Oil spill outside Qingdao port after ship collision

Oil spill outside Qingdao port after ship collision

A vessel collision outside the city of Qingdao is the cause of an oil spill in the Yellow Sea, allegedly caused by the heavy fog of the morning.

A tanker carrying around 1 million barrels of bitumen mix was involved in a collision near the Chinese port city of Qingdao.

Spilling oil into the Yellow Sea, Chinese maritime officials and tanker representatives said on Tuesday (Apr 27).

The collision involving the anchored Liberia-flagged tanker A Symphony and the bulk vessel Sea Justice took place at 8.50am local time.

 A Symphony’s manager Goodwood Ship Management said in an e-mail.

“The force of the impact on the forward port side caused a breach in cargo tanks and ballast tanks, with a quantity of oil lost into the ocean,” Goodwood said, adding all of the crew had been accounted for and there were no injuries.

It was not immediately possible to contact the owner of the Sea Justice.

“The oil spill came after a clash between two vessels,” an official for China’s Shandong Maritime Safety Administration told, confirming that no one was injured.

Heavy fog, which has hampered navigation off the Qingdao coast since Monday, led to poor visibility at the time of the collision, Goodwood said.

“Immediately after the violent striking occurred, the master initiated emergency procedures onboard.

Mobilizing the vessel’s oil spill response team and initiating an internal transfer to limit the loss of product,” Goodwood said in an emailed statement.

It said the incident was reported to local authorities and steps to contain and clean up the oil spill had begun.

Although the port’s closure because of “zero visibility” was hindering the efforts.

The Shandong Maritime Safety Administration has instructed other ships in the area to stay at least 10 nautical miles from the A Symphony.

Source: The Star (Malaysia)

OPEC announces oil hits highest price in a year

OPEC announces oil hits highest price in a year

Oil hit its highest in a year on Friday, closing in on US$60 a barrel, supported by economic revival hopes and supply curbs by producer group OPEC and its allies.

New orders for US-made goods rose more than expected in December, pointing to continued strength in manufacturing.

Brent crude was up 85 cents, or 1.4 percent, at US$59.69 by 1438 GMT after hitting its highest since Feb 20 last year at US$59.79. US crude was up US$1.02, or 1.8 percent, at US$57.25, after reaching US$57.28, its highest since Jan 22 last year.

“The conditions still remain supportive for oil markets,” said Jeffrey Halley, an analyst at brokerage OANDA. “Oil should find plenty of willing buyers on any material dip.”

Brent is on track to rise more than 6 percent this week. The last time it traded at US$60 a barrel, the pandemic had yet to take hold, economies were open and people were free to travel, meaning demand for gasoline, diesel, and jet fuel were much higher.

The rollout of COVID-19 vaccines, however, is fueling hopes of lockdowns being eased, boosting fuel demand. But even demand optimists such as OPEC do not expect oil consumption to return to pre-pandemic levels until 2022.

Oil also gained support from supply curbs by producers. OPEC and its allies, collectively known as OPEC+, stuck to their supply tightening policy at a meeting on Wednesday. Record OPEC+ cuts have helped to lift prices from historic lows last year.

“OPEC+ discipline has been a real positive,” said Michael McCarthy, chief market strategist at CMC Markets.

Further boosting the market, a weekly supply report showed a drop in US crude inventories to their lowest since March, suggesting that output cuts by OPEC+ producers are having the desired effect.

Source: Channel News Asia / Reuters.