Latest news with #Vortexa
Mint
3 days ago
- Business
- Mint
Sliding oil prices have reopened the door to Russian crude
Earlier this year, the Western energy industry began to calculate how it might tiptoe back into Russia if there is peace in Ukraine. One group isn't hanging around. A cadre of Greek shipping magnates has sent a stream of ships to Russian ports in recent months, stepping back into the fold as the go-to distributors of Moscow's crude to the world. The jump back into the lucrative trade follows a fall in oil prices this year. Handling Russian oil is legal under Western sanctions if the price is below $60 a barrel. The Greek moves also reflect signs of a rapprochement between the U.S. and Moscow soon after President Trump's return to office. But Trump's recent criticism of President Vladimir Putin—including a warning of further sanctions—shows why many other Western companies have been cautious about rebuilding their businesses in Russia. Greek shipping companies collectively control the world's biggest tanker fleet, giving them a powerful role in the oil market and access in Washington. Recent meetings with Trump administration officials left some Greek shipping chiefs more confident they won't be targeted for handling Russian exports, people familiar with the discussions said. 'Everyone's feeling like it's safe to go back," said Michelle Bockmann, a London-based maritime analyst. 'The mood music is Iran no, but Russia yes." A State Department spokesperson said the U.S. wanted to give diplomacy a chance and that there were 'a range of measures available" if Trump 'determines that Putin is not interested in negotiating." Greek ships moved 26% of Russian crude shuttled from Baltic and Black Sea ports in April and 30% in March, more than double their market share in 2024, according to Vortexa, a firm that tracks ships. Most other European and U.S. tanker companies have avoided ferrying Russian oil. They see risks in operating in a country at war with an ally of Western governments and whose economy is under a patchwork of sanctions. Greek tanker owners mostly stopped ferrying Russian crude in late 2023 when oil prices rose above the $60 cap, a measure introduced to limit Moscow's profit from a key export. That left most of Russia's crude to be handled by the 'shadow fleet" of aging tankers with obscure owners, which was assembled by Moscow to sidestep the sanctions. Greece is a member of the North Atlantic Treaty Organization and the European Union, and agreed to enforce measures to isolate Russia's economy after the 2022 invasion of Ukraine. But this year, a surge in Saudi output, coupled with concerns that the trade war will hurt the world economy, has dragged the price of benchmark Brent crude down 14% to about $64 a barrel. Russian barrels fetch closer to $50, reflecting the discount attached to the country's oil since the start of the war. At the same time, oil traders have called on Greek tankers to replace dozens of shadow-fleet ships that have effectively been put out of action by new Western sanctions. Among the tanker owners sending their ships back to Russian ports are Ioannis Alafouzos, Andreas Martinos and George Prokopiou, according to shipping data and industry executives. The Alafouzos family controls more than a dozen tankers through Okeanis Eco Tankers, which is listed in New York. At the request of its Scandinavian investors, the company stopped handling Russian oil in 2023, soon after the sanctions took effect. But the family kept moving Russian petroleum with tankers it owns privately. Mostly named after islands in the Cyclades, the ships have picked up Russian crude nine times this year, according to the shipping data. In all, Alafouzos-controlled vessels have called at Russian ports about 140 times since the war started, the data show. Several dozen of the trips were to transport Kazakh crude exported from Russia's Black Sea coast. Alafouzos is a prominent figure in Greece, where he owns the soccer club Panathinaikos as well as a newspaper and TV station among other assets. His son, Aristidis Alafouzos, is Okeanis's chief executive. Alafouzos Jr. told analysts last year that sailing in the Black Sea was no riskier than the Arabian Gulf. 'And the AG is somewhere where everyone goes," he said. Prokopiou's Dynacom Tankers has loaded Russian crude six times this year, shipping data show. Martinos's Minerva, meanwhile, sent its first tanker to pick up Russian crude in more than a year this March. Another Minerva ship is due to load in the Baltic port of Primorsk within days. Both companies have also moved Russian products, including diesel and Kazakh crude, from Russian ports dozens of times this year. Spokespeople for Dynacom and Minerva didn't respond to requests for comment. Tanker owners can demand higher freight rates to charter their ships to traders moving Russian oil than for mainstream voyages. The premium partly reflects the legal and compliance costs of working in Russia. There is also less competition as many Western tanker companies consider Russia off limits. To be sure, not all Greek tanker owners think freight rates are high enough to compensate for the risks associated with ferrying Russian crude. One of them is George Economou, who controls a fleet through TMS Tankers. Economou moved huge amounts of Russian crude after the price cap first took effect in late 2022 but is sitting out the current rush, according to people familiar with the matter. TMS is instead limiting its Russian business to a type of fuel oil. 'It's a fluid market situation," said Basil Karatzas, chief executive of U.S.-based Karatzas Marine Advisors. 'Many shipowners have a different risk assessment." Write to Joe Wallace at and Costas Paris at
