BUSINESS NEWS | Saudi Arabia May Re-Route Tankers If U.S. Imposes Crude Import Ban: Sources

RIYADH | SAUDI ARABIA – Saudi Arabia is looking into re-routing millions of barrels of oil onboard tankers sailing to the United States if President Donald Trump decides to block imports of crude from the Kingdom, shipping and trade sources say.

Some 40 million barrels of Saudi oil are on their way to the U.S. and due to arrive in the coming weeks, piling more pressure on markets already struggling to absorb a glut of stocks, according to shipping data and sources.

U.S. officials have said in recent days that Washington is considering blocking Saudi shipment of crude oil, or putting tariffs on those shipments, adding to difficulties for the cargoes now on the water.

Shipping sources said the kingdom has tried to seek storage options for the cargoes from tanker owners when the ships were chartered last month, but many pushed back given booming rates and now wanting tied up vessels.

Two sources said Saudi Arabia was looking into whether it could re-route the cargoes elsewhere if the United States halted imports.

Saudi officials did not immediately respond to request for comment.

Oil traders active in European and Asian markets said there was expectation that the Saudis would look to divert the cargoes to other markets if a ban was imposed, in a move that would then put huge pressure on storage in those two regions.

‘Europe looks full, but surely if the Saudis offer it at really cheap levels, buyers would take it’, a source with an international trading firm said.

‘Some still have storage spaces or may agree to float it for some time’.

A source at a separate oil trading firm active in Asia said they expected many of the barrels that were bound for the U.S. to flow to the region if exports were blocked.

The slump in demand triggered by the coronavirus and the hunt for storage options had prompted the United States to consider such action.

U.S. senator Ted Crus said in on Twitter on Tuesday: ‘My message to the Saudis: TURN THE TANKERS THE HELL AROUND’.

Shipping data showed 19 supertankers – each capable of carrying 2 million barrels of oil – were sailing to key U.S. terminals, especially in the U.S. Gulf.

Three separate tankers, also chartered by Saudi Arabia, were currently anchored outside U.S. Gulf ports, the data showed.

‘This could to be a very expensive exercise for Saudi Arabia as whatever happens with the cargoes and the tanker owners will need to be paid demurrage (for the ships) and those cost would have been locked in when the market was higher to secure the charters’, a shipping source said.

‘While this is an expensive gamble for the Saudis, shutting off production would have been proved even more costly’.

Additional costs, known as demurrage, were estimated at $250,000  a day based on rates last month when a lot of vessels were blocked.

Daily tanker rates have soared to nearly $300,000 a day in the past month and reached $150,000 a day this week, which would be in addition to other costs including insurance if the ships are held up.

U.S. Refiners Pull Back

Refiners have been largely absent from oil markets in the United States in recent days as they slash processing rates and as demand dries up, physical oil market sources said.

‘There is more reluctance now with fresh shipments as refiners in the U.S. have no homes for the oil’, another shipping source said.

Marathon Petroleum, Exxon Mobil, Chevron and Phillips 66, among the biggest U.S. buyers of Saudi crude, did not immediately respond to request for comment.

Most of the large buyers of Saudi oil are along the West Coast. The region accounts for about half of all Saudi crude imports to the United States, according to the EIA Storage there was already 65% full as of April 10.

The Gulf Coast is the second biggest destination in the United States for Saudi oil, and storage there was about 55% full.

U.S. crude futures crashed on Monday, with the front-month May contract, which expires on Tuesday, settling at negative $37.83 a barrel. That steep fall came as traders scrambled to get out of the contract to avoid taking delivery of barrels due to a lack of storage.

The imminent arrival of the cargoes comes at a time when the main U.S. storage hub in Cushing, Okklahoma, the delivery point for WTI crude, is expected to be full within weeks.

President Donald Trump said on Monday he would ‘look at’ possible stopping Saudi shipments to the United States.

Last week, Frank Fannon, the U.S. assistant secretary of state for energy resources, said tariffs were a possibility.


NEWS ALERT | In U.N. Debut, Saudi King Calls For Comprehensive Solution On Iran

NEW YORK  – Saudi Arabia’s King Salman bin Abudlaziz on Wednesday called for a comprehensive solution on Iran and disarming its affiliate Hezbollah in Lebanon, and expressed support for U.S. efforts to start talks between Israel and the Palestinians during his first address to the United Nations General Assembly. He said Iran has exploited a … Continue reading NEWS ALERT | In U.N. Debut, Saudi King Calls For Comprehensive Solution On Iran

