, no one would argue that the situation could get even worse. ”

According to Xclusiv, “In early September, both Saudi Arabia and Russia announced that they would extend crude oil supply cuts until the end of this year, when oil demand increases depending on the winter period and temperatures. In addition, the impact of rising fuel prices Following complaints from motorists and farmers, Russia earlier this week imposed a temporary ban on exports of gasoline and diesel in an effort to stabilize the domestic market and control domestic prices. , does not apply to fuel supplied under intergovernmental agreements to member states of the Moscow-led Eurasian Economic Union, including Kazakhstan, Armenia and Kyrgyzstan.Russia has already decided to limit exports of seaborne diesel and light oil during September 2023 to 2023. This is a nearly 30% reduction compared to August 2018 exports, to around 1.7 million tons.Russian refineries typically produce twice the amount of diesel needed to meet domestic demand, According to IEA data, Russian refineries processed 5.6 million barrels of crude oil and exported 2.8 million barrels of oil products in 2021. Temporarily reduced exports of gasoline and diesel. Russia’s decision to impose a ban is likely to cause further disruption to trade in the tanker market. However, the severity of the impact on the market will depend on how “temporary” this decision is. As the global demand for product oil is stable or slightly increasing and the supply of Russian product oil is decreasing, ships used to transport Russian products are being released into the spot market for unauthorized trade. This could lead to an increase in the supply of ships, which could have a negative impact. “About the freight,” the shipbroker pointed out.

Meanwhile, “September is a happy month for bulker trade. The Baltic Dry Index rose to 1,569 points, a point not seen since May 12, 2023. The market on Thursday, September 21, 2023 , hit a 4-month high of 1,584 points, 70% higher than 919 points on June 2, 2023. The market is very uncertain about the future due to weaknesses in China’s real estate sector and awareness of Panama Canal issues. Despite China’s real estate sector facing many problems, China’s iron ore, steel and coal imports and exports (as mentioned in a previous report) appear to be on the rise. This rise, coupled with a series of recent policies taken by the Chinese government to promote growth and support the real estate market and the renminbi, has brought a lot of prospects to the future of the market. In particular, the average fare for the Handysize 7 T/C route has been increasing continuously since August 8, 2023, reaching USD 12,068 per day, while the average fare for the Supramax 10 T/C route is $14,907/day for only one, negative closing price since Aug. 8. Capesize 5 T/C route $17,274/day, Panamax 5 T/C route $17,274/day At US$ 15,164 per US$, ships of all sizes benefit owners and investors. These rates are likely due to China’s growth in dry bulk demand, rather than being primarily driven by the real estate sector. is proof that dry bulk maritime trade can keep its head held high even though it has not yet reached full speed.

Xclusiv concluded that “the lucrative dry bulk market leaves room for owners and investors to consider how to achieve next-day shipping and, more specifically, zero-emissions goals.” Ferosa Green Shipping has signed a fuel cell agreement with Norway’s Teco 2030 after announcing plans to build six new Ultramax vessels equipped with ammonia crackers to enable navigation on hydrogen fuel. It is believed that replenishing ammonia onboard ships and splitting it into hydrogen could be a solution to the storage and infrastructure challenges of hydrogen as a marine fuel. It remains to be seen whether they are right, as the first ship is expected to be delivered within 2026. ”
Nikos Roussanoglou, Greek Shipping News Around the World