VLCC unloads US crude oil in Europe for the primary time

Arbitrage opens up for VLCC crude oil cargoes from US to Europe
Europe receives the first-ever VLCC crude oil cargo from the US

In response to VesselsValue and different sources, the first-ever VLCC cargo of US crude oil exported to Europe is at present being discharged in Rotterdam.

A former Olympic Transport and Administration VLCC, Nasiriyah (ex-Olympic Woman) is discharging Permian Basin crude oil which was loaded in Texas on or round 18 December (see monitoring above).

The Permian Basin crude oil was loaded on the Moda Ingleside Energy Center near Corpus Christi, Texas. Moda bought the ability from Occidental Petroleum and expects to export one other 5 VLCC cargoes of crude oil to Europe by the tip of January.

Final yr noticed a number of US crude oil export services developed together with Buckeye Texas Hub and Jupiter Export Terminal.

In response to analysts, Permian Basin crude oil is often exported to Europe on Aframax tankers however the improve in charges in that sector and decrease VLCC charges opened an arbitrage for merchants to raise a VLCC cargo (2M barrels) as an alternative of the traditional 500,000 barrels through Aframax, saving US$2M on the equal charters for 4 Aframaxes.

2017-built Nasiriyah is one in all a pair of Olympic Transport VLCCs on constitution to Al-Iraqia Shipping Services & Oil Trading and was the primary VLCC to load at Ingleside. As a result of depth of water, it is just in a position to load 1.2M barrels with the rest of the cargo lightered within the Gulf.

Enterprise, operational and technical points impacting the crude, product and chemical tanker trades shall be mentioned on the Asian Tanker Conference in Singapore in February.

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