Wider price spreads between US crudes and Dubai-based crudes have opened arbitrage opportunities to export US crude to Asia, leading to a recent increase in VLCC exports out of the US Gulf Coast, S&P Global Platts data shows. The second VLCC to partially load in the Houston Ship Channel was seen docked at the Enterprise Products’ Texas City facility on Monday, according to cFlow, Platts’ trade flow software. The Eagle Victoria, with a capacity of more than 2 million barrels, arrived on Saturday. A cargo was fixed to the vessel for mid-July loading by SK Energy for delivery to South Korea for a lump sum of $4.8 million, according to Platts fixtures report. A spokesman for Enterprise did not return a request for comment Monday. The FPMC C MELODY, another VLCC, was recently partially loaded in the Enterprise Products’ Texas City dock on the Houston Ship Channel — marking the first time a VLCC has loaded and sailed from any port in Texas. The vessel was partially loaded at Texas City and then a ship-to-ship transfer completed the loading in deeper water offshore Galveston. The vessel was in the South Atlantic Ocean on Monday and is heading to West Coast… continue reading
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Source: CTRM Center