Well, That Didn't Take Long -- June 11, 2020

Updates

June 12, 2020: Venezuela feeling the heat: Cuba.  

Original Post

From Reuters:

By Marianna Parraga and Jonathan Saul

MEXICO CITY/LONDON (Reuters) - Oil tankers that were sailing toward Venezuela have turned around and others have left the country's waters as the United States considers blacklisting [are we still allowed to use that word?] dozens of ships for transporting Venezuelan oil, according to shipping data and industry sources.

The threat of tighter sanctions is already disrupting the global shipping market. Chinese oil firms are considering whether to decline to charter any tanker that has visited Venezuela in the past year, no matter where the ship is now or for what voyage...

Washington is seeking to oust the socialist government of President Nicolas Maduro by choking the oil exports that provide its main source of income. The measures have contributed to a fall in Venezuelan oil exports to a 17-year low and deepened the country's economic crisis, but Maduro has held on - to the frustration of U.S. President Donald Trump's administration [oh, I doubt the administration is all that frustrated. LOL.].

The United States may add dozens more tankers to an existing blacklist [there's that word again].... That would make it more difficult for state firm PDVSA to deliver oil to refineries abroad. Exports dropped to about 452,000 barrels per day in May, the lowest since a national strike paralyzed the economy and hit exports between 2002 and 2003.

Venezuela's Foreign Minister Jorge Arreaza said on Twitter on Tuesday that Washington was attacking Venezuela's economy by blocking foreign revenue that could be used to import humanitarian goods, including food and medicine. [And his point would be?]

Malta-flagged tanker Seadancer, operated by Greek firm Thenamaris Ships Management and chartered by Thai refiner Tipco Asphalt, returned to Gibraltar after waiting in the Atlantic Ocean for a week....

Tipco Asphalt .... had dropped plans to use the vessel, which had previously been on course for waters off the coast of Venezuela at Amuay...

The Seadancer was scheduled to load 1 million barrels of Venezuela's Boscan crude for shipping to Malaysia's Kemaman refinery, operated by Tipco.

Another vessel operated by Thenamaris that had loaded crude in Venezuela in February, the Seahero, was blacklisted [again] by the U.S. Treasury Department last week.

A second Malta-flagged tanker expected in Venezuela, the Novo, made a U-turn this week in the Caribbean. [I would have loved to see that.] The vessel was scheduled to transport 1 million barrels of Hamaca crude in June to Singapore...

A loading window assigned for the Novo was canceled on June 6 after the chartering contract was suspended.... The tanker is operated by Dynacom Tankers Management Ltd, which also manages the Chios I, blacklisted [again] last week by the U.S. Treasury.

As word spread on the possibility of more Venezuela-related shipping sanctions to come, at least three more very large crude carriers (VLCCs) - Boston, Commodore and Respect - exited Venezuelan waters over the weekend to anchor in the Eastern Caribbean ...

Oil companies and merchants worldwide - not just in China - are becoming more wary of vessels that have recently transported Venezuelan oil ....

"Anything on the potential sanctions list will just become toxic," a source at a top oil trading company said. "No one will touch it until it's clear what the rules will be."

Broker Clarksons Platou Securities estimated that 77 tankers had called at Venezuela's main oil ports since December, more than 2% of the global fleet, and so were potentially at risk of sanctions.

Sanctions typically have a knock-on effect on the rest of the oil tanker market as energy companies and merchants scramble to swap blacklisted [again] vessels for others.

Much, much more at the link but I think I caught all the "blacklisted" references.

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Warren Buffett's Spreadsheet

For background, see this post. Scroll to bottom of that post.

	Airline	Shr Price: 3/31/2020	Dollars: 3/31/2020	Shares	Shr Price: June 11, 2020	Total: June 11, 2020
	DAL	28.53	675,000,000	23,659,306	27.02	639,274,448
	UAL	31.55	675,000,000	21,394,612	33.04	706,877,971
	AAL	12.19	675,000,000	55,373,257	14.30	791,837,572
	SWA	35.61	675,000,000	18,955,350	32.84	622,493,682
			2,700,000,000			2,760,483,673
	AAPL	254.29	2,700,000,000	10,617,799	340	3,610,051,516
						849,567,843
						2,760,483,673
						30.77605028%
March 24, 2020		224		10,617,799		2,378,386,881
June 11, 2020		340		10,617,799		3,610,051,516
						1,231,664,635