Record number of VLCCs at LOOP

Medium-sour crudes from the Gulf of Mexico (GoM) are being gobbled up by Asian oil buyers, paving way for a record six supertankers to load at the Louisiana Offshore Oil Port (LOOP) in a matter of weeks, according sources. The six scheduled loadings in late May and early June would double the record of Very Large Crude Carriers (VLCCs) reached in December. An unusual influx of GoM crudes to the U.S. deepwater export port at Port Fourchon, La., and weakening prices are contributing to the exports. Mars Sour, a GoM crude produced by Royal Dutch Shell Plc, traded at a $4.40 on June 3, falling from a 2019 high mark of $8.10 in mid-February. Following U.S. sanctions on Venezuela and Iran, and some production cuts, medium-sour grades are helping fill Asian markets with a new supplier. New Prime, chartered by Shell, began loading crude at LOOP on June 3, following two departures since May 31 of supertankers chartered by China's Unipec and Mercuria, according to trade sources and data from Refinitiv Eikon and vessel-tracking service Kpler. Three other supertankers are expected to load at LOOP through mid-June, they added. In recent weeks, more crude produced in the GoM has been piped to LOOP for loading onto vessels, instead of to domestic refiners, trade sources indicated. (Source: Marine Link 06/04/19)