Why Analysts Think Oil Prices Will Remain Subdued

Oil prices will likely remain around current levels or even lower this year, analysts and economists in the monthly Reuters poll said last week.

Sufficient oil supply and spare capacity within the OPEC+ group will be enough to keep prices in the low $70s per barrel, the experts said.

Supply shocks would be balanced out with the 5 million barrels per day (bpd) of spare capacity that OPEC+ currently has, mostly within the Middle Eastern producers in OPEC. Continue reading here (Source: OilPrice).

Shipping's 2025 Outlook Brims With Uncertainty

The maritime industry is once again bracing for a year of profound transformation. According to an analysis by ING, 2025 is set to be a period of "tumultuous" year, characterised by heightened "trade disruption risks”. 

Underscoring the pervasive influence of geopolitics on the shipping landscape, Rico Luman, ING's senior sector economist, noted that “wars and political tensions have altered trade patterns, and protectionist actions may cause new inefficiencies”. The central challenge, as Luman highlights, revolves around the resumption of the Red Sea/Suez route, “crucial for container shipping”. Protracted rerouting around the Cape of Good Hope, initially perceived as a temporary measure, has now become a de facto new normal, consuming a significant portion of the container fleet capacity and generating cascading delays across global supply chains. Continue reading here (Source: Baltic Exchange).

Shipping in the Midst of the Ongoing Trade Wars

The escalation of tariffs and trade wars is spilling over to the shipping industry, especially if US' proposal to target Chinese-built ships moves ahead. In latest weekly report, shipbroker Xclusiv said that "the U.S. Trade Representative's (USTR) proposal targeting Chinese maritime interests, particularly Chinese-built ships, port fees, and related sanctions, represents a significant escalation in the ongoing trade tensions between the U.S. and China. The proposal, if implemented, could have far-reaching consequences for both the global shipping industry and U.S. trade dynamics. However, the dominant position of Chinese shipyards in the global market, combined with the ongoing international demand for Chinese-built vessels, suggests that such measures may not be as effective as intended. Continue reading here (Source: Seatrade Maritime News).

US Shipping Businesses Bankruptcy Warning Over China Built Vessel Fees

The recommendations of the United States Trade Representative (USTR) to impose fees on port calls of vessels built in China or operated by Chinese-linked entities, imprecisely defined, has caused a stir throughout the shipping business, and among participants in broader supply chains.

The USTR’s findings, in a study initiated in Spring, 2024, support the idea that China has sought to dominate maritime and logistics businesses, and is therefore “actionable” under Section 301 of trade legislation in Section 19 of the US Code of Federal Regulations. In advance of a hearing scheduled for March 24th, where industry participants are invited to speak, providing opinions on Proposed Actions, for up to five minutes each, submission of comments (which will also be considered by the USTR) posted on an online docket has already begun. Continue reading here (Source: Seatrade Maritime News).

US Senators Introduce Bipartisan Bill to Support Bio Bunker Fuels in Ocean-Going Vessels

US Senators Pete Ricketts and Amy Klobuchar on Thursday (6 March) introduced the Renewable Fuel for Ocean-Going Vessels Act, a bipartisan bill that would allow companies to preserve Renewable Identification Number credits (RINs) under the Renewable Fuel Standard (RFS) program, when the fuel for use is in ocean-going vessels.

The RFS excludes “fuel used in ocean-going vessels” from the definition of transportation fuels and from refiners’ and blenders’ obligations. Refiners and blenders are currently required to retire RINs from any biodiesel and renewable diesel used in vessels with Class 3 engines operating in international waters, including the Great Lakes. In the first ten months of 2023, more than 5 million D4 RINs were retired under this rule. Continue reading here (Source: Manifold Times).

Singapore Releases New Standard on Methanol Bunkering, Gears Up For Multi-Fuel Future

Singapore has launched a new standard for methanol bunkering, marking an important step towards enabling methanol bunkering at scale and cementing its position as a sustainable, multi-fuel bunkering hub.

As informed, the Maritime and Port Authority of Singapore (MPA) and Enterprise Singapore (EnterpriseSG), through the Singapore Standards Council (SSC), have published a new Technical Reference (TR) 129 on Methanol Bunkering to provide “a comprehensive framework for the safe and efficient use of methanol as an alternative fuel for bunkering operations." Continue reading here (Source: Offshore Energy).