Filenews 26 March 2021
Tanker oil fares almost doubled this week after the shock of blocking the Suez Canal, as the giant ship Evergreen remains stranded between the two banks.
Efforts to move the 400-metre-long ship, which has been stranded since Tuesday, could take weeks amid bad weather.
The Japanese owner of the ship Shoei Kisen denied a report that it plans to move it on Saturday night, saying efforts to detach it are continuing. The Suez Canal Organization welcomed the U.S. offer to help.
Analysts expect a bigger increase in fares for smaller tankers and oil products, such as naphtha and fossil fuel exports from Europe to Asia, if the canal remains closed for weeks.
"The supply of about 20% of the Asian naphtha is from the Mediterranean and the Black Sea via the Suez Canal," an FGE official said, adding that the new routes the ships will make, around the Cape of Good Hope, could increase their fuel consumption of Suezmax tankers by more than 800 tonnes. Fuel is the highest cost to ships, accounting for up to 60% of total costs.
The already weak Asian petrol or diesel market is exacerbated by the blockade as Asia exports fuel to Western markets such as Europe, 60% of which were through Suez in 2020. More than 30 oil tankers had been waiting since Tuesday on both sides of the canal to cross, according to Refinitiv data.
The impact of ship delays on energy markets is likely to be limited by demand for crude and liquefied petroleum gas (LNG) in low season, analysts said.
The cost of chartering products such as gasoline and diesel from the Russian black sea port of Tupse in the South of France rose from $1.49 per barrel on March 22 to $2.58 on March 25, a 73% increase, according to Refinitiv.
Source: Capital.gr
