Tankers: UAE Crude Oil Exports on the Rise

Crude oil exports so far in 2024, have returned to positive, after a drop in 2023. In its latest weekly report, shipbroker Banchero Costa said that “2023 has been another positive period for crude oil trade, despite the high oil prices and risks of economic recession. In Jan-Dec 2023, global crude oil loadings went up +4.7% y-o-y to 2186.8 mln tonnes, excluding all cabotage trade, according to vessels tracking data from Refinitiv. The positive trend continued in JanAug 2024, when global loadings increased by +1.1% y-o-y to 1475.3 mln t, from 1459.2 mln t in the same period of 2023”.

According to the shipbroker, “exports from the Arabian Gulf were down by -1.1% y-o-y to 580.3 mln t in Jan-Aug 2024, and accounted for 39.3% of global seaborne trade. Exports from Russian ports (including Kazakh crude) increased by +1.0% yo-y to 157.1 mln tonnes, or 10.6% of global trade. From the USA, exports increased by +5.6% y-o-y to 135.6, or 9.2% of total trade. From South America, exports surged by +9.7% y-o-y to 113.1 mln t. In terms of demand, the top seaborne importer of crude oil in Jan-Aug 2024 was Mainland China, accounting for 23.1% of global trade. Volumes into China declined by -0.1% y-o-y to 341.9 mln t in Jan-Aug 2024, from 342.4 mln t in Jan-Aug 2023. To the EU, imports increased by +1.4% y-o-y to 320.5 mln t. To India, volumes increased by +1.4% y-o-y to 157.4 mln t in JanAug 2024. To ASEAN, imports were up by +7.8% y-o-y to 176.6 mln t in Jan-Aug 2024. To S. Korea, imports increased by +0.6% y-o-y to 94.3 mln t.”

“The United Arab Emirates (UAE) is the third largest exporter of crude oil in the Middle East after Saudi Arabia and Iraq. It accounts for 6.7% of global seaborne crude oil exports. Total crude oil loadings from the UAE in the 12 months of 2023 declined by -1.3% y-o-y to 143.3 million tonnes, according to revised vessels tracking data from Refinitiv. This was a correction from a +15.5% y-o-y increase in 2022. Exports from the UAE have been fairly stable in recent years, remaining very robust in 2020 but taking a hit in 2021 due to Covid-related demand disruption in Asia”, the shipbroker said.

Meanwhile, “in Jan-Aug 2024, the UAE exported 98.7 mln tonnes of crude, up +2.5% y-o-y from 96.3 mln t in the same period of 2023. The vast majority of UAE oil exports are shipped from Abu Dhabi Emirate, west of the Strait of Hormuz – in JanDec 2023 it was 52.2 mln tonnes from Zirku Island, 29.0 mln tonnes from Das Island, 12.1 mln tonnes from Jebel Dhanna/Ruwais, and 0.9 mln t from Mubarraz Island. About 2.6 mln tonnes were shipped from the Dubai Emirate, mostly from the Fateh terminal. The remaining third of the UAE’s exports were shipped from the coast east of the Strait of Hormuz – 41.4 mln tonnes from Fujairah, and 4.5 mln tonnes from Khor Fakkan (part of Sharjah Emirate). The vast majority of UAE crude oil exports are loaded on VLCCs. In Jan-Dec 2023, 128.3 mln tonnes were shipped on VLCCs, 10.8 mln tonnes on Suezmaxes, 4.1 mln tonnes on Aframaxes. Trade patterns for UAE crude oil exports tend to be quite long haul, with the vast majority of volumes going to Asia. Mainland China accounted for 25.4% of UAE exports in Jan-Dec 2023. Exports to China increased by +3.0% y-o-y in Jan-Dec 2023 to 36.4 mln t. About 24.7% of shipments in 2023 were sent to Japan. Exports to Japan declined by -5.9% yo-y in Jan-Dec 2023 to 35.4 mln t. Another 24.5% of shipments in JanDec 2023 were sent to the ASEAN region. These increased by +13.2% y-o-y to 35.1 mln tonnes 8.6% of exports from the UAE in JanDec 2023 were to India. Shipments to India fell sharply by -44.5% y-o-y in Jan-Dec 2023 to 12.3 mln tonnes”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide