A very minor shift in the LNG market may mean a huge change for ship owners. In other news, an Australian election has taken place which dismissed the implications of climate change, oil traders have been shipping dirty Russian oil off to Asia, China’s muted economy has been argued to be unable to nurture other commodities and energy trade has been reviewed in the attempt to create business risks – and potential openings.
Here is a selection of our top news stories this week:
LNG market is set to bring huge benefits to ship owners: As the price of liquid gas is cheap and cheerful, traders are now looking at tankers to store fuel in the hope of better returns. Until last fall, it wasn’t used to such as extent, but a warmer winter than expected meant fuel was less in demand and therefore, reduced the price dramatically. LNG analyst Nick Boyes said: “We could see a lot of floating LNG storage from September and this could also tighten shipping rates before winter. Please click here to read more
What happened to Australia’s climate change election? It was expected by voters that an Australian election would be taking place in the interests of climate change, so that leaders could tackle the issue. Overall, Australians seemed to dismiss the fact that the ocean’s overheating temperature was killing the Great Barrier Reef and causing farmers to face difficulties. With Australia having its hottest summer on record, even sceptics are cannot deny the effects of climate change. It seems that climate change may become one of the most fundamental battles in terms of democracy. Please click here to read more
Contaminated oil is being transported to Asia: Trading companies Vitol and Unipec have been sending over 700,000 tonnes of dirty Russian oil to Asia in the attempt to place barrels that were rejected by buyers in Europe. The two companies are targeting Chinese independent refiners as part of the scheme, due to taking interest in the oil. Despite this, the oil needs to be diluted due to being contaminated with organic chloride content that damages refining equipment. Please click here to read more
China can’t hack new commodity super super-cycles: The commodities super-cycle was thought to be at an end, but many believe it is set to make a swift return with the new demands for natural resources. In 2019, the commodity price was extremely high, but this has now changed due to less reliance on manufacturing and a clearer focus on services. Commodities are therefore, in very low demand due to the fluctuating marginal costs which has left China’s economy in trouble. Please click here to read more
Energy trade creates both business benefits and risks: Thriving sanctions are creating issues for some companies and benefits for others as the industry faces huge changes. This is even more evident in the energy trade sector when it comes to traders, managers, banks and oil companies. The risk to business is increasing for several reasons, however a former top said: ‘it’s more lucrative and rewarding to help companies navigate the sanctions era”. Please click here to read more