World's Largest Tanker Operator Cautions Against Hormuz Rush
India’s ONGC Considers Resuming Venezuela Oil Operations What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… The U.S.-Iran deal has raised hopes that the oil supply disruption in the Middle East could be nearing its end, but the biggest international tanker operators aren’t rushing to return to the Strait of Hormuz.
Oil tanker owners and operators are cautiously optimistic, but they will wait until they see a “material” agreement and safety guarantees before returning to the world’s critical oil and gas chokepoint, Jotaro Tamura, chief executive officer at Mitsui OSK Lines, the world’s largest tanker operator, told theFinancial Times.
Since the U.S.-Iran agreement wasannouncedthis weekend, shipping companies havemade it clearthat they will wait until the deal is formalized on Friday before attempting to cross the Strait of Hormuz.
Even for shipowners who are willing to make the crossing, organizing insurance and other practical issues could further delay the recovery.
“Given the experiences in the last couple of months, I think it’s reasonable to assume that it may take at least a couple of weeks or if not a month,” Mitsui OSK Lines’ Tamura told FT in an interview published on Tuesday.
“What will have to come in place is not just a simple agreement between the relevant countries, but it has to be material and translated into the real situations in the Strait of Hormuz, so that shipping lines can make themselves comfortable to go through,” the executive added.
Tamura spoke to FT before the deal was announced, but Mitsui OSK Lines on Monday said the company’s view of weeks until traffic resumes remains.
President Trump on Mondaypostedthat “Ships are starting to move, many loaded up with Oil, out of the Strait of Hormuz.
They are going along the Southern “Highway,” which is totally safe, secure, and pristine.” The U.S.-Iran deal and the potentially imminent reopening of the Strait of Hormuzdo not meanthat oil and gas trade will quickly return to its previous levels, tanker owners and energy analysts say.
Banks Slash Oil Price Forecasts After U.S.-Iran Breakthrough India’s ONGC Considers Resuming Venezuela Oil Operations What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Oil Prices Jump After U.S.
Strikes Iranian Missile Sites Three Supertankers Carrying 6 Million Barrels Exit Strait of Hormuz Oil Prices Plunge as U.S.
and Iran Reach Deal to Reopen Strait of Hormuz Australia's 344-Million-Barrel Oilfield Could Finally Get the Green Light Ukraine Hits 300,000-Bpd Gazprom Neft Refinery in Overnight Drone Strike The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment