Argus: Tanker Freight

Argus Tanker Freight
formerly Argus Freight
Issue 22-5 | Tuesday 20 September 2022
Contents Key prICES
Dirty tankers 2-6 Tanker rates

TCE (non-
Clean tankers 7-13 Size
Route Rate ± $/t scrubber)
'000t
Tanker TCE rates 14 $/day
Forward freight and demurrage 15 Very large crude carriers (VLCCs)
Crude-specific freight 16-17 Mideast Gulf-East 270 99.00 +9.00 21.59 64,836
Bunkers18 West Africa-China 260 100.00 nc 33.36 65,003
USGC-China 270 10,750,000 +50,000 39.81 46,258
News19-25
Suezmax
Mideast Gulf-China 130 - - 32.23 44,348
Editor’s Word West Africa-India 130 4,825,000 nc 37.12 -
Aframax
Kozmino-N China 100 1,550,000 nc 15.50 75,805
VLCC rates remain buoyant amid resurgent demand for Asia-
Primorsk-UKC 100 180.00 nc 15.28 -
bound crude shipments. Suezmax rates steady in the Mideast USGC-UKC 70 220.00 nc 41.12 34,283
Gulf, west Africa and Mediterranean. US Gulf MR rates flat, Long range (LR) tankers
ending week-long slide. Mideast Gulf-Japan 75 270.00 nc 61.80 58,119
Mideast Gulf-S Korea 55 340.00 nc 71.47 -
USGC-N Brazil 60 - - 37.10 -
Headlines Medium range (MR) tankers
UKC-USAC 37 300.00 +15.00 42.54 27,159
Suez Canal tanker transit charges rise USGC-Pozos 38 900,000 nc 23.68 24,627
Most Puerto Rico ports reopen after hurricane USGC-Chile 38 2,225,000 nc 58.55 13,900
South Korea-Singapore 35 1,900,000 nc 54.29 82,019
US senators aim to codify Russian oil price cap
Weight of freight
UKC-USAC 37kt
Rate ($/t) 42.54 Kozmino-N China 100kt
Weight of Freight for Rate ($/bl) 2.10
5% Weight of Freight
gasoline shipments
USGC-UKC 70kt for ESPO crude ship- 2.5%
Rate ($/bl) 5.27 MEG-East 270kt ments
11 days
Rate ($/bl) 3.03
Weight of Freight for
5.7% Weight of Freight for
WTI crude shipments 3.4 days
Basrah Medium crude 3.2%
16.8 days shipments
USGC-Chile 38kt
USGC-China 270kt 19.6 days 22.2 days
Rate ($/t) 58.55
Rate ($/bl) 5.10
15%
diesel shipments Weight of Freight for
5.5%
14.6 days
WTI crude shipments
MEG-Japan 55kt
Rate ($/t) 76.68
11.4%
naphtha shipments
51.1 days
Rates on dirty tanker routes shown in $/bl
Rates on clean tanker routes shown in $/t
Weight of Freight is the share of freight in the delivered cost of a commodity
Copyright © 2022 Argus Media group Available on the Argus Publications App
Лицензия зарегистрирована на: Ekaterina Sablina, Argus Media
Argus Tanker Freight Issue 22-5 | Tuesday 20 September 2022
DIRTY TANKERS - Europe, Middle East and Africa
Mideast Gulf Aframax down, Med rates surge Dirty tanker rates - Europe, Middle East, Africa
Mideast Gulf Aframax rates fell, while those in the Mediter- Size
Route Rate ± $/t
'000t
ranean rose facing opposite prospects for demand. Suezmax
Middle East
rates were steady in the Mideast Gulf, west Africa, and Medi-
Mideast Gulf-UKC/Med 280 55.50 +2.50 15.17
terranean. And VLCC rates in the Mideast Gulf continued to Mideast Gulf-USGC 280 52.50 +2.50 18.33
rise. Mideast Gulf-East 270 99.00 +9.00 21.59
Mideast Gulf and west Africa VLCC market Mideast Gulf-Singapore 270 100.00 +9.00 14.28
Very large crude carrier (VLCC) rates in the Mideast Gulf Mideast Gulf-west coast India 270 110.00 +5.00 7.95
Mideast Gulf-Med 140 65.00 nc 11.04
continued to tick up on Tuesday, although chartering activ-
Mideast Gulf-China 130 - - 32.23
ity was a little slower on the day, suggesting charterers are Mideast Gulf-east Asia 130 140.00 nc -
starting to hold back their cargoes. Mideast Gulf-Singapore 130 - - 19.81
The Mideast Gulf to east Asia rate rose by WS9 to WS99. Mideast Gulf-west coast India 130 145.00 nc 9.76
Mideast Gulf-east Asia, fuel oil 80 220.00 -2.50 30.38
Chinese refiner Hengli put the Hong Kong Spirit on sub-
Mideast Gulf-west coast India 80 215.00 -7.50 15.80
jects to China at that level loading from 3-5 October. While Red Sea-China 80 225.00 -2.50 53.30
Taiwan’s CPC put the DHT Lotus on subjects to Taiwan al at Northern Europe
WS99 and loading from 5 October. South Korea’s SK Energy North Sea-northeast Asia* 270 9,750,000 +500,000 36.11
was rumoured to have put a vessel on subjects from the Baltic-Med 100 150.00 nc 25.58
Primorsk-UKC 100 180.00 nc 15.28
Mideast Gulf to South Korea at WS102.5 loading from 6-8
Cross UKC 80 152.50 +2.50 9.17
October, but it had yet to be confirmed. UKC-Med 80 117.50 +2.50 16.84
In west Africa, rates held broadly steady with little activ- UKC-US Atlantic coast 80 105.00 +2.50 14.99
ity reported in the region. The west Africa to China rate UKC-USGC fuel oil 55 200.00 nc 38.18
Baltic-Med fuel oil 30 465.00 +35.00 71.28
held at WS100. But rates to India did rise. The to India’s west
Baltic-UKC fuel oil 30 475.00 +25.00 41.75
coast rose by $290,000 to $7.25mn, while the rate to India’s Black Sea and Mediterranean
east coast rose by $160,000 to $7.55mn. Indian state-owned Novorossiysk-Med 140 177.50 nc 17.16
refiner IOC put the Kitos on subjects from west Africa to Black Sea-east Asia* 135 5,900,000 nc 43.70
Vadinar at $7.25mn loading from 15-16 October. Black Sea-Med 135 185.00 nc 17.65
Black Sea-Singapore* 135 5,300,000 nc 39.26
Mideast Gulf Aframax rates fall
Black Sea-west coast India* 135 4,900,000 nc 36.30
Aframax rates for eastbound shipments from the Mideast Cross Med 135 160.00 nc 9.89
Gulf decreased on as demand was limited and supplies were Med/Black Sea-east Asia* 135 5,500,000 nc 40.74
high. Med-east Asia* 135 5,100,000 nc 37.78
Med-Singapore* 135 4,500,000 nc 33.33
Aframax freight rates from the Mideast Gulf to east Asia
Med-USGC 135 100.00 nc 20.64
and to the west coast of India dropped by WS2.5 and WS7.5 Black Sea-Med 80 200.00 +20.00 19.08
to WS220 and WS215, respectively. Rates moved lower espe- Black Sea-UKC 80 185.00 +20.00 28.21
cially towards the west coast of India, because of high com- Cross Med 80 190.00 +35.00 13.38
Med-UKC 80 170.00 +35.00 19.94
Med-USGC 80 130.00 +35.00 27.53
VLCC rates WS Med-USGC fuel oil 55 200.00 nc 43.54
Black Sea -Med fuel oil 30 505.00 nc 48.58
Cross Med fuel oil 30 350.00 +20.00 23.10
West Africa-China 260kt West Africa
Mideast Gulf-Asia Pacific 270kt
West Africa-China 260 100.00 nc 33.36
110
West Africa-east coast India* 260 7,550,000 +160,000 29.04
100 West Africa-Singapore 260 101.00 nc 26.48
90 West Africa-USGC 260 103.50 nc 20.76
West Africa-west coast India* 260 7,250,000 +290,000 27.88
80
West Africa-east coast India* 130 4,900,000 nc 37.69
----
70 West Africa-India* 130 4,825,000 nc 37.12
West Africa-UKC/Med 130 135.00 nc 21.24
60
West Africa-USGC 130 130.00 nc 26.08
50 West Africa-west coast India* 130 4,750,000 nc 36.54
40 Delays
Turkish Straits NB 1.0 nc -
30
Turkish Straits SB 1.0 nc -
25 Mar 22 25 May 22 22 Jul 22 20 Sep 22 * $ lumpsum
Copyright © 2022 Argus Media group Page 2 of 25

Issue Ref: 130219

DIRTY TANKERS - Europe, Middle East and Africa

Mideast Gulf to Asia-Pacific dirty tanker rates $/t
petition from Indian-flagged vessels. India-state controlled
refiner MRPL booked both the Desh Samman and PS Trieste
Mideast Gulf-Singapore 80kt
at WS203 for its two 80,000t shipments from Mina Al Ahma- Mideast Gulf-China 130kt
di, Kuwait to New Mangalore, loading from 5 and 6 October, Mideast Gulf-Asia Pacific 270kt
respectively. The fixture rate for these fixtures might not be 35
repeatable, as MRPL’s fixtures are concluded using their L1 30
system, which is basically a reverse auction system, so rates
25
were reportedly concluded at a low level as competition was ----
steep. But freight rates could come under more downward 20
pressure, if tonnage supplies remain in surplus. On cargoes, 15
Glencore’s trading arm ST Shipping sought a vessel for its
80,000t shipment from Rudham, Yemen to east Asia, loading 10
from 5 October. 5
While freight rates for Aframax vessels on the Mideast 1 Apr 22 31 May 22 26 Jul 22 20 Sep 22
Gulf to the west coast of India route were lower compared
to rates bound to east Asia, initial estimates for Argus TCE
rates before Singapore’s market close, for the west coast of
European dirty tanker rates $/t
India remained around $2,100/d higher.
Suezmax shipments from the Mideast Gulf to east Asia
Baltic-UKC 30kt UKC-USGC 55kt
and to the west coast of India were stable at WS140 and Primorsk-UKC 100kt
WS145, respectively. A firm outlook for the VLCC market 800
kept rates stable. Tonnage supplies for VLCCs were thin, on 700
higher chartering activities.. On cargoes, Indian state-owned
600
refiner Bharat Petroleum (BPCL) remained in the market for
its 130,000t and 118,000t shipments from the Mideast Gulf 500
----
to the west coast of India, loading from 28 September and 3 400
October, respectively.
300
Mediterranean Aframax rates rise
Rates for Aframax vessels loading in the Mediterranean rose 200
significantly on Tuesday, under pressure from tight sup- 100
ply and greater demand, particularly from charterers with 25 Mar 22 25 May 22 22 Jul 22 20 Sep 22
cargoes in Libya.
The 80,000t cross-Mediterranean rate rose by WS35 to
WS190. Italy’s Saras put the Wonder Musica on subjects from showing no Aframax cargoes. The Black Sea to Mediterra-
Bouri, Libya to Sarroch at WS195 loading from 27 September. nean rate rose by WS20 to WS200, while the cross-UK Con-
ExxonMobil put the Olib on subjects from Es Sider, Libya to tinent rate ticked up by WS2.5 to WS152.5. Trader Vitol put
the UK Continent at WS175 loading from 29 September. the Jatuli on subjects from the North Sea to the UK Conti-
The shipping arm of Azerbaijan's state-owned SOCAR, nent on subjects at that level loading from 24-25 September.
UML put the Syros Warrior on subjects from Ceyhan, Turkey Rates were steady for the larger Suezmax vessels across
to the Mediterranean at WS182.5 loading from 2 October. the Mediterranean, Black Sea, and west Africa on Tuesday.
Hungary’s MOL put the Rava on subjects from Sidi Kerir,
Egypt to the Mediterranean at WS190 loading from 27 Sep-
tember. The Sidi Kerir terminal is a transit point for Mideast
Gulf crudes and is situated at the end of the Sumed pipeline,
an alternative to the Suez Canal, for which transit charges
will rise from the beginning of next year.
Aframax rates rose in the Black Sea and North Sea as
well, buoyed by the active Mediterranean market. But car-
goes and fixtures appear few and far begin at present in the
Black Sea with the preliminary October schedule CPC Blend

