U.S. Refineries in Worst Year Since Shale Boom Started
U.S. independent refiners such as Valero Energy Corp and Phillips 66 look set to post another quarter of disappointing earnings, putting the industry on track for its worst year since the U.S. shale boom began in 2011. The companies had hoped to rebound from a weak first quarter on the back of strong U.S. gasoline demand. But while U.S. motorists have taken to the highway in record numbers, refiners have been undone by record supplies of gasoline and diesel products. High volumes of imports, combined with refiners switching to maximum gasoline output earlier than usual…
Motiva to Trade Refined Products Apart from Co-owner Shell
Motiva Enterprises said on Thursday it aims to trade its own gasoline, diesel and the components needed to make them in a new organization separate from its co-owner, Royal Dutch Shell. Motiva, a 50/50 joint venture of Shell and Saudi Aramco , said in a statement that the move will more closely connect the company with fuels markets, customers and trading partners. But Motiva said it will still rely on Shell to trade crude oil. "With this change, we hope to provide greater value to them through more active participation in the market," Motiva Chief Executive Dan Romasko said in the statement.
Vietnam Raises Tariff Caps on Petrol and Diesel Imports
Vietnam has raised tariffs caps on imports of fuel, petrol and diesel products, the Ministry of Finance said on Thursday, a move which could translate into higher state income given the country's rising imports of these products. This follows a drop in global oil prices that will hit the country's finances. The Vietnamese government has said every $1 fall in the oil price will create a loss of 1 trillion dong ($46.95 million) in the state budget. Brent crude oil steadied around $70 a barrel on Thursday as investors searched for a stable price range after a near 40 percent fall since June.
Long-Range Clean Tanker Rates Hit 8-Month High
Long-range clean tanker rates stayed firm on Monday extending a recent rally with firmer cargo demand bolstering sentiment further. Long Range 1 tankers, carrying 55,000 tonne loads from the Middle East Gulf (MEG) to Japan, reached W117.50 in the Worldscale measure, or $11,453 a day when translated into average earnings, the highest since mid September last year. That compared with W116.14 or $11,156 a day on Friday and W107.45 or $8,112 a day last Monday. "With plenty of cargoes in the market and tonnage looking fairly thin far out, rates look likely to remain firm for the remainder of May," broker EA Gibson said.
Trans Atlantic Tanker Rates Higher
Clean tanker rates on the transatlantic route edged higher on Monday helped by light bookings although the market continued to struggle with a glut of vessels. Rates for medium-range (MR) tankers for 37,000 tonne cargoes on the TC2 route from Rotterdam to New York were at W124.38 in the Worldscale measure, or $8,306 a day when translated into average earnings. That compared with W122.50 or $8,048 a day on Friday and W129.17 or $9,368 last Monday. "Rates on the Europe - U.S. East Coast route declined 11.1 percent week-on-week as available capacity continued to put downside pressure on rates for cargoes out of the region…
