By Krystal Chia and Debjit Chakraborty (Bloomberg)
India’s devastating Covid-19 crisis is threatening operations at some of its biggest ports, raising concern the action could trigger shipping delays that reverberate through global supply chains.
Karaikal Port in southern India invoked force majeure until May 24 after operations were “severely affected” from the pandemic, according to a notice on its website. The terminal, which claims to be India’s biggest non-state port, handles coal, sugar and petroleum among other commodities. Gopalpur port in Odisha has also declared force majeure, according to IHS Markit.
The situation may echo global trade disruptions seen last year after virus restrictions slowed shipments into China. While India accounts for only fraction of the global trade that China does, any delays in offloading vessels and releasing them to their next destination could create supply chain bottlenecks.
Publishing date: May 10, 2021 • 5 days ago • 3 minute read • The Colonial Pipeline Co. tank farm in Pelham, Alabama, U.S. Fuel suppliers are growing increasingly nervous about the possibility of gasoline and diesel shortages across the eastern U.S. almost two days after a cyberattack knocked out a massive pipeline. Photo by Luke Sharrett/Bloomberg
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Crude oil climbed along with gasoline in New York after a cyberattack put the largest oil-products pipeline in the U.S. out of action.
West Texas Intermediate and Brent both rose as gasoline surged as much as 4.2 per cent to the highest since May 2018, before paring gains. Colonial Pipeline Co., a supplier of gasoline, diesel and jet fuel to the eastern U.S., was forced to halt operations late Friday, and said Sunday that it is still working toward a restart of the key artery that’s vital to energy flows across the country.
By Elizabeth Low and Alfred Cang (Bloomberg)
Shipyards in the Chinese coastal city of Zhoushan have banned vessels that called at or changed crews in India in the last three months, citing concerns over rising infections in the South Asian nation.
Restrictions on vessels from India as well as Bangladesh are now in place, prohibiting their arrival for maintenance and repair work, said a spokesperson from shipping and logistics firm Wilhelmsen Group.
The company was informed of the ban by a shipyard operating in the city, the spokesperson said. Details were confirmed by an official from Zhoushan Xinya Shipyard Co.
Oil price slide continues as India reports 300,000 new Covid cases a day worldoil.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from worldoil.com Daily Mail and Mail on Sunday newspapers.
Oil trades above $64 one year after it crashed below zero By Sharon Cho and Alex Longley on 4/20/2021
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SINGAPORE (Bloomberg) Oil jumped above $64 a barrel, a year to the day after futures for the U.S. benchmark collapsed below zero, with the worldâs most important commodity extending a powerful rally on bets for better demand.
West Texas Intermediate advanced 1.3%, adding to Mondayâs modest climb as the dollar weakened, while production in Libya fell below 1 million barrels a day amid a budget dispute.
Oilâs forward curve also suggests growing confidence particularly as U.S. demand recovers with the spread between WTIâs contracts for December this year and 2022 at the widest backwardation in about a month. Yet there are still reasons to be cautious, with India suffering a fresh wave of coronavirus infections and refiners there starting to curb processing.