DIRTY TANKERS - Americas
VLCC gains extend further Dirty tanker rates - Americas

Rates for VLCC shipments in the dirty Americas tankers mar- Size
Route Rate ± $/t
'000t
ket continued to rise to their highest levels since April 2020,
Caribbean-China* 270 10,550,000 +50,000 39.07
additionally lifting demand for Suezmax shipments amid a
Caribbean-Singapore* 270 9,550,000 +50,000 35.37
day of steady chartering activity.
Caribbean-WC India* 270 9,500,000 nc 35.19
All Asia-bound VLCC rates increased by $50,000, pushing USGC-China* 270 10,750,000 +50,000 39.81
the US Gulf coast-China rate to $10.75mn lump sum, despite USGC-China (STS)* 270 10,500,000 +50,000 38.89
a lack of chartering activity. Rates were supported by lim- USGC-Rotterdam* 270 5,000,000 nc 18.52
ited VLCC supply, which was tightened because of a flurry of USGC-Singapore* 270 9,750,000 +50,000 36.11
deals across the Atlantic basin last week. USGC-South Korea/Japan* 270 10,750,000 +50,000 39.81
USGC-WC India* 270 9,750,000 +50,000 36.11
SK Energy sought a US Gulf coast-South Korea voyage
Brazil-China 260 99.00 nc 37.49
from 18-20 October. Shell and Petrogal each sought a VLCC Caribbean-UK continent 150 120.00 +5.00 20.08
for voyage out of Brazil with discharge options in the US USGC-Europe 150 120.00 +5.00 23.41
west coast and Asia, respectively. Caribbean-Panama 130 145.00 nc 6.08
Suezmax rates climb on renewed demand Caribbean-USGC 130 135.00 nc 11.48
Vitol placed the Sonangol Namibe Suezmax on subjects for Guyana-Panama 130 145.00 nc 10.14
Panama-USWC 130 125.00 nc 14.04
a US Gulf coast-Europe voyage from 2-4 October at WS120,
USGC/Caribs-Singapore* 130 6,250,000 +250,000 48.08
lifting the rate on the route by WS5 to that level.
USGC-China* 130 6,750,000 +250,000 51.92
Petrobras placed the Seaviolet Suezmax on subjects for Esmeraldas-Los Angeles 100 - - 16.45
a US Gulf coast-Brazil from late September at WS115 after Caribbean-UK continent 70 220.00 nc 37.80
failing to fix the Front Loki Suezmax for voyage on the route, Caribbean-USGC 70 250.00 nc 24.33
and sought an additional Suezmax for a Brazil-Israel voyage. East coast Mexico-USGC 70 270.00 nc 13.53
USGC-east coast Canada 70 225.00 nc 29.59
Charterers placed Suezmaxes on subjects for Caribbean-
USGC-UK continent 70 220.00 nc 41.12
US Gulf coast, US Gulf coast-west coast India, and Brazil-
Caribbean-USGC 50 365.00 nc 35.51
Spain voyages from October. East coast Mexico-USGC 50 365.00 nc 16.57
Repsol sought a Suezmax for an east coast South Ameri- Ecuador-USWC 50 380.00 nc 46.66
ca-Europe voyage from 8-10 October. Esmeraldas-Houston 50 - - 32.31
Increased Asian crude demand and tightened Suezmax USGC Aframax reverse lightering* 50 515,000 nc -
* $ lumpsum
tonnage lifted the US Gulf coast-China and US Gulf coast-Sin-
gapore Suezmax rates by $250,000 to $6.75mn and $6.25mn, Dirty tanker rates - Jones Act (weekly)
respectively. Route Size '000bl $/bl ±
Total and Unipec failed to fix Suezmaxes for a US Gulf Corpus Christi-Delaware Bay 260-330 4.52 -0.13
coast-Europe and Caribbean-Panama voyages. Corpus Christi-St. James 260-330 2.27 -0.05
Valero placed the New Ability Aframax on subjects for an Corpus Christi-St. James 140-260 3.27 -0.05
east coast Mexico-US Gulf coast voyage from 24 September
at WS270, holding the rate on the route flat at that level. US-China dirty tanker rates $/t
USGC-China 130kt USGC-China 270kt

60
50
40
----
30
20
10
29 Mar 22 25 May 22 25 Jul 22 20 Sep 22

DIRTY TANKERS - Asia-Pacific
Southeast Asia Aframax rates hold Dirty tanker rates - Asia-Pacific

Aframax freight rates from southeast Asia region were stable Size
Route Rate ± $/t
'000t
as fundamentals remained relatively unchanged.
Southeast Asian Aframax rates to east coast Australia, Kozmino-Chiba* 100 1,550,000 nc 15.50
and from Indonesia to Japan both held at WS230. Freight Kozmino-north China* 100 1,550,000 nc 15.50
rates in the short-term could be positional and may see Kozmino-Singapore* 100 1,590,000 nc 15.90
some volatility. Rates for prompt loading cargoes could see Kozmino-Yosu* 100 1,485,000 nc 14.85
lower rates, if spot vessel availabilities remained in surplus. Indonesia-Japan 80 230.00 nc 30.77
SE Asia-EC Australia 80 230.00 nc 38.89
But freight rates could also be concluded at a higher level,
* $ lumpsum
if bookings were concluded for forward dates, a participant
said, as tonnage availabilities were thin for the early- to mid-
October loading window.
Both Chinese state-owned Sinopec and Chinese inde- Workspaces:
pendent refiner Rongsheng jointly booked the Archelaos for
an 80,000t fuel-oil shipment from Port Klang, Malaysia to Crude Imports + Freight – China
Crude + Freight - Atlantic Basin
Zhoushan, loading from 21 September. It emerged that oil
Crude Exports + Freight – US
trader Chimbusco replaced the Atlantis which it previously Crude Imports + Freight - India
booked at WS237.5 on 15 September with the Sea Holly for
its 80,000t fuel-oil shipment from Singapore to Hong Kong, • These Workspaces are templates, curated by the Freight
editorial team
loading from 23 September. But rates for both fixtures had • To find out more about Workspaces, visit this link
yet to emerge as of Singapore’s close. On cargoes, Chinese
state-owned Sinopec remained in the market for a similar
shipment from Singapore to China, loading from 3 October.
Argus TCE rates for southeast Asia Aframax routes also
remained higher about $13,000/d higher compared to east-
bound rates from the Mideast Gulf.
Kozmino dirty tanker rates $/t Southeast Asia dirty tanker rates $/t
Kozmino-Singapore 100kt Kozmino-North China 100kt Southeast Asia-East coast Australia 80kt
Kozmino-Chiba 100kt Indonesia-Japan 80kt
18 45
16 40
35
14
---- ----
30
12
25
10 20
8 15
28 Mar 22 27 May 22 25 Jul 22 20 Sep 22 28 Mar 22 27 May 22 25 Jul 22 20 Sep 22

Crude trade routes Weekly price updates

Published date: Tuesday 20 September 2022 Period: 37
The prices used are mid-week (Tue-Wed-Thu) averages for the previous Key benchmark locations
assessment week, providing a broad snapshot of key seaborne trade routes
for crude around the globe. Freight prices for trade routes
and vessel size
North Sea-NE Asia, 270kt

Baltic-UKC, 100kt
USGC-Europe, 70kt $33.64/mt $4.74/bl
$15.28/mt $2.13/bl
$41.12/mt $5.27/bl Russia
Black Sea-Med, 80kt Kozmino-North China, 100kt South Am
WAF-UKCM, 130kt 4.4 days North Am
$17.17/mt $2.38/bl $15.83/mt $2.14/bl
$21.11/mt $2.86/bl Europe
Middle E
Africa
17.3 days 4.4 days MEG-Singapore, 270kt 3.5 days
$12.42/mt $1.74/bl
50.4 days
13.6 days
15.1 days
MEG-East, 270kt
53.3 days
$18.76/mt $2.56/bl
19.5 days
24.5 days
USGC-China, 270kt
$37.59/mt $4.82/bl WAF-WC India, 260kt
Sunda strait
$22.82/mt $3.09/bl
33.5 days
38.8 days WAF-China, 260kt

$29.25/mt $4.16/bl
Brazil-China, 260kt
$32.82/mt $4.58/bl
Crude trade routes

Crude Origin FOB Price Destination Freight Delivered price
$/bl $/bl $/t $/bl
AGS marker (WTI) US Gulf 89.48 Rotterdam 5.27 41.12 93.44

AGS marker (WTI) US Gulf 89.48 China 4.82 37.59 96.09
Tupi Brazil 89.75 Shandong 4.58 32.82 94.33
Johan Sverdrup Norway 89.29 Shandong 4.74 33.64 94.03
Bonny Light Nigeria 93.13 Rotterdam 2.86 21.11 96.38
Bonny Light Nigeria 93.13 India 3.09 22.82 96.22
Djeno Rep. Congo 88.83 Shandong 4.16 29.25 95.29
Urals, Baltic Primorsk 68.06 Rotterdam 2.13 15.28 70.33
Urals, Black Sea Novorossiysk 66.22 Augusta 2.38 17.17 69.33
Basrah Medium Iraq 92.42 Singapore 1.74 12.42 94.13
ESPO Blend Kozmino 86.92 Shandong 2.14 15.83 93.71
Oman Oman 93.55 Shandong 2.56 18.76 82.81
To learn more about Argus’ daily price assessments, market-moving

news and in-depth analysis, please visit:
Argus Crude: argusmedia.com/en/crude-oil/argus-crude

