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Strait of Hormuz, the world’s main oil artery

A U.S. official stated on Tuesday that U.S. president Donald Trump would restore his "maximum-pressure" campaign against Iran and bring its oil exports to zero. Iran has threatened repeatedly to close down the Strait of Hormuz as a response to Western pressure. This would lead to the closure of trade in the region and a rise in oil prices. Here are some details on the Strait of Hormuz: The Strait is located between Oman, Iran and the Gulf of Oman. It connects the Gulf of Oman in the north with the Arabian Sea to the south. The shipping lane is only two miles wide (three kilometers) in each direction. It's narrowest point is 21 miles wide (33 km). Why does it matter? Around a fifth (or 18-19 million barrels of oil per day) or fuel, condensate, and oil are transported through the Strait. OPEC member Saudi Arabia, Iran and the UAE export the majority of their crude oil via the Strait mainly to Asia. Saudi Arabia and the United Arab Emirates have been looking for other routes to bypass this Strait. The U.S. Government says that existing UAE…

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Russian oil for March delivery to India at a lower discount

Sources say that traders offer Russian oil for March delivery to India at a lower discount After a temporary delay caused by the recent U.S. trade sanctions, which have increased trading costs, Indian sources in the refining industry said that traders have now resumed their offers to Indian refiners of Russian crude cargoes. Washington imposed sanctions on Russian producers and tankers earlier this month, disrupting the supply of the world's no. The number 2 oil producer in the world has been slowed down and ship availability is tightened. India has become the biggest market for Russian oil shipped by sea, sold at a discounted price after Western nations stopped buying it as a response to Russia’s invasion of Ukraine 2022. Sources said that while Russian crude is typically offered in the middle of the month, two months before the delivery period, only this week new trading entities began showing cargoes for delivery in March. The number of cargoes available has also decreased, while the discounts on Urals crude have shrunk compared to last year. This is because freight rates have increased after Moscow began looking for vessels to…

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Maersk to launch its new ocean network

On February 1, Maersk A/S (Maersk), an entity under A.P. Moller - Maersk, and Hapag-Lloyd AG (Hapag-Lloyd) launch their operational collaboration Gemini Cooperation.  The ambition is to deliver a flexible and interconnected ocean network with industry-leading schedule reliability above 90 percent once fully phased in. Around 340 vessels will be phased in and be a part of Maersk and Hapag-Lloyd’s shared ocean network with the first sailings taking place on February 1, and more vessels will gradually sail on the new schedules. “We are now ready to commence the phase-in of the new network. Over the last year, we have carefully planned this to ensure that all our customers experience a smooth transition into the new network. With its innovative design, we believe our customers will benefit from increased reliability, flexibility and more competitive products,” says Johan Sigsgaard, Chief Product Officer of Ocean at Maersk. The transition period is expected to last until late May, with vessels phasing into the new network, and out of the expiring agreements that Maersk and Hapag-Lloyd have with other carriers. June will be the first full month in which the network is…

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