.jpg)
1 hour ago
2
Article content
(Bloomberg) — Some shipowners are avoiding Fujairah — a major oil port just outside the Strait of Hormuz — prompting cancellations that should allow producers to resell the cargoes at a higher price.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
A widening conflict in the Persian Gulf has upended the energy trade in the region, hitting oil and gas infrastructure and all but cutting off traffic through Hormuz, the narrow waterway connecting producers in the region with the rest of the world. Fujairah, one of the few terminals in the region that is still exporting, has also reported missile threats.
Article content
Article content
Article content
Nippon Yusen KK has stopped calling at the United Arab Emirates port, a spokesperson at the Japanese company said. At least one major European shipper is also shunning the terminal, according to traders with knowledge of the decision, who asked not to be named discussing sensitive information.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Shipping companies are wary of drone or missile strikes and also cite hesitant insurers, the traders said. This week, local authorities said they contained a fire at the Fujairah Oil Industry Zone caused by falling shrapnel following air defense interceptions, according to state-run news agency WAM. Several buyers have had to cancel their some term shipments of Murban oil, returning the crude to Abu Dhabi National Oil Co., they said.
Article content
Adnoc has since marketed some prompt cargoes, they said. The canceled cargoes would have been sold to the original buyers at the $63.99-a-barrel official selling price for Murban for March, and may now be able to command spot market prices — well over $80 on Wednesday, even after recent volatility.
Article content
Adnoc didn’t respond to requests for comment on the matter.
Article content
Other ports still exporting Middle Eastern oil include Yanbu on Saudi Arabia’s western coast, and Mina al Fahal in Oman.
Article content
—With assistance from Anthony Di Paola.
Article content
English (US)