Clean TANKERS - Europe, Middle East and Africa
European clean tankers buoyed Clean tanker rates - Europe, Middle East, Africa
European clean tanker rates were buoyed on Tuesday as the Size
Route Rate ± $/t
'000t
UK returned from a public holiday after the death of Queen
Middle East
Elizabeth II while the Mideast Gulf stabilised.
Mideast Gulf-UKC* 90 5,500,000 +100,000 61.11
European in particular has seen a more active clean
Red Sea-Med* 90 3,850,000 -50,000 42.78
products market as stocks have shrunk at ARA and traders
Red Sea-UKC* 90 3,950,000 -50,000 43.89
have started to replenish supplies. Warnings of a flat oil Mideast Gulf-Japan 75 270.00 nc 61.80
market in the fourth quarter have added some pressure to Mideast Gulf-South Korea 75 275.00 nc 57.81
trading but the market still made gains. Mideast Gulf-UKC* 65 4,500,000 -150,000 69.23
Mideast Gulf clean tanker rates stable Red Sea-Med* 65 3,300,000 -100,000 50.77
Freight rates for clean tankers from the Mideast Gulf to Ja- Red Sea-UKC* 65 3,400,000 -100,000 52.31
Mideast Gulf-Japan 55 335.00 nc 76.68
pan were stable, as fundamentals were relatively unchanged
Mideast Gulf-Singapore 55 350.00 nc 46.55
on limited chartering activities.
Mideast Gulf-South Korea 55 340.00 nc 71.47
Freight rates for 75,000t Long Range (LR)2 and 55,000t Mideast Gulf-Durban 35 - - 59.46
LR1 shipments from the Mideast Gulf to Japan held at WS270 Mideast Gulf-Durban** 35 - - 64.24
and WS335 respectively. Saudi Arabia's state-controlled Mideast Gulf-east Africa 35 401.00 nc 44.23
Aramco Trading ATC booked the Mare Oriens at WS270 for Mideast Gulf-east Africa** 35 48.53 nc 48.53
a 75,000t shipment from the Mideast Gulf to Japan, loading Mideast Gulf-east coast India 35 415.00 nc -
from 4 October. But it emerged that the booking was failed Mideast Gulf-east coast India* 35 1,825,800 nc 52.17
Mideast Gulf-Japan 35 370.00 nc 83.62
towards the end of Singapore’s market close.
Mideast Gulf-Singapore 35 410.00 nc 56.62
Similarly, freight rates for 35,000t Medium Range (MR)
Mideast Gulf-Walvis Bay 35 - - 79.56
shipments from the Mideast Gulf to Japan were flat at Mideast Gulf-Walvis Bay** 35 - - 87.30
WS370. South Korea's SKE Energy booked the Eternal Sun- Mideast Gulf-west coast India 35 415.00 nc -
shine for a 35,000t shipment from Chennai, east coast India Mideast Gulf-west coast India* 35 1,057,500 nc 30.21
to Japan, loading from 30 September. But the rates for the Northern Europe
fixture had yet to emerge as of Singapore’s market close. UKC-west Africa 60 220.00 +5.00 36.63
On cargoes, trading firms Alvari and Japanese trading firm ARA-Durban 37 - - 75.39
ARA-Walvis Bay 37 - - 62.71
Marubeni, each remained in the market for 35,000t ship-
UKC-east coast Mexico 37 285.00 +15.00 53.10
ments from the Mideast Gulf to Japan, loading from 21 and
UKC-South America 37 315.00 +15.00 55.69
22 September. UKC-US Atlantic coast 37 300.00 +15.00 42.54
WS rates for LR2s have fallen by 25 points since 15 Sep- UKC-west Africa 37 310.00 +15.00 51.62
tember to WS270, compared to a 7.5- and 5-point drop for Baltic-UKC 30 325.00 nc 28.15
LR1s and MRs over the same period. But Argus' time charter Cross UKC 30 265.00 +27.50 14.52
Cross UKC 22 195.00 +20.00 10.69
Black Sea and Mediterranean
Mideast Gulf clean rates $/t Med-Japan* 80 4,550,000 +50,000 56.88
Med-Japan* 60 3,900,000 nc 65.00
Mideast Gulf-Japan 35kt Mideast Gulf-Japan 55kt Med-US Atlantic coast 37 285.00 nc 45.94
Mideast Gulf-Japan 75kt Black Sea-Med 30 525.00 nc 55.55
120 Cross Med 30 230.00 +10.00 15.99
Cross Med gasoline 30 230.00 +10.00 15.99
100 Cross Med jet 30 230.00 +10.00 15.99
Cross Med naphtha 30 230.00 +10.00 15.99
80 Med gasoline premium 30 +0.00 nc -
----
Med jet premium 30 +0.00 nc -
60 Med naphtha premium 30 +0.00 nc -
Med-UKC 30 240.00 +10.00 29.30
40 Med-UKC gasoline 30 240.00 +10.00 27.19
Med-UKC jet 30 240.00 +10.00 27.19
20 Med-UKC naphtha 30 240.00 +10.00 29.23
28 Mar 22 27 May 22 25 Jul 22 20 Sep 22 * $ lumpsum **inclusive of anti-piracy fees

Clean TANKERS - Europe, Middle East and Africa

Med-Japan LR rates $/t
equivalent (TCE) rates for the larger vessel remained higher
compared to the smaller tankers. TCE rates on the Ras
Med-Japan 60kt Med-Japan 80kt
Tanura, Saudi Arabia to Chiba, Japan route for LR2s were 80
$58,904/day on 19 September, compared to LR1s at $56,577/
day and MRs $50,799/day. 70
European clean tankers step higher
European clean tanker rates climbed higher as the UK 60
returned after public holidays and a rush of new cargoes ----
encouraged owners to raise their offers. 50
In the MR market, the cost of freight between the UK
Continent and US Atlantic coast rose by WS15 to WS300, 40
reaching this level for the first time since August. An un-
confirmed charterer put the Energy Afrodite on subjects at 30
this level on the route. The market still remains well below 25 Mar 22 25 May 22 22 Jul 22 20 Sep 22
heights seen earlier this year but rising European cracks
have spurred demand and led to a reduction in stock levels
at ARA.
Black Sea/Mediterranean clean tanker rates $/t
Further, traders suggested last week that seasonal main-
tenance this autumn could cause supply of the road fuel to
Black Sea-Med 30kt Med-Med 30kt
shrink further. And the economics for long-haul exports were 100
also improved for most routes, working to further cut down
Europe's oversupply of gasoline. 80
The time charter rate for a transatlantic MR voyage has
now passed $27,000/d and is rapidly approaching $30,000/d. 60
In the Handysize market, the cost of cross-Mediterranean ----
freight climbed WS10 higher to WS230. European diesel trade 40
has slowed slightly as the IEA forecast a global oil demand
flatline in the fourth quarter, China released diesel export 20
quotas that raised expectations of further quotas, and US
diesel inventories were reported to be growing. There were 0
several fixtures in line with the standing level and outstand- 25 Mar 22 25 May 22 22 Jul 22 20 Sep 22
ing cargoes at the end of the day, which could swell the
market further on Wednesday.
In the north of Europe, the cost of cross-UK Continent
UKC-west Africa clean tanker rates $/t
freight reached WS195. Glencore’s ST Shipping put the
Helene Maersk on subjects at this level, loading from 24-25
UKC-West Africa 37kt UKC-West Africa 60kt
September while trader Trafigura put a ship on subjects 70
slightly lower at WS192.5, loading from 25-26 September.
There were at least two Russian diesel cargoes available as 60
Europe continued to take shipments on long-term supply
50
contracts.
40 ----
Workspaces:
30
Products + Freight - Europe
20
• These Workspaces are templates, curated by the Freight
editorial team 10
• To find out more about Workspaces, visit this link 25 Mar 22 25 May 22 22 Jul 22 20 Sep 22

Clean TANKERS - Americas
US Gulf coast MR rates stabilize Clean tanker rates - Americas

After falling continually over the past week, MR rates in the Size
Route Rate ± $/t
'000t
US Gulf coast stabilized at two-week lows because of an
Worldscale
uptick in refined product export demand in the region.
USGC-Brazil 60 240.00 nc -
Tonnage tighter than yesterday
USGC-north Brazil 60 - - 37.10
At the start of today’s trading session, 18 MR tankers were
USGC-south Brazil 60 - - 47.81
available to load in the US Gulf coast during the next week, USGC-UKC 60 180.00 -5.00 34.90
down from 21 on 19 September, according to a shipbroker. Caribbean-USAC 38 265.00 -10.00 27.35
Total put the Athlos on subjects for a US Gulf coast- USAC-UKC 38 192.50 -5.00 27.89
Caribbean voyage from 23-24 September for $900,000 lump USGC/Caribbean-UKCM 38 195.00 -5.00 33.50
sum, holding the US Gulf coast-Pozos rate steady at that USGC-Argentina/Uruguay 38 - - 68.17
USGC-east coast Canada 38 285.00 -5.00 34.91
level.
USGC-east coast South America 38 285.00 -5.00 -
Valero put the STI Meraux on subjects to carry gasoline
USGC-north Brazil 38 - - 44.06
and diesel on a US Gulf coast-east coast Mexico voyage from USGC-south Brazil 38 - - 58.43
23-25 September for $700,000, holding the rate on the route Lumpsum
steady at that level. USGC-Japan 60 3,600,000 -200,000 60.00
Ipiranga put the Energy Patriot on subjects for a US Gulf EC Canada – USAC 38 800,000 nc 21.05
coast-Brazil voyage from 26-28 September at WS285, lower- USGC-Chile (not south of Coronel) 38 2,225,000 nc 58.55
ing the US Gulf coast-east coast South America rate by WS5 Calbuco diff 38 +100,000 nc +2.63
Caldera diff 38 -100,000 nc -2.63
to that level. The US Gulf coast-Europe rate tracked the
Mejillones/Antofagasta diff 38 -125,000 nc -3.29
drop, falling to WS195.
Quintero diff 38 -50,000 nc -1.32
Trafigura sought an MR tanker for a US Gulf coast-Peru USGC-Dominican Republic 38 850,000 nc 22.37
voyage from 25 September, and Phillips 66 sought an MR USGC-east coast Mexico 38 700,000 nc 18.42
tanker to carry naphtha on a US Gulf coast-Asia voyage from USGC-Ecuador 38 1,675,000 nc 44.08
27-29 September, but neither charterer put an MR tanker on USGC-Japan 38 2,325,000 nc 61.18
subjects. USGC-Las Minas 38 850,000 nc 22.37
PMI put the Stavanger Pearl on subjects to carry naphtha USGC-Lazaro Cardenas 38 1,975,000 nc 51.97
USGC-Peru 38 1,925,000 nc 50.66
on an east coast Mexico-US Gulf coast voyage from 23-25
Callao/Conchan diff 38 -50,000 nc -1.32
September for $700,000.
USGC-Pozos 38 900,000 nc 23.68
The US Gulf coast-Chile rate stayed at $2.225mn amid Barranquilla diff 38 -45,000 nc -1.18
inactivity on the route. Bolivar diff 38 -45,000 nc -1.18
Cartagena diff 38 -30,000 nc -0.79
USGC-Rosarito 38 2,125,000 nc 55.92
USWC-Chile (not south of Coronel) 38 2,600,000 nc 68.42
Calbuco diff 38 +100,000 nc +2.63
Caldera diff 38 -100,000 nc -2.63
Mejillones/Antofagasta diff 38 -125,000 nc -3.29
Quintero diff 38 -50,000 nc -1.32
USWC-Lazaro Cardenas 38 1,175,000 nc 30.92
USWC-Rosarito 38 1,025,000 nc 26.97
USWC-Topolobampo 19 - - 30.13
Chemical tanker rates (weekly) USGC-Guaymas 12 - - 56.97
Route Size '000t $/t ± USWC-Guaymas 12 - - 35.31
USGC-Itaqui, ethanol 10-20 100.00 nc

Clean tanker rates - Jones Act (weekly)
USGC-east coast Mexico, ethanol 5-10 33.00 nc
Route Size '000bl $/bl ±
Houston-Tampa 310-330 2.31 -0.06

Delays
Houston-Tampa 140-260 3.49 -0.06
Location Days ±
Houston-Port Everglades 310-330 2.86 -0.07
Panama Canal Neopanamax locks NB 9 +1 Houston-Port Everglades 140-260 3.86 -0.07
Panama Canal Neopanamax locks SB 10 +1 Houston-Jacksonville 310-330 3.31 -0.08
Panama Canal Panamax locks NB 5 +1 Houston-New York 310-330 4.52 -0.13
Panama Canal Panamax locks SB 7 +1 Houston-New York 140-260 6.58 -0.13