ARTS & CULTURE & ENTERTAINMENT | Jeddah Host The Red Sea Museum

The Saudi Ministry of Culture announced the establishment of the Red Sea Museum, which will open its doors in 2020, in Bab Al Banat in the Historic Jeddah. The ministry says the museum will include manuscripts, photos, and books, which tell the story of the Bab al-Bunt’s heritage and demonstrate its role as a historical … Continue reading ARTS & CULTURE & ENTERTAINMENT | Jeddah Host The Red Sea Museum

NEWS | Saudi Deputy Defense Minister Hopes Peace Is Restored In Yemen Based On Riyadh Agreement

RIYADH | SAUDI ARABIA – Saudi Deputy Defense Minister Prince Khalid bin Salman said Tuesday that the Kingdom is looking forward to the establishment  of ‘comprehensive and lasting peace in Yemen through the implementation of the Riyadh Agreement’. On the occasion of the International Day of Peace, he said: ‘We look forward to the day … Continue reading NEWS | Saudi Deputy Defense Minister Hopes Peace Is Restored In Yemen Based On Riyadh Agreement

ARTS & CULTURE & ENTERTAINMENT | The New Digital – Art Museum Is Coming To Saudi Arabia

Saudi Arabia’s Ministry of Culture has announced a collaboration with international art collective teamLab to create a digital-art museum as part of the Kingdom’s Vision 2030. The museum will be located in Jeddah, and is set to be called TeamLab Borderless Jeddah and will open in 2023. The 10 – year collaboration agreement between Saudi … Continue reading ARTS & CULTURE & ENTERTAINMENT | The New Digital – Art Museum Is Coming To Saudi Arabia

FASHION | Billy Porter’s 2020 Emmys Ensemble Was Custom – Made By This Saudi Label

Billy Porter is known for his unapologetic style and statement red carpet looks. Despite this year’s Emmy Awards being held digitally, porter didn’t hold back from bringing his show-stopping outfits to the event, wearing a custom-made ensemble by Saudi label, Ashi Studio. The actor, who was nominated for the award for outstanding lead actor in … Continue reading FASHION | Billy Porter’s 2020 Emmys Ensemble Was Custom – Made By This Saudi Label

NEWS | Bahrain Says Foiled ‘Terrorist Attack’ Backed By Iran In Early 2020

Bahrain’s interior ministry said on Sunday it had foiled a ‘terrorist attack’ early this year that was backed by Iran’s Islamic Revolutionary Guard Corps. The statement confirmed earlier media reports about an alleged planned attack and added a timeframe. Earlier on Sunday Saudi state television Al-Ekhbariya and Bahraini newspaper Akhbar Al-Khaleej reported that interior ministry … Continue reading NEWS | Bahrain Says Foiled ‘Terrorist Attack’ Backed By Iran In Early 2020

BUSINESS | LVMH Submit Disputed Tiffany Takeover For EU Clearance

PARIS | FRANCE – LVMH said on Friday it had submitted its troubled takeover of Tiffany, which is now at the centre of  a legal dispute between the two groups, for EU approval as it seeks to counter accusations that it deliberately stalled antitrust proceedings. The French group’s $16 billion acquisition of the U.S. jeweler … Continue reading BUSINESS | LVMH Submit Disputed Tiffany Takeover For EU Clearance

TRAVEL | What You Need To Know About Travel Guidelines In Saudi Arabia

The Saudi General Authority of Civil Aviation (GACA) has released its updated traveler’s guide, which accommodates the ongoing pandemic after approving international travel for some exceptional cases. The new regulations entail that non – Saudis who are entering the Kingdom must provide a medical report of their coronavirus disease (COVID-19) test and its negative results, … Continue reading TRAVEL | What You Need To Know About Travel Guidelines In Saudi Arabia

WORLD NEWS | Trump Awards Kuwaiti Emir ‘Prestigious’ Decoration, White House Says

WASHINGTON – U.S. President Donald Trump awarded the U.S. Legion of Merit, Degree Chief Commander, to Kuwaiti Emir Sheikh Sabah al-Ahmed al-Sabah, the White House said in a statement on Friday, adding that it was the first time the honor had been given since 1991. The 91-year-old emir arrived in the United States in July … Continue reading WORLD NEWS | Trump Awards Kuwaiti Emir ‘Prestigious’ Decoration, White House Says

BREAKING NEWS | Saudi – Led Coalition Says Intercepts Drone, Houthis Say Abha Airport Hit

MILAN | ITALY – A Saudi-led coalition fighting in Yemen said on Thursday it had intercepted and destroyed an explosive drone launched towards the kingdom as Yemen’s Houthi group said it had it a target at Saudi Arabia’s Abha airport. In a statement published by Saudi state news agency SPA, a spokesman for the coalition … Continue reading BREAKING NEWS | Saudi – Led Coalition Says Intercepts Drone, Houthis Say Abha Airport Hit

Loading…

Something went wrong. Please refresh the page and/or try again.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s