In the same spirit as the metals perp, here's the daily shill/carnival barker "signal" alert on the "flood" of Saudi "heavy" oil:
Shell story: Message 20166086
Reuters
UPDATE - Saudi books four early July VLCCs to US-brokers
Friday May 28, 9:03 am ET
LONDON, May 28 (Reuters) - Top oil exporter Saudi Arabia has booked four very large crude carriers to the United States for loading in early July, brokers said on Friday, a sign that the OPEC (News - Websites) giant is striving to keep markets well supplied through the summer.
Shipping brokers said Vela International Marine, state oil company Saudi Aramco's chartering arm had booked the "Patris", the "Maritime Jewel" and two VLCCs managed by the Tankers International pool to load a total of eight million barrels of crude oil to the U.S. Gulf in a July 1-3 window.
Assuming a typical 35-40 day journey from the Gulf to the United States the exports are due to arrive in early to mid-August.
"It's unusual that they've come in so early when cargoes are still being worked in June, but the volume is not extraordinary," one broker with a leading house said.
"The Saudis are clever they've come in early, possibly to secure the tonnage before freight prices rise, but the move could also be seen as a strong signal to the oil market on supply," another said.
Saudi Arabia, the only OPEC member with any significant immediate spare capacity, has pledged to pump at least nine million barrels per day (bpd) in June, an increase in real extra volume of 700,000-800,000 bpd to world markets. Cautious international oil traders are keeping their eyes peeled for signs of the extra oil, saying boiling oil markets need to see evidence of the barrels on the water.
Saudi sells its oil to global refiners delivered, using its own massive fleet of 23 VLCC and ULCC-class ships and additional spot chartering if it needs to. It also sells it free-on-board to international oil companies who buy the barrels straight from any one of its oil terminals.
Most of the earmarked increase will go to Asia and there are strong signs from the chartering market that extra oil is already being loaded. Freight markets jumped this week on benchmark voyages to Asia from the Gulf as oil companies scrambled to hire more ships.
Asian refiners said this week Riyadh was supplying them with some extra barrels in June on top of regular contractual supply, though they said some might not arrive until July.
Saudi Arabia has so far fully booked eight VLCCs from the spot charter market in June to carry 16 million barrels of crude to the United States for arrival in July. That spot charter volume is not highly unusual and compares with similar volumes booked to move in April and May.
Brokers reported the oil giant's spot charter volume for delivery in May and early June at 16.4 million barrels. Vela's spot bookings to U.S. shores in April totalled 14.5 million, brokers say. Those figures represent bookings at the time but brokers say Vela rarely fails vessels.
The spot Saudi chartering in June to date is still only half the unprecedented volume Riyadh moved last year, just before the United States attacked Iraq, when Vela snapped up 14 supertankers on the charter market to ferry a colossal 29.5 million barrels to calm oil markets. |