Clean TANKERS - Asia-Pacific
Asia Pacific clean MR rates hold Clean tanker rates - Asia-Pacific

Medium Range (MR) freight rates for clean tankers in Asia Size
Route Rate ± $/t
'000t
Pacific were unchanged on muted chartering activities.
Lump-sum freight rates for 35,000t shipment from South West coast India-south Brazil* 90 6,150,000 +200,000 68.33
Korea to Singapore and to the US west coast (USWC) main- West coast India-UKC* 90 5,400,000 +100,000 60.00
tained at $1.9mn and $3.8mn, respectively. Similarly, MR West coast India-south Brazil* 65 4,950,000 -100,000 76.15
rates from South Korea to Australia remained at WS537.5. West coast India-UKC* 65 4,450,000 -150,000 68.46
Regional cargo availabilities rose to about 14, from about 8 SE Asia-EC Australia 35 497.50 nc 78.56
South Korea-Australia/New Zealand 35 537.50 nc -
yesterday, from the northeast Asia region, mostly to Singa-
South Korea-Chile* 35 4,350,000 nc 124.29
pore and southeast Asia, for the late-September to early-
South Korea-east coast Australia 35 - - 86.54
October loading window, a shipbroker said.
South Korea-New Zealand 35 - - 102.50
Tonnage supplies remained relatively in check, and offer
South Korea-Singapore* 35 1,900,000 nc 54.29
levels remained firm, a few participants said, as some deals
South Korea-USWC* 35 3,800,000 nc 108.57
were reportedly done directly between shipowners and
SE Asia-EC Australia 30 580.50 nc 91.66
charterers, a shipbroker said.
Singapore-Japan 30 435.00 nc 49.76
Regional bunkers influence TCE rates
* $ lumpsum
While freight rates have been flat since the start of the
week, TCE rates to Singapore have moved higher, because of
lower bunker prices in Singapore.
South Korea clean tanker lumpsum rates $
Argus' time charter equivalent (TCE) rates from South
Korea to Singapore rose to $82,571/d on 19 September,
South Korea-USWC 35kt South Korea-Singapore 35kt
from $82,437/d on 16 September. But TCE rates from South 4000000
Korea to the USWC, and to Australia fell to $66,602/d and
$62,983/d on 19 September from $67,348/d, $63,600/d on 16
September, as South Korean bunker rates were higher. 3000000
The price for VLSFO bunkers with 0.5pc sulphur content
in Singapore have fallen to $675.64/t on 19 September from 2000000 ----
$682/t on 16 September. In contrast, the price for VLSFO
bunkers with 0.5pc sulphur content in South Korea have
1000000
risen to $723/t on 19 September from $700/t on 16 Septem-
ber.
0
28 Mar 22 27 May 22 25 Jul 22 20 Sep 22
South Korea-Australia/New Zealand clean tanker rates $/t Southeast Asia-Australia clean tanker rates $/t
South Korea-New Zealand 35kt Southeast Asia-East coast Australia 30kt

South Korea-East coast Australia 35kt Southeast Asia-East coast Australia 35kt
110 100
100 90
90 80
80
70
---- ----
70
60
60
50
50
40 40
30 30
28 Mar 22 27 May 22 25 Jul 22 20 Sep 22 28 Mar 22 27 May 22 25 Jul 22 20 Sep 22

Gasoline trade routes Weekly price updates

for gasoline around the globe. Freight prices for trade routes
and vessel size
USWC-WCM, 38kt UKC-USAC, 37kt FOB NW Europe

$30.92/mt $3.66/bl $38.41/mt $4.55/bl
$839.92/mt $100.82/bl
FOB USGC
$862.54/mt $100.28/bl
USGC-EC Mexico, 38kt
$30.26/mt $3.58/bl
11.5 days
Med-USAC, 37kt
$43.66/mt $5.17/bl
MEG-Singapore, 35kt
13.5 days
$58.23/mt $6.89/bl
USGC-North Brazil, 38kt
5.8 days 1.9 days
$63.77/mt $7.55/bl
UKC-WAF, 37kt 13 days FOB Singapore
14 days
$46.76/mt $5.53/bl $848.13/mt $99.78/bl
12.4 days
11 days
15.2 days
12.9 days
22 days
14.8 days SE Asia-EC Australia, 30kt
$90.90/mt $10.76/bl
UKC-S America, 37kt
$50.54/mt $5.98/bl
MEG-S Africa, 35kt

$65.19/mt $7.71/bl
USGC-Chile, 38kt USGC-Callao, Peru, 38kt
$81.58/mt $9.65/bl $70.61/mt $8.36/bl
Americas Trade Routes Europe Trade Routes Asia Trade Routes

Exports from regional hubs $/mt $/bl Exports from regional hub $/mt $/bl Exports from regional hubs $/mt $/bl
Eurobob Oxy barges 839.92 100.82

Gasoline 87 conv USGC WB Gasoline 92r Singapore 848.13 99.78
862.54 100.28 to USAC 878.33 105.37
ex RVO
to Argentina to Australia 939.03 110.54
(Gasoline Eurobob oxy NWE 912.40 109.52
to East Coast Mexico 892.80 103.86 del Buenos Aires)
to West Africa Gasoline 92r Mideast Gulf 790.50 93.55
to Peru 933.16 108.64 (Gasoline Eurobob delivered 886.68 106.43
west Africa )
to South Africa
Gasoline 95r 10ppm W Med fob 842.75 101.16 891.04 105.45
to Chile 944.12 109.93 (Gasoline 95r c+f Durban )
to USAC 886.41 106.33
to Brazil 926.31 107.83
Gasoline reg CARBOB SF WB
1,237.67 147.32 news and in-depth analysis, please visit:
fob ex RVO
Argus Road Fuels: argusmedia.com/en/oil-products/road-fuels
to West Coast Mexico 1,268.59 150.98

Key jet fuel trade routes Weekly price updates

for jet fuel around the globe. Freight prices for trade routes
and vessel size
USGC-EC Mexico, 38kt Baltic-UKC, 30kt

$30.26/mt $3.84/bl $30.31/mt $3.85/bl
USWC-WCM, 38kt USGC-UKC, 38kt

South Korea-USWC, 35kt
$30.92/mt $3.92/bl $51.40/mt $6.52/bl
$100.95/mt $12.81/bl
4.4 days
18.2 days Argus FOB jet USGC Argus CIF jet NWE
18.2 days
$1029.81/mt $132.01/bl $1044.67/mt $132.61/bl
23.5 days
17.3 days
5.8 days 1.9 days Singapore-Japan, 30kt
MEG-UKC, 90kt $50.20/mt $6.37/bl
$60.74/mt $7.71/bl
10 days
MEG-East Africa, 35kt

$48.46/mt $6.15/bl
12.4 days 9.4 days
18 days
USGC-North Brazil, 38kt
$63.77/mt $8.09/bl Argus FOB jet Singapore 12.9 days
$955.98/mt $121.32/bl
USGC-Pozos, 38kt 14.8 days
$37.28/mt $4.73/bl SE Asia-EC Australia, 30kt
$90.90/mt $11.54/bl
USGC-Chile, 38kt MEG-South Africa, 35kt

$81.58/mt $10.35/bl $65.19/mt $8.27/bl
Americas Trade Routes Asia Trade Routes

Exports from regional hubs $/mt $/bl Exports from regional hubs $/mt $/bl
Argus FOB jet USGC 1,029.81 132.01 Argus FOB jet Singapore 955.98 121.32
to East Coast Mexico 1,060.07 135.85 to Australia 1,046.88 132.86
to Pozos/Caribbean 1,067.09 136.74 to Japan 1,005.76 127.67
to Chile 1,111.39 142.36 Argus FOB jet MEG 905.15 114.87
to Brazil 1,097.98 140.75 to South Africa 970.11 123.14
Argus FOB jet USWC 1,077.45 138.12 to East Africa 953.61 121.02
to West Coast Mexico 1,103.05 141.40 Argus FOB jet South Korea 958.23 121.63
to USWC 1,077.45 138.12
Europe Trade Routes

Imports to regional hub $/mt $/bl
Argus CIF jet NWE 1,044.67 132.61 news and in-depth analysis, please visit:
ex MEG 905.15 114.87
ex USGC 1,029.81 132.01 Argus Oil Products: argusmedia.com/en/oil-products
ex Baltic 1,014.36 128.76

Key distillates trade routes Weekly price updates

for distillates around the globe. Freight prices for trade routes
and vessel size
USWC-WCM, 38kt $30.92/mt $4.14/bl Baltic-UKC, 30kt $30.31/mt $4.06/bl
USGC-UKC, 38kt $51.4/mt $6.89/bl
4.4 days
USGC-ECM, 38kt $30.26/mt $4.06/bl
17.3 days
7.5 days
Bsea-Med, 30kt $61.72/mt $8.27/bl
5.8 days 1.9 days

USGC-N Brazil, 38kt $63.77/mt $8.55/bl
9.4 days 13 days
12.4 days
18 days
22.1 days
MEG-Spore, 55kt $47.55/mt $6.37/bl
MEG-E Africa, 35kt $48.46/mt $6.5/bl
USGC-Chile, 38 kt $81.58/mt $10.94/ USGC-Arg, 38kt $98.67/mt $13.23/
Americas Trade Routes Europe Trade Routes Asia Trade Routes

Exports from regional hubs: $/mt $/bl Imports to regional hubs: $/mt $/bl Exports from regional hub: $/mt $/bl
FOB USGC 939.93 130.93 Argus Diesel French 10 ppm NWE cif Argus Gasoil 10 ppm MEG 917.58 123.00
del EC Mexico 970.19 134.99 ex Baltic 983.75 132.16

to Singapore 965.13 129.37
del Chile 1,021.50 141.87 Argus Gasoil Diesel French 10 ppm W Med cif
del N Brazil 1,038.60 144.16 ex Black Sea 975.42 131.04 to East Africa 966.04 129.50
del Argentina 1,143.34 158.75
del NW Europe 983.75 132.16 To learn more about Argus’ daily price assessments, market-moving
news and in-depth analysis, please visit:
FOB USWC 1,049.52 139.16
Argus Oil Products: argusmedia.com/en/oil-products
del WC Mexico 1,080.44 143.30

Tanker TCE rates
Dirty tanker time charter equivalent rates

Route WS/LS TCE (non-scrubber) USD/day ± TCE (scrubber) USD/day ±
Dirty Tankers - VLCC
EMEA
Bonny-Ningbo 100.00 65,003 -901 79,355 -692
Ras Tanura-LOOP 52.50 28,298 +2,847 41,942 +3,045
Ras Tanura-Ningbo 99.00 64,836 +9,085 78,336 +9,282
Ras Tanura-Rotterdam 55.50 26,351 +2,863 39,366 +3,053
Americas
Corpus Christi-Ningbo 10,750,000 46,258 -832 60,695 -835
Dirty Tankers - Suezmax
EMEA
Basrah-Trieste 65.00 -11,124 -739 -967 -591
Bonny-Rotterdam 135.00 28,223 -743 35,505 -281
Novorossiysk-Ningbo 5,900,000 40,867 -688 51,722 -530
Ras Tanura-Qingdao 140.00 44,348 -968 55,296 -970
Ras Tanura-Singapore 140.00 40,788 -1,030 50,967 -1,033
Americas
Houston-Rotterdam 120.00 37,716 +3,345 42,934 +3,359
Dirty Tankers - Aframax
EMEA
Arzew-Trieste 190.00 33,735 +12,968 - -
Fujairah to Singapore 220.00 40,833 -1,725 - -
Americas
Dos Bocas-Houston 270.00 43,625 +43 - -
Houston-Rotterdam 220.00 34,283 +100 - -
Asia-Pacific
Bukit Tua-Kikuma 230.00 52,637 -851 - -
Kimanis-Geelong 230.00 54,836 -811 - -
Kozmino-Longkou 1,550,000 75,805 nc - -
Clean tanker time charter equivalent rates

