• TAC - The Arnold Companies
The Arnolds Companies

International Tanker Rates Have Increased

Wednesday, Oct 16 2019
Market Talk

International tanker rates reached an elevated $10/bbl yesterday, sending crude benchmarks lower Tuesday. Traders anticipate more crude will stay parked rather than being shipped for transcontinental arbitrages, leading to higher US stockpiles. That combined with an EIA estimate of an increase in shale oil production for November sent WTI 1.5% lower yesterday.

Two San Francisco Bay Area refineries experienced production disruptions yesterday in the wake of a 4.5 magnitude earthquake as measured by the US Geological Survey. Spot market reaction to the news was relatively mild for LA, with California grade diesel up about 2 cents on the news at yesterday’s settlement. The earthquake also caused a couple of ethanol tanks to catch fire at NuStar Energy’s Crockett plant. Fortunately the fire was quick contained and extinguished with no reported injuries.

The system in the Gulf of Mexico has cleared the Yucatan Peninsula and now has a 50% chance of organizing into a tropical storm over the next 5 days. Forecasts on its direction are still vague, placing its destination somewhere along the Texas and/or Louisiana coast. Refiners will be keeping a close eye on its progression and potential impacts.

 The energy complex is mixed this morning, with RBOB and Brent crude sinking lower while HO and WTI are showing green. Save any more drama from the Middle East or US-China bickering, traders will be looking to the inventory reports due out today and tomorrow for price direction. It will be interesting to see if the anticipated impact of the premium over crude carrier services will bring down American crude oil exports, which have set seasonal highs every week this year, over the next month.

Click here to download a PDF of today's TACenergy Market Talk.

TAC - The Arnold CompaniesTACenergyTAC AirKeystone Aviation

Latest Posts

News Update: New Senior Vice President and Chief Financial Officer
The Crescent® Renews and Expands Leases Totaling 48,856 Square Feet
Keystone Aviation Renews WYVERN Wingman Certification
TAC Air and The Wall Street Journal Launch Digital Newspaper Distribution for Business Aviation Executives

Archive

Latest Posts

Archive

The Arnold Companies
  • About
  • News & Views
  • Social Media
  • Careers
  • Contact Us
  • Sitemap
TACenergy
  • Supply
  • Customer Login
  • Apply For Credit
  • Market Talk Updates
  • Contacts
  • Blog
  • Social Media
Find Your Next Great Role With TAC.
Explore Careers
  • Privacy Policy
  • Terms of Use
  • Employee Login
TAC - The Arnold Companies © 2021. All Rights Reserved.