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Business Standard
3 days ago
- Business
- Business Standard
India's May diesel exports to SE Asia hit multi-year high on strong margins
Increased diesel from India, one of the largest suppliers in the region, is cooling spot premiums for the fuel in Asia Reuters India's diesel exports to Southeast Asia for May are set to hit the highest in at least four years, according to shiptrackers and three trade sources, as traders eyed higher profits in Asia while higher freight costs deterred shipments to Europe. Increased diesel from India, one of the largest suppliers in the region, is cooling spot premiums for the fuel in Asia and pressuring derivatives markets, while tightening the fuel's availability in Europe and supporting prices there. Shipments on the India-Southeast Asia route climbed to 600,000 metric tons (4.47 million barrels) or more this month, shiptracking data from LSEG, Kpler, Vortexa and two trade sources showed. Such levels were last seen at the end of 2021, Kpler data showed. Most volumes were destined for Singapore or Malaysia, the data showed. Meanwhile, Indian diesel bound for Europe in May was estimated at 500,000 tons, LSEG data showed. "The re-direction of Indian diesel barrels east has had a two-fold effect," said Sparta Commodities analyst James Noel-Beswick. "First, it has flooded the Singapore market, leading to a swift rebound in local inventories and applying downward pressure on diesel spreads since late April," he said. For Europe, the drop in Indian supplies has prompted June ICE gasoil prices to rise, he added. Asian cash premiums for 10-ppm sulphur diesel fell to seven-week lows of 20 cents per barrel early this week while refining margins have been struggling to hold above $16 per barrel, LSEG data showed. ARBITRAGE The average discounts for the east-west price spread for April and May were at $22 and $20 per ton, respectively, LSEG data showed, with traders saying such levels were slightly more profitable for sellers to sell east instead of west. Lower shipping costs also helped push more Indian supply to Southeast Asia, they added. Cost for chartering a medium-range vessel carrying 40,000 tons of diesel on the India-Northwest Europe route jumped to $2.35 million in the past week, equivalent to $59 per ton, up from $2.05 million last month, SSY Tanker data on LSEG Workspace showed. In comparison, shipping fees for a similarly-sized vessel on the India-Singapore route were less than $1 million, the data added. India's diesel production also rose in May after Reliance Industries restarted a crude unit at the Jamnagar refinery, leading to more exports, said Vortexa's head of APAC analysis Ivan Mathews. Next month, India will probably export more diesel as local demand is set to fall during the monsoon season, two Singapore-based trade sources said. One of them estimated that demand could drop by 500,000 tons or more.
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First Post
3 days ago
- Business
- First Post
India's May diesel exports to SE Asia hit multi-year high on higher margins
India's diesel exports to Southeast Asia in May will hit a four-year high, cooling spot premiums and pressuring derivatives markets. Shipments reached 600,000 metric tons. read more India's diesel exports to Southeast Asia for May are set to hit the highest in at least four years, according to shiptrackers and three trade sources, as traders eyed higher profits in Asia while higher freight costs deterred shipments to Europe. Increased diesel from India, one of the largest suppliers in the region, is cooling spot premiums for the fuel in Asia and pressuring derivatives markets, while tightening the fuel's availability in Europe and supporting prices there. Shipments on the India-Southeast Asia route climbed to 600,000 metric tons (4.47 million barrels) or more this month, shiptracking data from LSEG, Kpler, Vortexa and two trade sources showed. Such levels were last seen at the end of 2021, Kpler data showed. Most volumes were destined for Singapore or Malaysia, the data showed. Meanwhile, Indian diesel bound for Europe in May was estimated at 500,000 tons, LSEG data showed. 'The re-direction of Indian diesel barrels east has had a two-fold effect,' said Sparta Commodities analyst James Noel-Beswick. 