Route WS/LS TCE (non-scrubber) USD/day ±
Clean Tankers-Long Range 2
EMEA
Arzew-Oita 4,550,000 22,364 +96
Ras Tanura-Chiba 270.00 58,119 -785
Ras Tanura-Rotterdam 5,500,000 58,821 +1,170
Yanbu-Rotterdam 3,950,000 60,913 -1,914
Asia-Pacific
Sikka-Rotterdam 5,400,000 58,281 +1,217
Clean Tankers-Long Range 1
EMEA
Arzew-Oita 3,900,000 20,821 -427
Ras Tanura-Singapore 350.00 55,678 -633
Ras Tanura-Rotterdam 4,500,000 48,020 -3,098
Yanbu-Rotterdam 3,400,000 51,738 -3,114
Asia-Pacific
Sikka-Rotterdam 4,450,000 48,410 -3,170
Clean Tankers-Medium Range
EMEA
Ras Tanura-Singapore 410.00 40,401 -510
Ras Tanura-Dar es Salaam 440.00 44,547 +183
Rotterdam-New York 300.00 27,159 +1,979
Americas
Houston-Coronel 2,225,000 13,900 +77
Houston-Pozos 900,000 24,627 +51
Asia-Pacific
Daesan-Port Botany 537.50 62,776 -207
Singapore-Port Botany 497.50 57,621 -505
Yeosu-Los Angeles 3,800,000 66,468 -134
Yeosu-Singapore 1,900,000 82,019 -552
Clean Tankers-Handysize
Arzew-Trieste 230.00 12,606 +1,042
Brofjordan-Rotterdam 195.00 3,529 +2,524

Forward freight and demurrage
Forward Freight Agreement assessments Demurrage

Size Route Segment $/day ±
Route Rate ± $/t
'000t
Atlantic basin-Asia VLCC 80,000 nc
USGC-UK continent 70 220.00 nc 41.12 Mideast Gulf-East VLCC 75,000 nc
Sep 22 70 223.50 -2.50 41.77 Mideast Gulf-East Suezmax 55,000 nc
Oct 22 70 244.00 -1.00 45.60 Black Sea-Med Suezmax 55,000 nc
Nov 22 70 248.50 nc 46.44 Black Sea-Med Aframax 47,500 +12,500
Kozmino-north China Aframax 48,000 nc
Atlantic coast Americas MR 42,500 +2,500
Forward curves - Americas-Asia dirty routes $/t Forward curves - EMEA dirty routes $/t
USGC-China 270kt Brazil-China 260kt West Africa-China 260kt

40 West Africa-UKC 130kt
Mideast Gulf-Asia Pacific 270kt
35
35
30
30 ---- 25 ----
20
25
15
20 10
1 Sep 22 1 Apr 23 1 Nov 23 1 Jun 24 1 Sep 22 1 Apr 23 1 Nov 23 1 Jun 24
Forward curves - US-Latam clean routes ’000 LS USD Forward curves - Americas regional dirty routes $/t
USGC-Chile 38kt USGC-Pozos 38kt USGC-UKC 70kt Caribbean-USGC 70kt

USGC-east coast Mexico 38kt East coast Mexico-USGC 70kt
3000 50
2500 40
2000
30
---- ----
1500
20
1000
10
500
0 0
1 Sep 22 1 Apr 23 1 Nov 23 1 Jun 24 1 Sep 22 1 Apr 23 1 Nov 23 1 Jun 24

Crude-specific freight
North America Middle East (continued) Middle East (continued)

Delivery to Size $/bl Delivery to Size $/bl Delivery to Size $/bl
Mars Arab Medium Murban

China 270kt 5.58 Asia-Pacific 270kt 2.97 Asia-Pacific 270kt 2.83
China 130kt 7.27 China 130kt 4.44 China 130kt 4.22
east coast Canada 70kt 4.14 Europe 280kt 2.09 Europe 280kt 1.99
Europe 150kt 3.28 Mediterranean 140kt 1.52 Mediterranean 140kt 1.44
Rotterdam 270kt 2.59 Singapore 270kt 1.97 Singapore 270kt 1.87
Singapore 270kt 5.06 Singapore 130kt 2.73 Singapore 130kt 2.59
South Korea/Japan 270kt 5.58
US Gulf coast 280kt 2.53 US Gulf coast 280kt 2.40
UKC 70kt 5.76
west coast India 270kt 1.10 west coast India 270kt 1.04
UKC futures (M1) 70kt 5.85
west coast India 270kt 5.06
WCS
Basrah Heavy Oman
China 270kt 5.91
Asia-Pacific 270kt 3.12 Asia-Pacific 270kt 2.95
China 130kt 7.70
China 130kt 4.66 China 130kt 4.40
Europe 150kt 3.47
Europe 280kt 2.20 Europe 280kt 2.07
Rotterdam 270kt 2.75
Mediterranean 140kt 1.60 Mediterranean 140kt 1.51
Singapore 270kt 5.36
South Korea/Japan 270kt 5.91 Singapore 270kt 2.07 Singapore 270kt 1.95
UKC 70kt 6.10 Singapore 130kt 2.87 Singapore 130kt 2.70
UKC futures (M1) 70kt 6.20 US Gulf coast 280kt 2.65 US Gulf coast 280kt 2.50
west coast India 270kt 5.36 west coast India 270kt 1.15 west coast India 270kt 1.09
WTI west coast India 130kt 1.41 west coast India 130kt 1.33
China 270kt 5.10 west coast India 80kt 2.29 west coast India 80kt 2.16
China 130kt 6.66 Basrah Medium
east coast Canada 70kt 3.79 Asia-Pacific 270kt 3.03 West Africa
Europe 150kt 3.00 China 130kt 4.52 Delivery to Size $/bl
Rotterdam 270kt 2.37 Europe 280kt 2.13
Singapore 270kt 4.63 Bonny Light
Mediterranean 140kt 1.55
South Korea/Japan 270kt 5.10 China 260kt 4.52
UKC 70kt 5.27 east coast India 260kt 3.94
UKC futures (M1) 70kt 5.36 east coast India 130kt 5.11
US Gulf coast 280kt 2.57
west coast India 270kt 4.63 UKCM 130kt 2.88
Middle East west coast India 130kt 4.95
Delivery to Size $/bl Cabinda
Kuwait
China 260kt 4.58
Arab Heavy Asia-Pacific 270kt 2.97
east coast India 260kt 3.98
Asia-Pacific 270kt 3.03 China 130kt 4.43
China 130kt 4.53 Europe 280kt 2.09
Europe 280kt 2.13 UKCM 130kt 2.91
Mediterranean 140kt 1.55 west coast India 260kt 3.82
Singapore 270kt 2.01 west coast India 130kt 5.01
Singapore 130kt 2.78 Dalia
Singapore 80kt 4.27 China 260kt 4.83
US Gulf coast 280kt 2.57 east coast India 260kt 4.21
west coast India 270kt 1.12 east coast India 130kt 5.46
west coast India 130kt 1.37 UKCM 130kt 3.08
west coast India 80kt 2.22 US Gulf coast 260kt 3.01
Arab Light US Gulf coast 130kt 3.78
Asia-Pacific 270kt 2.93 west coast India 260kt 4.04
China 130kt 4.38 west coast India 130kt 5.30
Europe 280kt 2.06 Djeno
Mediterranean 140kt 1.50 China 260kt 4.75
Singapore 270kt 1.94 east coast India 260kt 4.13
Singapore 130kt 2.69 east coast India 130kt 5.36
USGC coast 280kt 2.49 UKCM 130kt 3.02

Crude-specific freight
West Africa (continued) Latin America (continued) Mediterranean

Delivery to Size $/bl Delivery to Size $/bl Delivery to Size $/bl
Egina Napo Arab Light (Sidi K)

China 260kt 4.73 Houston 50kt 4.89 Mediterranean 80kt 1.82
east coast India 260kt 4.12 Los Angeles 100kt 2.49 UKC 80kt 2.71
east coast India 130kt 5.34 Oriente BTC
UKCM 130kt 3.01 Houston 50kt 4.70 east Asia 130kt 5.39
west coast India 260kt 3.95 Los Angeles 100kt 2.40 Mediterranean 130kt 1.31
west coast India 130kt 5.18 US west coast 50kt 6.79 Mediterranean 80kt 1.77
Escravos Tupi UKC 80kt 2.64
China 260kt 4.53 China 260kt 5.24 Es Sider
east coast India 260kt 3.95 Vasconia east Asia 130kt 5.47
east coast India 130kt 5.12 Panama 130kt 0.88 Mediterranean 80kt 1.79
UKCM 130kt 2.89 US west coast 130kt 2.02 UKC 80kt 2.67
west coast India 130kt 4.97 North Sea & Baltic US Gulf coast 80kt 3.69
Forcados Delivery to Size $/bl Saharan
China 260kt 4.65 east Asia 130kt 5.16
Ekofisk
east coast India 260kt 4.05 Mediterranean 130kt 1.25
east Asia 270kt 4.80
east coast India 130kt 5.25 Mediterranean 80kt 1.70
UKCM 130kt 2.96 UKC 80kt 2.53
UKC 80kt 1.22
US Atlantic coast 80kt 1.99
Forties
Girassol
east Asia 270kt 4.61
China 260kt 4.62 Black Sea
UKC 80kt 1.17 Delivery to Size $/bl
US Atlantic coast 80kt 1.91 Azeri Light (Supsa)
UKCM 130kt 2.94
Johan Sverdrup Mediterranean 80kt 2.56
east Asia 270kt 5.09 UKC 80kt 3.79
Mediterranean 80kt 2.37 CPC
Qua Iboe
UKC 80kt 1.29 east Asia 130kt 5.13
China 260kt 4.46
US Atlantic coast 80kt 2.11 Mediterranean 130kt 2.22
Urals Mediterranean 80kt 2.40
Mediterranean 100kt 3.56 UKC 80kt 3.56
UKCM 130kt 2.84
UKC 100kt 2.13 US Gulf coast 130kt -
US Gulf coast 130kt 3.49 Urals
Asia-Pacific east Asia 130kt 5.65
west coast India 130kt 4.89 Delivery to Size $/bl Mediterranean 140kt 2.38
ESPO
Latin America UKC 80kt 3.91
Chiba 100kt 2.10
US Gulf coast 130kt -
Delivery to Size $/bl north China 100kt 2.10
Castilla
Yeosu 100kt 2.01
China 270kt 5.23
Panama 130kt 0.81
Isthmus
Maya

