Ukraine Russia

Sanctions effect begins: Crude tankers forced onto longer voyages

Tanker investors have been getting cold feet this winter. Spot rates are down sharply from November and stocks are off earlier highs. Yet the bullish tanker thesis — war-induced trade inefficiencies, post-COVID reopening, new vessel capacity that’s about to fall off a cliff — hasn’t changed.

After spot rates “began to ease from highs that were completely unsustainable” came “the predictable selloff in the equities,” said Evercore ISI analyst Jon Chappell in a research note on Friday.

“We’ve been...

https://www.freightwaves.com/news/sanctions-effect-begins-crude-tankers-forced-onto-longer-voyages

Will sanctions on Russian diesel pay off for product tankers?

European Union and G-7 sanctions on Russian crude exports kicked in Dec. 5, and contrary to predictions, crude tanker rates didn’t spike following trade disruptions. They sank.

Sanctions on Russian exports of refined products begin in just four weeks, on Feb. 5. It has been widely predicted that this will boost rates for product tankers — the ships that carry cargoes such as diesel, gasoline and jet fuel. 

Some are now questioning that assumption.

Executives of Scorpio Tankers (NYSE: STNG), the...

https://www.freightwaves.com/news/will-sanctions-on-russian-diesel-pay-off-for-product-tankers

Crude tanker rates down double digits after Russia sanctions debut

charts showing crude tanker rates

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The EU ban on Russian seaborne crude imports went into effect a month ago. This market-altering...

https://www.freightwaves.com/news/crude-tanker-rates-down-double-digits-after-russia-sanctions-debut

Could Russia sanctions work in practice even if they fail on paper?

The European Union’s ban on seaborne imports of Russian crude goes into effect on Monday. As of Thursday, the G-7 and EU price caps meant to complement that ban had still not been finalized. 

Western sanctions are designed to curb Russian profits while simultaneously keeping global markets supplied with petroleum. 

On paper, what has transpired to date looks like a convoluted, naively designed and messy fiasco. In practice, the plan might work, at least partially — though not the way you’d think...

https://www.freightwaves.com/news/how-russia-sanctions-could-work-in-practice-even-if-they-dont-on-paper

Daily Infographic: Ukraine Crisis Expected to Speed Up Shift to Renewables

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To view more FreightWaves infographics, click here

The post Daily Infographic: Ukraine Crisis Expected to Speed Up Shift to Renewables appeared first on Frei...

https://www.freightwaves.com/news/daily-infographic-ukraine-crisis-expected-to-speed-up-shift-to-renewables

Sanctions are about to slam Russia’s still-booming oil export trade

The Putin regime has been enriching itself through oil exports ever since Russia invaded Ukraine. It still is. Russian oil sales continue to boom as of late October.

Russian seaborne crude exports are averaging 3.4 million barrels a day this month, up 2.5% year on year, according to data from Kpler. In the eight months since the invasion, Russia’s average crude exports jumped 12% compared to the eight months prior to the invasion.

The good news for those seeking to punish Russian President...

https://www.freightwaves.com/news/sanctions-are-about-to-slam-russias-still-booming-oil-export-trade

US DOT to help oversee Ukraine infrastructure rebuilding

Oil refinery fire in Ukraine.

The U.S. secretaries of transportation and commerce announced Wednesday the signing of a joint statement of intent with their infrastructure counterpart in Ukraine to oversee current and future rebuilding requirements in the war-torn country.

The U.S.-Ukraine Infrastructure Task Force will boost efforts to support private-sector companies in America that will be involved in Ukraine’s reconstruction, with an emphasis on transportation and energy.

“We’re proud to establish the U.S.-Ukraine...

https://www.freightwaves.com/news/us-dot-to-help-oversee-ukraine-infrastructure-rebuilding

G7’s grand plan to squeeze Russia oil windfall hinges on tanker shipping

a photo of tankers shipping in Russia

They say you can’t have your cake and eat it too. The G7 countries, led by the U.S., think they can. They want to keep Russian crude oil and refined products exports flowing so that fuel prices in their own countries don’t skyrocket, and they want to simultaneously slash Russia’s profits from its own exports.

Tanker shipping buy-in will be pivotal to success or failure. The G7 plan would cap the price of Russian exports and levy U.S. sanctions against companies that transport Russian petroleum...

https://www.freightwaves.com/news/g7-grand-plan-to-squeeze-russia-oil-windfall-hinges-on-tanker-shipping

Tankers could profit if US restricts gasoline and diesel exports

photo of a tanker off Texas

America’s refiners are producing near-record volumes of gasoline and diesel and selling historically high amounts to overseas buyers. Why not force exports lower via government intervention, keeping more American-made fuel in America and cutting costs for domestic consumers?

The Biden administration appears to be pondering that very question. The answer, according to critics, is that it won’t work. They say refined product export restrictions would be a net negative for consumers. Most would pay...

https://www.freightwaves.com/news/tankers-could-profit-if-us-restricts-gasoline-and-diesel-exports

The sinking price of ship fuel: Near prewar levels after summer plunge

photo of a container ship getting fuel

It was yet another warning sign on inflation: The price of fuel for commercial ships spiked after Russia invaded Ukraine and hit all-time highs in May and June. But that trend has now reversed. The price of ship fuel plunged in July and August and is now back to roughly prewar levels.

According to Ship & Banker, the average price for fuel known as very low sulfur fuel oil (VLSFO, sulfur content: 0.5%) at the world’s top 20 refueling hubs was $800 per ton as of Friday. That’s down 29% from the...

https://www.freightwaves.com/news/the-sinking-price-of-ship-fuel-near-prewar-levels-after-summer-plunge

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