'First, it has flooded the Singapore market, leading to a swift rebound in local inventories and applying downward pressure on diesel spreads since late April,' he said. For Europe, the drop in Indian supplies has prompted June ICE gasoil prices to rise, he added. Asian cash premiums for 10-ppm sulphur diesel fell to seven-week lows of 20 cents per barrel early this week while refining margins have been struggling to hold above $16 per barrel, LSEG data showed. ARBITRAGE The average discounts for the east-west price spread for April and May were at $22 and $20 per ton, respectively, LSEG data showed, with traders saying such levels were slightly more profitable for sellers to sell east instead of west. Lower shipping costs also helped push more Indian supply to Southeast Asia, they added. Cost for chartering a medium-range vessel carrying 40,000 tons of diesel on the India-Northwest Europe route jumped to $2.35 million in the past week, equivalent to $59 per ton, up from $2.05 million last month, SSY Tanker data on LSEG Workspace showed. In comparison, shipping fees for a similarly-sized vessel on the India-Singapore route were less than $1 million, the data added. India's diesel production also rose in May after Reliance Industries restarted a crude unit at the Jamnagar refinery, leading to more exports, said Vortexa's head of APAC analysis Ivan Mathews. Next month, India will probably export more diesel as local demand is set to fall during the monsoon season, two Singapore-based trade sources said. One of them estimated that demand could drop by 500,000 tons or more. (Except headline, this story has not been edited by Firstpost staff)
Time of India
3 days ago
- Business
- Time of India
India's May diesel exports to SE Asia hit multi-year high on higher margins
India's diesel exports to Southeast Asia are projected to reach a four-year high this May. Traders are seeking better profits in Asia. High freight costs are deterring shipments to Europe. Increased Indian diesel supply is impacting Asian spot premiums. It is also affecting derivatives markets. This shift tightens fuel availability in Europe. It supports higher prices there. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ARBITRAGE Tired of too many ads? Remove Ads India's diesel exports to Southeast Asia for May are set to hit the highest in at least four years, according to shiptrackers and three trade sources, as traders eyed higher profits in Asia while higher freight costs deterred shipments to diesel from India, one of the largest suppliers in the region, is cooling spot premiums for the fuel in Asia and pressuring derivatives markets, while tightening the fuel's availability in Europe and supporting prices on the India-Southeast Asia route climbed to 600,000 metric tons (4.47 million barrels) or more this month, shiptracking data from LSEG, Kpler, Vortexa and two trade sources showed. Such levels were last seen at the end of 2021, Kpler data volumes were destined for Singapore or Malaysia, the data Indian diesel bound for Europe in May was estimated at 500,000 tons, LSEG data showed."The re-direction of Indian diesel barrels east has had a two-fold effect," said Sparta Commodities analyst James Noel-Beswick."First, it has flooded the Singapore market, leading to a swift rebound in local inventories and applying downward pressure on diesel spreads since late April," he Europe, the drop in Indian supplies has prompted June ICE gasoil prices to rise, he cash premiums for 10-ppm sulphur diesel fell to seven-week lows of 20 cents per barrel early this week while refining margins have been struggling to hold above $16 per barrel, LSEG data average discounts for the east-west price spread for April and May were at $22 and $20 per ton, respectively, LSEG data showed, with traders saying such levels were slightly more profitable for sellers to sell east instead of shipping costs also helped push more Indian supply to Southeast Asia, they for chartering a medium-range vessel carrying 40,000 tons of diesel on the India-Northwest Europe route jumped to $2.35 million in the past week, equivalent to $59 per ton, up from $2.05 million last month, SSY Tanker data on LSEG Workspace comparison, shipping fees for a similarly-sized vessel on the India-Singapore route were less than $1 million, the data diesel production also rose in May after Reliance Industries restarted a crude unit at the Jamnagar refinery, leading to more exports, said Vortexa's head of APAC analysis Ivan month, India will probably export more diesel as local demand is set to fall during the monsoon season, two Singapore-based trade sources said. One of them estimated that demand could drop by 500,000 tons or more.
Bloomberg
5 days ago
- Business
- Bloomberg
Russia's Fuel Exports Hit 3-Month High on Diesel, Fuel Oil Boost
Russia's exports of refined fuels in May are on track to reach a 3-month high as increased diesel and fuel oil shipments more than compensated for a slowdown in naphtha and other secondary feedstock fuel flows. Seaborne shipments of petroleum products totaled 2.23 million barrels a day through May 24, according to data compiled by Bloomberg from analytics firm Vortexa Ltd. That's the highest since February and 4% more than April's daily average.