Bunkers
Conventional
Rotterdam bunker prices (0.5%S, 3.5%S, MGO) $/t Singapore bunker prices (0.5%S, 3.5%S, MGO) $/t
0.1%S MGO dob 0.5%S fuel oil 380cst dob 0.1%S MGO dob 0.5%S fuel oil 380cst dob
3.5%S fuel oil 380cst dob 3.5%S fuel oil 380cst dob
1500 1500
1250 1250
1000 1000
---- ----
750 750
500 500
250 250
21 Jun 22 18 Jul 22 12 Aug 22 9 Sep 22 21 Jun 22 19 Jul 22 16 Aug 22 12 Sep 22
Alternative
Rotterdam - LNG, others as premiums to VLSFO $/t USGC - Methanol, ammonia as premiums to VLSFO $/t
VLSFO dob including CO2 cost Methanol barge dob Ammonia cfr US Gulf spot
LNG NWE bunker dob 2500
RED biomethanol dob
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2000 hhh 1000 hhh
1500 500
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0 -500
Jun 22 Jul 22 Aug 22 Sep 22 Jun 22 Jul 22 Aug 22 Sep 22
Singapore - Methanol premium to VLSFO $/t Middle East - Ammonia premium to VLSFO $/t
Methanol southeast Asia dob Ammonia Middle East fob spot

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Jun 22 Jul 22 Aug 22 Sep 22 Jun 22 Jul 22 Aug 22 Sep 22

News
Suez Canal tanker transit charges rise A bipartisan bill in the works aims to complement the ad-
Egypt’s Suez Canal Authority (SCA) has increased transit ministration's Russian price cap proposal by imposing manda-
charges for crude and product tankers passing through the tory sanctions on foreign financial institutions involved with
Suez Canal by 15pc. any transaction in Russian oil above the price cap, senators
The changes come into effect on 1 January 2023. Pat Toomey (R-Pennsylvania) and Chris Van Hollen (D-Mary-
The SCA said that the most significant factor in deter- land) said at today's Senate Banking Committee hearing on
mining transit tolls is the average freight rates for vessels Russian sanctions. The Senate committee has jurisdiction
transiting the Canal and noted “ever-increasing daily charter over the US sanctions regime.
rates for most types of vessels.” Time-charter equivalent The legislative offer does not appear to have been ac-
rates for some crude tanker routes are at their highest for cepted enthusiastically. "The US administration and our G7
over two years. partners have a good deal of leverage and (legal) authority
Rising energy and other prices have also had an impact right now in order to pursue the policy," treasury assistant
on the tolls. The SCA said “the increase [in transit charges] secretary Elizabeth Rosenberg told senators.
is inevitable and a necessity in light of the current global in- The administration’s plan offers importers from non-G7
flation rates that reached more than 8pc,” leading to higher countries the chance to continue using insurance and finance
operational costs including providing navigational services services that facilitate trade and transportation of Russian
in the Canal. The increase in crude oil prices over $90/bl oil, as long as market participants agree to be bound by the
has also led to a rise in the average price of bunker fuels price cap. The EU and the UK together account for 90pc of
and consequently an increase in the savings ships make by maritime protection and indemnity services globally.
transiting the Suez Canal compared with other routes, the The EU has already banned provision of services enabling
SCA said. transportation of Russian oil to third countries, and the
Transit dues increased for all types of vessels, except dry European Commission will need to amend the ban to exempt
bulk vessels and cruise ships, for which dues will increase by transactions involving sales at or below the cap.
10pc. Treasury's guidance in advance of a 5 December imple-
By Matthew Mitchell mentation deadline has outlined a relatively light-handed
approach to enforcing the price cap.
Most Puerto Rico ports reopen after hurricane Providers of insurance and financial services that facili-
Six of the seven Puerto Rico maritime ports that remained tate trade and transportation of Russian oil will be shielded
closed or restricted this morning reopened fully this af- from sanctions risks as long as they attest that their clients
ternoon after closing on 16 September ahead of Hurricane — refiners, trading companies and brokers — are selling oil
Fiona, according to the US Coast Guard. at or below the cap. Clients with direct knowledge of the
The ports of Guanica, Guayama/Las Mareas, Guayanilla, price could be liable for sanctions violations if they are later
Mayaguez, Salinas/Aguirre and Tallaboa joined the 16 other discovered to have falsified the sales price.
Puerto Rico ports that reopened to all vessel traffic yester- The enforcement approach to the price cap plan is a ma-
day. San Juan remained restricted to daylight transit. jor departure from the recent policy of US sanctions against
So far this year, Puerto Rico has averaged 2,740 b/d Iran and Venezuela. In the case of the two Opec producers,
of LNG exports and 1,650 b/d of LPG exports, along with the US has sought to impose curbs on their export volumes.
38,300 b/d of gasoline imports, 25,700 b/d of LNG imports But the goal of the price cap plan is as much, if not
and 21,700 b/d of fuel oil imports, according to Vortexa more, about enabling the continued sales of Russian oil as
data. about cutting Russian oil sales revenue.
Hurricane Fiona left about a third of Puerto Rico without Senators at the hearing pressed Rosenberg to explain
power. Power grid manager Luma Energy said the damage to how the US will force major buyers of Russian oil to agree to
networks was extensive and would take several days to be accept the price cap proposal.
repaired. But the Treasury says it does not even matter if large
By Michael Connolly buyers of Russian oil decline to formally accept it.
"By design of this policy, it's not essential for such coun-
US senators aim to codify Russian oil price caps tries (as India and China), such major importers of Russian
A plan to impose price caps on Russian oil exports to coun- oil to formally join this group," Rosenberg said. "They can
tries beyond North America and Europe enjoys so much nevertheless use the existence of the price cap to lever-
bipartisan support in the US Senate that lawmakers are of- age lower prices from Russia." India and China have already
fering to write the proposal into law. imported Russian cargoes at discounted prices since Febru-

News
ary, after buyers and trading companies in Europe began to with less than 8,000 b/d. Meanwhile exports of Bouri in the
exit the trade. same period were 17,000 b/d, with most supplies, around
The plan is slated to go into effect when the EU bans 15,000 b/d, heading to Italy.
seaborne imports of Russian crude on 5 December and ship- By Elena Mataro
ments of Russian oil products on 5 February. Initial guidance
suggests that prices will be capped at fixed levels, with Norwegian product deliveries up in August
separate caps for crude, heavy and light refined products. Norwegian oil products demand rose in August compared
The cost of Russian crude production is a key determi- with a year earlier, driven by an increase in demand for
nant for the crude price cap. The Russian federal budget marine and jet fuels.
uses $44.20/bl as a reference for the metric, but Rosenberg Total oil product deliveries in Norway amounted to
said that G7 calculations would take into account other fac- 148,550 b/d in August this year, marking a rise of 6pc on the
tors, such as geology of the field, production technology and year and 15pc against August 2019, according to the latest
the cost over time of amortization. data from Statistic Norway. Deliveries were also up margin-
The price cap plan is not forcing remaining buyers of Rus- ally on the month from July.
sian oil to use EU and UK maritime protection and indemnity Deliveries of jet fuel in Norway totalled almost 15,000
service providers. But the Treasury says that making alterna- b/d in August, marking an increase of almost 90pc from year-
tive financial and insurance arrangements would impose ago levels and almost 115pc from pre-pandemic August 2019
costs on Russian sellers that are as large as the price cap. figures.
While Russian companies have offered insurance for oil But jet fuel demand slipped by over 30pc in August from
trade, they had not been able to cover the entire volume July, to its lowest point since May, which tallies with a fall
before, "which is one of the reasons why insurance provided in jet fuel import figures into Norway during the month, and
by European countries has been important and will continue a decline in passenger numbers with flagship carrier Norwe-
to be important," Rosenberg said. "Furthermore, those pur- gian air.
chasers of Russian oil know that to use VLCC tankers, they Deliveries of marine gasoil and diesel accounted for the
are essentially required to use European insurance." remainder of the annual gains, with levels rising by 18pc on
By Haik Gugarats the year and 80pc compared with 2019 levels.
Deliveries of road fuels fell in August on the year, with
Libyan sour crude sails to Poland gasoline lower by 9pc on the year and by 12pc on 2019 lev-
A rare cargo of Libya’s sour crude grade Al Jurf is set to ar- els, and dutiable diesel deliveries lower by a more marginal
rive at Gdansk, Poland, for the first time since 2012, when 1pc on the year and just 0.4pc on 2019 levels.
Argus records began, as European refiners step up efforts to By Elliot Radley
diversify from medium sour Russian crude.
The Aframax tanker Eikeviken, chartered by TotalEner- Arabian Drilling to seek IPO on Saudi exchange
gies, loaded around 600,000bl from the Farwah offshore Arabian Drilling, one of the largest oil and gas drilling con-
terminal and is heading to Gdansk in Poland, where it is tractors in Saudi Arabia, said it plans to float a 30pc stake in
scheduled to discharge on 26 September, Vortexa tracking the company in an initial public offering (IPO) on the Saudi
shows. Crude supplies arriving at the Polish port can reach stock exchange.
TotalEnergies' 236,000 b/d Leuna plant in eastern Germany The firm — a joint venture between US oil service firm
via pipeline. Schlumberger and Saudi industrialisation and energy service
The rare journey comes after three other tankers re- company Taqa — intends to list 26.7mn shares in total, 9mn
cently arrived from Libya to Germany and Poland, with light through a primary offering and 17.7mn through a secondary
sweet Es Sider, Libya's main export crude. Some Mediter- offering. The offer price will be decided after a book-build-
ranean refiners use Es Sider as a substitute for rival Russian ing period between 28 September and 5 October.
Urals, but more northwest European refiners may also be The company had a fleet of 45 rigs at the end of 2021 —
doing so in preparation for the EU embargo on Russian crude 38 onshore rigs and seven offshore. It reported revenue of
starting 5 December. 2.2bn Saudi riyals ($586mn) and profit of SR911mn in its 2021
Al Jurf and the other Libyan sour grade, Bouri, are financial year. Chief executive Ghassan Mirdad said he ex-
regionally available crudes, but comprise relatively small pects Arabian Drilling’s spending to reach SR17.6bn in 2025.
streams. Total exports of Al Jurf were just below 20,000 b/d The company operates in Saudi Arabia and the offshore
in January-August, with Spain the main outlet for the grade Neutral Zone which Riyadh shares with Kuwait. It primarily

