Sanctions push trans-Atlantic product freight to Venezuela to huge premium
By Arthur Richier, Solomon Lanitis / Platts
Petroleumworld 03 18 2019
US sanctions on Venezuela are driving freight rates for clean oil products heading across the Atlantic to the country to enormous premiums, according to shipping reports.
The Torm Lotte, a 50,000 deadweight Medium Range tanker, was heard on subjects on Friday to load a 37,000 mt gasoline cargo from Cartagena, Spain with options to discharge trans-Atlantic at Worldscale 185 points or Venezuela at w270, the latter believed to be its final destination. The tanker has been reported by multiple shipbrokers as chartered by Repsol.
The rate to discharge in Venezuela represents a Worldscale 90 points premium to the freight rate for loading a cargo in the Mediterranean and discharging in Brazil, currently at w180 according to market participants surveyed.
Repsol and Venezuela's PDVSA have a term agreement, which sees Venezuela exchange crude for products. Due to the swap deal, Repsol is continuing to look to import gasoline into Venezuela, but rising freight costs have become an issue.
"There could be many reasons for the premium being this high, but it could be as simple as this being the only owner agreeing to go there," said a shipbroker.
According to S&P Global Platts software cFlow, the Torm Lotte was off the coast of Morocco on Friday, 424 nautical miles from the port of Cartagena, Spain.
We invite you to join us as a sponsor.
Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.
Story by Arthur Richier, Solomon Lanitis from Platts / SPGlobal.
spglobal.com 03 15 2019
Hit your target - Advertise with us
PW 300.000 plus request per week
Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.
We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.
Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.
Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to email@example.com
By using this link, you agree to allow PW
to publish your comments on our letters page.
Any question or suggestions,
please write to: firstname.lastname@example.org
Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels