FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: Reliance Secures Iraqi Crude Cargo at Record Freight Rate

By

Reliance Industries booked a supertanker at a record freight rate to transport Iraqi crude, with the charter expected to cost about $23 million to $25 million, Reuters reported Friday, citing three shipping sources.

The refiner booked the Sinokor-operated supertanker at a freight rate of about 1,200 World Scale to ship a 2 million-barrel cargo, while comparable voyages cost about $2 million before the conflict, according to the report.

Reliance is expected to recover its higher shipping costs through steep crude discounts offered by Iraq's state oil marketer, SOMO, resulting in millions of dollars in savings on the cargo, the report said.

Steep discounts have drawn interest from Indian and Chinese refiners, although shipowners remain reluctant to send vessels through the Strait. Reliance Industries and Sinokor did not immediately reply to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Related Articles

Oil & Energy

US Oil Update: Crude Settles Higher as Markets Monitor Iran-Oman Hormuz Developments

Crude futures climbed almost up 5% in after-hours trade on Thursday as markets weighed hopes for a shipping corridor through the Strait of Hormuz with renewed uncertainty over potential restrictions on vessels using the strategic waterway.Front-month West Texas Intermediate crude futures climbed by 4% to $77.88 per barrel, while Brent futures advanced 4.8% to $83.25/bbl.Earlier on Thursday, Iran and Oman were reportedly close to finalizing a deal on shipping through the Strait, as both Iran and the US signaled that an agreement could be announced soon.On Wednesday, Iran's Foreign Ministry spokesman Esmaeil Baqaei said Iran and Oman had reached an understanding on the geographic coordinates for a shipping route through the Hormuz, and a joint announcement is being finalized.Baqaei said talks between Iran and Oman had been underway for the past two months to establish a safe passage mechanism for commercial vessels transiting the strategic waterway.Saxo Bank strategists said reports that Iran and Oman had agreed to establish a shipping corridor through the Hormuz marked a step toward reopening the strategic waterway and raised expectations of higher Middle East energy exports.Despite the potential for progress, uncertainty remained over access through the waterway.An Iranian lawmaker reportedly said a parliament committee was reviewing a preliminary bill to ban US, Israeli and other vessels deemed hostile from the Hormuz, and fine violators up to 20% or a fifth of cargo value.The restrictions would extend to "countries and individuals that have caused damage to Iran" until that harm is "compensated."ING strategists said that the real hinge point is the trajectory of US-Iran discussions, because meaningful progress there is essential before disrupted energy flows can realistically resume.Responding to questions from the press during a White House event on Thursday, President Donald Trump said the Strait of Hormuz was "sort of open right now."He added that the US naval blockade on Iranian ports remained firmly in place and that he was involved in negotiations, with a deal potentially coming soon.Adding to regional supply concerns, Yemen's Houthis launched attacks in central and eastern Yemen on Thursday, resulting in the death and injury of "hundreds" of internationally recognized government troops.The attack comes a day after the group attacked a Saudi oil tanker in the northern Red Sea off the coast of Yanbu.Houthi spokesperson Yahya Saree said that the Iran-aligned militant group plans to expand operations into the northern Red Sea after alleging that Saudi tankers had begun rerouting away from the Bab el-Mandeb Strait.Meanwhile, Iran reportedly warned Gulf states that any new US attack on its territory would trigger retaliation against critical energy infrastructure across the region.

Oil & Energy

Security Threats Keep Hormuz, Bab el-Mandeb Shipping Flow Subdued

Commercial vessel traffic through the Strait of Hormuz and the Bab el-Mandeb remained subdued as security threats from Iran and Yemen's Houthis continued to weigh on shipping, according to maritime agencies and shipping data released on Thursday.Traffic through the Strait of Hormuz remained below normal during the 48 hours to Aug. 6 following multiple incidents reported by the UK Maritime Trade Operations.Independent tracking data showed only single-digit tanker movements in both directions, indicating suppressed traffic, the UKMTO said.UKMTO said that Iranian forces continued activity targeting commercial shipping, including vessel hailing, unmanned aerial vehicle overflights and surveillance operations.The maritime safety agency said that the incidents underscored Tehran's continued effort to maintain a presence along strategic maritime routes and exert pressure on vessels operating through the waterway.Kinetic risks also remained elevated around the southern approaches to the Strait, particularly near Limah, Khasab and Kumzar off Oman, where projectile strikes and near-miss explosions were reported, according to the UKMTO.In the Strait of Hormuz, the US Central Command said in an X post on Thurday that its forces had redirected 48 commercial vessels, disabled two vessels and boarded two others as part of efforts to protect maritime traffic and respond to threats in the region as of Aug. 5.UKMTO said commercial traffic through the southern Red Sea and Bab el-Mandeb remained below normal levels following a July 20 announcement by Houthis restricting Saudi-flagged vessel movements."The reduction reflected a posture shift following previous confirmed Houthi attack on a Saudi-flagged tanker," the UKMTO said.In the northern Red Sea and Suez Canal, no confirmed attacks or operational disruptions were reported during the latest 48-hour monitoring period as of Aug. 6, while Suez Canal transits continued normally, the UKMTO said. However, elevated Global Navigation Satellite System interference around Yanbu persisted, though it had not affected shipping flows.Preliminary data for July 27 to Aug. 2 showed 266 transits, suggesting shipping traffic had stabilized following the initial decline, according to Lloyd's List Intelligence's Red Sea Brief for Aug. 6.Lloyd's List said vessel traffic through the Bab el-Mandeb Strait fell 24% after the Houthis imposed a maritime blockade on Saudi Arabia, although transit volumes have largely stabilized following the initial decline.Despite the disruption, Saudi crude exports continue through "lighter loadings, partial discharge operations, and use of the Sumed pipeline to bypass Suez draught restrictions," Lloyd's List said, noting that security risks remain elevated amid continued Houthi attacks.

Oil & Energy

Air Canada Aims to Launch Service to Lagos, Nigeria, in 2027

Air Canada (AC.TO) is working to obtain government approvals ahead of it launching scheduled service to Lagos, Nigeria, next year, the company said on Thursday.The federal government, earlier Thursday morning, announced an expanded air transport agreement between Canada and Nigeria that stipulated a capacity allowance of 14 weekly passenger flights and 10 weekly all-cargo flights for the airlines of each country."We welcome this expanded Air Transport Agreement and look forward to obtaining the necessary government approvals to begin service to Lagos, Nigeria in the coming year," said Mary-Jane Lorette, vice president of International Affairs at Air Canada.Air Canada shares were last seen down C$0.19 at C$26.39 on the Toronto Stock Exchange.Price: $26.39, Change: $-0.19, Percent Change: -0.73%

$AC.TO