News
serves state-controlled Saudi Aramco, Al-Khafji Joint Opera- This means Lebanon will probably need to swap the
tions — operator of the offshore Khafji feld in the Neutral Iranian fuel oil for product with specifications better suited
Zone — as well as Shlumberger's Middle Eastern subsidiaries to its needs. It has engaged in similar schemes before, most
and the Saudi branch of US firm Baker Hughes. The firm has recently last year when it struck a deal with Iraq to broker
linked its spending outlook to main client Aramco's plan to 1mn t/yr of Iraqi fuel oil in exchange for products it re-
raise Saudi Arabia's crude output capacity to 13mn b/d by quired.
2027. Lebanon also asked Iran for gasoil but was turned down
Arabian Drilling said it intends to use the proceeds from as Tehran said it does not have excess product to export, the
the IPO to supplement cash flow and bank financing and source said.
scale up its onshore and offshore rig fleet in Saudi Arabia. Many of Lebanon's power plants were originally config-
It also plans to direct funding towards repaying debt and ured to run on gas but have been running on heavy fuel oil
expanding its operations in the Gulf Co-operation Council and gasoil for more than 20 years. Chronic fuel shortages
(GCC) region. since the end of the Lebanese civil war in 1990 have resulted
By Ruxandra Iordache in daily power cuts for much of the last three decades.
Lebanon’s current financial crisis, which began in the
Forties crude lighter and sweeter last week second half of 2019 and has pushed around three-quarters of
North Sea Forties blend crude was lighter and sweeter in the population below the poverty line, has further crippled
the week to 18 September, when the contribution from the its power sector as a shortage of foreign currency made it
Buzzard field declined for the second straight week to 23pc increasingly difficult for Lebanon to secure fuel and other
from 29pc in a week prior, according to Forties Pipeline essential goods.
System operator Ineos. Lebanon has previously received several shipments of
A 23pc Buzzard contribution results in a Forties blend gasoil from Iran via Syria, but those were brokered by Leba-
with a gravity of around 40.6°API and sulphur content of nese Islamist group Hezbollah, which has strong ties with
around 0.59pc. Tehran. This would be the first supply of Iranian product to
Buzzard's contribution affects Forties quality because the Lebanon brokered by the Lebanese state.
field's crude is heavier and sourer than the other component By Bachar Halabi and Nader Itayim
fields. Buzzard's share of Forties averaged 34.1pc in August,
above Ineos' forecast of 29.9pc for the month. The field’s WTI futures fall on eve of interest rate decision
contribution has been declining since the start of September WTI crude futures were lower today as the market braces
to average 28pc so far, broadly in line with Ineos’ forecast for a potentially large interest rate hike from the US Federal
for the month. Reserve this week.
By Lina Bulyk October Nymex WTI fell by $1.28/bl to $84.35/bl while
November Ice Brent fell by $1.38/bl to $90.62/bl. The
Iran agrees to supply fuel oil to Lebanon November Brent-November WTI spread widened by 4¢/bl to
Iran has agreed to supply Lebanon with 600,000t (3.87mn bl) $6.68/bl.
of fuel oil over a five-month period to help ease a worsening The Argus Crude Market Ticker (ACMT) showed the
fuel shortage that has triggered rolling power cuts across the prompt WTI Houston bid-offer spread at $2.60-$2.80/bl over
country. the Cushing benchmark following Nymex settlement, down
The deal was struck today following a series of meet- from yesterday's $3.14/bl premium.
ings between delegations from the countries' respective The US Federal Reserve was meeting today and tomor-
energy ministries, according to a Lebanon-based source with row to discuss and reveal an update to interest rates as it
knowledge of the talks. The Iranian fuel oil is being supplied continues to chase down runaway inflation. Rising rates
to Lebanon as a "grant", the source said. The first supplies could cool the economy and in-turn weigh on crude demand.
could arrive in a few weeks once the two ministries for- “This is a fight we cannot, and will not, walk away from,”
malise the arrangement. said US Federal Reserve governor Christopher Waller in a
The fuel oil Iran has agreed to supply will have a sulphur speech earlier this month, adding that a robust jobs market
content of above 1pc, the source said, which is not suited is giving the fed the ability to be aggressive in combating
to Lebanese power stations. According to tenders issued by inflation.
Lebanon's energy ministry, imported fuel oil cargoes should The fed is expected by investors to hike its benchmark
have a maximum sulphur content of 1pc. interest rate on Wednesday by 75 basis points, its third such

News
increase in a row as it doubles down on slowing inflation that said, warning that Europe’s shift to “aggressively” promote
is currently near four-decade highs. renewable alternatives risks substituting one type of energy
Policymakers of the Bank of England and Bank of Japan dependency with another.
are also all holding monetary policy meetings this week. The Saudi Arabia, which chairs the coalition of Opec+ produc-
Bank of Canada raised its interest rates again earlier this ers, has led calls for additional investment to increase global
month. crude capacity, championing the ongoing use of hydrocar-
On the supply side, US president Joe Biden's administra- bons as a back-up resource to renewables during the energy
tion plans to continue an emergency drawdown of crude transition.
from the US Strategic Petroleum Reserve (SPR) into Novem- Oil and gas investments more than halved from the
ber, with the sale of an additional 10mn bl of sweet crude. $700bn of 2014 to the $300bn of 2021, Nasser said.
Opec heavyweight the UAE is considering accelerating a “The increases this year are too little, too late, too short
plan to raise its crude oil production capacity to 5mn b/d to term,” he noted, adding global oil fields are declining by an
help meet the world's growing need for energy, according to average 6pc each year.
sources familiar with the matter. Saudi Arabia and the UAE are the two Opec+ producers
Oman's state-controlled PDO is targeting crude output of with the largest remaining reserves of spare capacity, which
652,000 b/d this year, the highest in close to two decades, they are both on track to increase. Saudi Arabia targets
as it takes advantage of the sultanate's higher Opec+ produc- 13mn b/d by 2027, excluding advances at the offshore
tion quotas. Neutral Zone it shares with neighbouring Kuwait. Abu Dhabi
Nymex RBOB today fell by 1.63¢/USG to $2.4478/USG was looking to lift crude capacity to 5mn b/d by 2030, but is
and Nymex ultra-low sulphur diesel rose by 6.14¢/USG to mulling steps to expedite its efforts.
$3.3722/USG. By Ruxandra Iordache
By Brett Holmes
UAE to expedite plan to boost crude capacity
Energy price caps not the answer: Aramco CEO Opec heavyweight the UAE is considering accelerating a
Consumer price caps will only offer a short-term solution to plan to raise its crude oil production capacity to 5mn b/d to
the world energy crisis, which is rooted in underinvestment help meet the world’s growing need for energy, according to
in hydrocarbons and a lack of supply alternatives, Saudi sources familiar with the matter.
state-controlled Aramco chief executive Amin Nasser said. Abu Dhabi’s state-owned Adnoc announced in late 2018
“Freezing or capping energy bills might help consumers a programme to hike its crude capacity to 5mn b/d by 2030,
in the short term, but it does not address the real causes from below 3.5mn b/d at the time, a move highlighting its
and is not the long-term solution,” he told the Schlumberger ambitions to capture long-term market share and become a
Digital Forum in Switzerland. “And taxing companies when bigger player in the region.
you want them to increase production is clearly not helpful.” But amid growing fears over limited global spare capac-
Since the start of the year, western countries have put ity, sources said discussions have been ongoing in the upper
in place price caps and subsidy programmes to ease the toll echelons of Adnoc about significantly expediting those plans
of surging energy prices on consumers, as global oil prices to deliver the 5mn b/d capacity.
linger above $90/bl. The IEA estimated the value of oil and At present, Adnoc is still “examining” and “looking at op-
gas subsidies in Saudi Arabia at $22.9bn and electricity subsi- tions” to bring forward the completion of this expansion to
dies at $5.8bn for 2020. The energy watchdog and the OECD as early as 2025, one source said. But the plan is due to be
estimated that fossil fuel subsidies almost doubled on the put before the Adnoc board when it next meets in November
year in 51 countries last year, including Saudi Arabia, and for approval. The board will “in all probability” give the go
that government support is likely to increase further in 2022 ahead, the source said.
as a result of higher energy prices and demand. Should it be approved, this will represent a near 20pc
Nasser assesses that Russia’s invasion of Ukraine has hike in crude production capacity from current levels of
exacerbated the energy crisis but is not the “root of the “around 4.2mn-4.3mn b/d” in just three years, building fur-
cause,” which he sees driven by scant investment in oil and ther on an impressive track record of capacity growth over
gas projects, and a lack of available renewable alternatives. the past decade. UAE crude production capacity was below
“As for conventional energy buyers, who expect produc- 3mn b/d just 10 years ago.
ers to make huge investments just to satisfy their short- Adnoc’s original roadmap to 5mn b/d was to be driven
term needs, they should lose those expectations fast,” he by additions through the optimisation of existing assets, and

News
new capacity at giant fields like the offshore Upper Zakum expected "in the first third of November", Mol said.
field where capacity is scheduled to increase by 100,000 b/d The maintenance was originally scheduled to begin in
to 1mn b/d by 2024. April, but Mol delayed it because of "the situation in the
Sources have said capacity at Upper Zakum can be road fuel market". The company has had to deal with in-
increased further beyond 1mn b/d at a later stage, but it creased fuel demand on the back of the government's deci-
remains unclear by how much. sion to cap pump prices to curb inflation, although Budapest
Adnoc has also been aiming to develop new fields to help has released some of its strategic diesel reserves to ensure
meet its 5mn b/d target. It has announced discoveries with sufficient supply during Szazhalombatta's partial shutdown in
a combined 1.65bn bl of oil and gas finds totalling 2.5 tril- August-September.
lion-3.5 trillion ft³ in the past 12 months alone. The Hungarian government announced on 17 September
Capacity crunch that it will extend the fuel price cap until the end of this
The UAE’s plans to accelerate its capacity expansion will year. "It may not go completely smoothly, but these mea-
provide some welcome relief for oil markets at a time when sures are sustainable for the next three months," the prime
concerns over dwindling global spare capacity have been minister's chief of staff Gergely Gulyas said. "There have
dominating headlines. been minor interruptions in supply so far, but in general
Opec kingpin Saudi Arabia and other Opec members everyone was able to refuel," he said.
have for some time been warning about diminishing global By Bela Fincziczki
spare capacity as investors have turned away from long-
term investments in fossil fuels to focus on energy transition India's August diesel exports fall, jet fuel up
projects. In May, chief executive of state-controlled Saudi India's diesel exports in August fell from a year earlier to
Aramco Amin Nasser said at “2pc or lower, in a market of 568,000 b/d in line with higher domestic demand but jet
100mn b/d,” spare capacity is “very low”. fuel exports surged by 130pc, helping push up overall oil
The UAE is one of a small handful of countries globally product shipments.
with some spare capacity, along with Saudi Arabia and, to But diesel continued to make up the largest share of
a lesser extent, Kuwait. And like the UAE, Saudi Arabia and oil product exports. Exports of 568,000 b/d in August were
Kuwait are both in the middle of their own capacity expan- down by about 11pc from 626,000 b/d a year earlier but
sion plans. up by about 8pc from 526,000 b/d in July, provisional oil
Saudi Arabia is pursuing a plan to boost the kingdom’s ministry data show. The month-on-month rise in exports was
capacity, including its share of the Neutral Zone that it in line with a fall in domestic diesel consumption of 5pc on
shares 50:50 with Kuwait, to above 13mn b/d by 2027 from the month in August to 1.525mn b/d. Gasoline exports were
around 12mn b/d today, while Kuwait is aiming to boost its at around 276,000 b/d, rising by 12pc from the year-earlier
overall capacity, including its share of the Neutral Zone, to level of 246,000 b/d but falling by 9.1pc from 302,000 b/d in
3.5mn b/d by 2030 and 4mn b/d by 2035, up from close to July.
3mn b/d today. Jet fuel exports of 189,000 b/d in August surged by 130pc
By Nader Itayim from a year earlier and were higher by 28pc from July de-
spite a 2.6pc month-on-month and 57pc year-on-year rise in
Hungarian refinery set for new maintenance domestic demand to 152,000 b/d. Naphtha exports were at
Hungarian integrated oil firm Mol said it has completed a around 121,000 b/d in August, up by 18pc from July and by
first phase of planned maintenance at its 161,000 b/d Sza- around 34pc from a year earlier.
zhalombatta refinery and aims to start a second phase on 9 These helped push up total oil product exports to 5.2mn
October. t in August, up by 9pc from 4.8mn t a year earlier and by
Mol finished the 8bn forint ($20mn) first phase of work 11.7pc from 4.68mn t in July. The rise was despite a 16.3pc
on 18 September, as planned. The refinery is now produc- year-on-year increase in total fuel consumption to 17.81mn t
ing road fuels at full capacity, the firm said on Sunday. The during the month and higher duties on exports of diesel and
first phase began on 31 July and affected 11 units, or around jet fuel from 19 August.
40pc of installations at Szazhalombatta. The federal government raised the tax on diesel exports
The company first announced the second phase at the by 50pc from 3 August to 6 rupees/litre ($12/bl), while lifting
beginning of August but did not give a specific start date the tax on jet fuel exports from zero to Rs2/l with effect
at the time. No details on which units will be affected in from 19 August. Export taxes on diesel and jet fuel were
the second phase have been disclosed, but completion is further raised from 1 September but cut from 17 September.

News
Total oil product imports fell to 3.6mn t in August from 2021. The firm's condensate output in 2021 was 3pc lower
around 3.7mn t in July, but rose by around 13.7pc from than 2020, driven by a drop in gas production. PDO produced
3.2mn t a year earlier. LPG imports accounted for around 57mn m³/d of gas last year, down by around 10mn m³/d on
42pc of the total product imports in August, up from 38.6pc 2020 and 14mn m³/d below its 2021 target.
in July but down from 53.3pc a year earlier. PDO cited "lower customer demand" as the reason for
India’s total output of oil products was 20.9mn t in the drop in gas output last year. But Oman's limited LNG
August, rising by 7pc from 19.6mn t a year earlier but down export capacity could also have played a part. Oman's
by around 5pc from 22mn t in July. The rise in oil product 10.4mn t/yr Qalhat LNG export terminal is still undergoing
output on the year was in line with a 5.9pc increase in crude de-bottlenecking work, which has likely added 1.5mn t/yr
processing rates to 4.62mn b/d in August. of export capacity this year already. PDO has not provided a
India’s crude imports were at around 4.15mn b/d in Au- gas production target for 2022.
gust, down by 14pc from 4.81mn b/d in July but up by 0.9pc PDO is Oman's biggest hydrocarbons producer. It account-
from 4.11mn b/d in August 2021. Imports during April-August ed for 76pc of the sultanate's 971,000 b/d of liquids output
were at 4.7mn b/d, up by around 17pc from 4.01mn b/d a in 2021 and 51pc of its 112mn m³/d of non-associated gas
year earlier. production. Oman's state-owned Energy Development Oman
Middle East crude made up 59.7pc of the April-August (EDO) owns 60pc of PDO, while Shell holds 34pc, TotalEner-
import total, followed by Eurasia with 20.4pc. India has been gies 4pc and Portugal's Partex 2pc.
stepping up purchases of lower-priced crude from Russia de- By Ieva Paldaviciute
spite pressure from the US not to increase its Russian intake
following the conflict in Ukraine. TotalEnergies supplies B24 to CMA CGM ship
India imports nearly 84pc of its crude needs and is France-based trader TotalEnergies has supplied container
struggling to meet its upstream production goals, produc- ship CMA CGM Monitor, owned by French based container
ing 596,000 b/d against a target of 675,000 b/d for the fiscal ship firm CMA CGM, with a B24 marine biodiesel blend in
year to 31 March 2022, according to oil ministry figures. Singapore.
It has lowered its crude production target for 2022-23 to The B24 delivered on 29 July was a blend of 24pc used
619,000 b/d. cooking oil methyl ester (Ucome) and 76pc very low-sulphur
Crude imports usually account for over 80pc of India’s fuel oil (VLSFO), TotalEnergies said.
total crude oil and petroleum product imports. This is TotalEnergies’ fourth biodiesel for bunkering de-
By Pranav Joshi livery in Singapore this year. In July, it also delivered a B20
blend to container ship Cosco Houston, operated by Cosco.
PDO expects 2022 output to hit 19-year high TotalEnergies says the fuel reduced lifecycle greenhouse gas
Oman's state-controlled PDO is targeting crude output of (GHG) emissions by 17pc compared to conventional marine
652,000 b/d this year, the highest in close to two decades, fuels.
as it takes advantage of the sultanate's higher Opec+ pro- In June, it supplied B20 to truck carrier vessel Heroic Ace
duction quotas. But much of the growth in crude output operated by Mitsui OSK. TotalEnergies in March delivered B10
looks likely be offset by a second consecutive yearly fall in to bulk carrier Friendship, chartered by NYK Line. TotalE-
condensate production. nergies noted that B10 provides about 10pc reduction in
At 652,000 b/d, PDO's crude output would be up by lifecycle GHG emissions.
17,000 on 2021 and the highest since 2003. The company In February, CMA CGM announced the launch of a six-
produced 635,000 b/d last year, up by around 6pc from 2020 month, global, biofuels for bunkering trial involving 32 of its
but 5,000 b/d below its target for the year. container ships.
The Yibal Khuff oil and gas project — one of Oman's most Ucome fob China was assessed at $1,899/t VLSFO-equiva-
technically complex upstream developments — will help to lent average on 1-20 September, Argus data showed. A blend
support this year's production growth. It started up in the of 24pc Ucome fob China and 76pc delivered Zhoushan,
third quarter of 2021, adding 10,000 b/d of oil and 6mn m³/d China, VLSFO amounts to about $990/t, or about 41pc higher
of gas. PDO expects oil production from Yibal Khuff to ramp than outright VLSFO.
up to 20,000 b/d this year and gas output to stabilise at 5mn By Stefka Wechsler
m³/d.
PDO forecasts a 12pc year-on-year decline in condensate
production in 2022 — to 91,000 b/d from 103,000 b/d in

News
MR congestion builds on Mexico’s east coast

A glut of medium range (MR) clean tankers has built on the
east coast of Mexico after the chartering arm of state-owned
Pemex was unusually busy importing refined products into
the region over the past few weeks.
At 2:30pm ET, 11 MR tankers (10 laden) were waiting
outside of the port of Pajaritos, and five MR tankers (three ARGUS
laden) were in the port, according to Vortexa data. Addition-
ally, 13 MR tankers (seven laden) were waiting outside of HYDROGEN
Tuxpan, and two MR tankers (one laden) were in the port.
& FUTURE
FUELS SERVICE
Congestion often builds at Mexican ports after periods of
increased import activity because of limited storage capac-
ity in the port’s terminals. During quieter periods, MR tanker
queues outside of ports are typically fewer at a half-dozen Transition to Net Zero requires you to remain
ships. fully informed about the policy, regulatory and
The congestion has so far not been enough to reverse the technological developments taking place across
current MR tanker rate slide in the US Gulf coast. But if sus- the globe. Subscribe to our service today to
tained, it would provide upward pressure to rates by limiting better navigate your energy transition journey.
tonnage replenishment in the region.
The US Gulf coast-east coast Mexico MR tanker freight Sign up now to get complementary access
to Argus Hydrogen and Future Fuels Service
rate was yesterday assessed at $700,000 lump sum, down
from $1.275mn on 14 September.
By Michael Connolly
Argus Tanker Freight is published by Argus Media group
EDITORIAL CONTACTS
Americas Europe Asia-Pacific Publisher: Adrian Binks Global Head of Freight:
Chief operating officer: Matthew Burkley Alex Younevitch
Editor: Nicholas Watt Editor: Sheel Bhattacharjee Editor: Andrew Khaw
Tel: +1 646 376 6132 Tel: +44 20 7780 4290 Tel:+65 6496 9978 [email protected]
Global compliance officer: Jeffrey Amos
[email protected] [email protected] [email protected]
Chief commercial officer: Jo Loudiadis Customer support and sales:
Clean Tankaers: Michael Connolly Clean Tankers: John Ollett Clean Tankers: Sean Zhuang President, Oil: Euan Craik [email protected]
[email protected] [email protected] [email protected] [email protected]
ICE: micconnolly ICE: arguscleanfreightldn ICE: fargussg1 Global SVP editorial: Neil Fleming
Editor in chief: Jim Washer
Dirty Tankers: Adison Eyring Dirty Tankers: Matthew Mitchell Dirty Tankers: Hamren Hamid London: Tel: +44 20 7780 4200
Editorial manager: Nicholas Watt Houston: Tel: +1 713 968 0000
[email protected] [email protected] [email protected]
ICE: aeyring ICE: argusdirtyfreightldn ICE: argusdirtyfreightsg Operations lead: John Ollett Singapore: Tel: +65 6496 9966
Copyright notice
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exchanges) and may only be used under licence from Argus. Without limiting the foregoing, by accessing this publication you agree that you will not copy or reproduce or use any part of its contents (including, but not
limited to, single prices or any other individual items of data) in any form or for any purpose whatsoever except under valid licence from Argus. Further, your access to and use of data from exchanges may be subject
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Issue 22-5 | Tuesday 20 September 2022

Contents Key prICES

Dirty tankers 2-6 Tanker rates

DIRTY TANKERS - Europe, Middle East and Africa

Copyright © 2022 Argus Media group Page 2 of 25

Issue Ref: 130219

DIRTY TANKERS - Europe, Middle East and Africa

Copyright © 2022 Argus Media group Page 3 of 25

DIRTY TANKERS - Americas

VLCC gains extend further Dirty tanker rates - Americas

USGC-China 130kt USGC-China 270kt

Copyright © 2022 Argus Media group Page 4 of 25

DIRTY TANKERS - Asia-Pacific

Southeast Asia Aframax rates hold Dirty tanker rates - Asia-Pacific

Copyright © 2022 Argus Media group Page 5 of 25

Crude trade routes Weekly price updates

North Sea-NE Asia, 270kt

38.8 days WAF-China, 260kt

Crude trade routes

AGS marker (WTI) US Gulf 89.48 Rotterdam 5.27 41.12 93.44

To learn more about Argus’ daily price assessments, market-moving

Copyright © 2022 Argus Media group Page 6 of 25

Clean TANKERS - Europe, Middle East and Africa

Copyright © 2022 Argus Media group Page 7 of 25

Clean TANKERS - Europe, Middle East and Africa

Copyright © 2022 Argus Media group Page 8 of 25

Clean TANKERS - Americas

US Gulf coast MR rates stabilize Clean tanker rates - Americas

USGC-Itaqui, ethanol 10-20 100.00 nc

Houston-Tampa 310-330 2.31 -0.06

Copyright © 2022 Argus Media group Page 9 of 25

Clean TANKERS - Asia-Pacific

Asia Pacific clean MR rates hold Clean tanker rates - Asia-Pacific

South Korea-New Zealand 35kt Southeast Asia-East coast Australia 30kt

Copyright © 2022 Argus Media group Page 10 of 25

Gasoline trade routes Weekly price updates

USWC-WCM, 38kt UKC-USAC, 37kt FOB NW Europe

MEG-S Africa, 35kt

Americas Trade Routes Europe Trade Routes Asia Trade Routes

Eurobob Oxy barges 839.92 100.82

Copyright © 2022 Argus Media group Page 11 of 25

Key jet fuel trade routes Weekly price updates

USGC-EC Mexico, 38kt Baltic-UKC, 30kt

USWC-WCM, 38kt USGC-UKC, 38kt

MEG-East Africa, 35kt

USGC-Chile, 38kt MEG-South Africa, 35kt

Americas Trade Routes Asia Trade Routes

Europe Trade Routes

Copyright © 2022 Argus Media group Page 12 of 25

Key distillates trade routes Weekly price updates

USWC-WCM, 38kt $30.92/mt $4.14/bl Baltic-UKC, 30kt $30.31/mt $4.06/bl

USGC-UKC, 38kt $51.4/mt $6.89/bl

5.8 days 1.9 days

9.4 days 13 days

MEG-E Africa, 35kt $48.46/mt $6.5/bl

USGC-Chile, 38 kt $81.58/mt $10.94/ USGC-Arg, 38kt $98.67/mt $13.23/

Americas Trade Routes Europe Trade Routes Asia Trade Routes

Dirty tankers 2-6 Tanker rates

Argus Tanker Freight is published by Argus Media group