• 2016 May 12 16:04

    Bunker market: irregular changes of bunker prices will continue next week, expert says

    The Bunker Review is contributed by Marine Bunker Exchange

    World fuel market has not had any firm trend during the week and prices have changed irregular. Stockpiles of crude oil and refined products around the world are running at record levels and still increasing, albeit more slowly than a year earlier.

    Meanwhile, there are the signs that fundamentals are clearly improving on the supply and demand sides of the market. Global oil demand grew by 1.8 million bpd last year, the fastest for more than a decade, and is predicted to grow by another 1.2 million bpd in 2016. Global oil supply from outside the Persian Gulf and Russia is now falling rapidly and expected to decline at the fastest rate for more than 25 years in 2016.

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO at the main world hubs) has not had any firm direction and showed only slight irregular changes in the period of May 05 – May 12:
    380 HSFO - up from 195,43 to 205,00 USD/MT    (+9,57)
    180 HSFO - up from 237,57 to 247.21 USD/MT     (+9,64)
    MGO         - up from 433,71 to 450.71 USD/MT     (+17,00)

    A fire in Alberta, Canada was one of the supportive factors for fuel indexes this week. Oil companies have been forced to evacuate workers and shut in production. At the moment oil sands production is expected to gradually increase. Oil companies around the Canadian energy hub of Fort McMurray began to restart operations May 10 after a week-long shutdown. The fires have decreased daily crude production by around 1.5 million barrels, leading to a significant tightening of global markets.

    In Russia largest commodity exchange is courting international oil traders to join its emerging futures market. The goal is to increase revenue from Urals crude by disconnecting the price-setting mechanism from the world’s most-used Brent oil benchmark. Another aim is to move away from quoting petroleum in U.S. dollars. Having its own futures market would improve Russian oil price discovery as well as help domestic companies generate extra revenue from trading.

    Data by the U.S. Energy Information Administration (EIA) shows that U.S. crude oil output has fallen by 410,000 bpd this year, and by 800,000 bpd since mid-2015. The drop in North American output, combined with disruptions in Latin America, were contributing to a fast erosion of global oversupply that peaked 2 million bpd last year. At the same time U.S. shale producers may take advantage of the rising price of WTI by tapping their drilled but uncompleted wells. There are 3,209 wells spud between Jan. 1, 2014 and Jan. 1, 2016 that remain uncompleted as of today.

    Commercial U.S. crude stockpiles are still on top levels since October 1929. Supplies at Cushing, Oklahoma, the delivery point for WTI and the nation’s biggest oil-storage hub, are near a record. Refiners have already produced large volumes of gasoline and diesel, threatening to overwhelm demand despite the upcoming peak summer U.S. driving season. There are some concerns that refiners may lower their output and cut orders for new crude feedstock, putting downward pressure on prices.

    Iran said it’s almost ready to talk with other OPEC members about limiting oil pro-duction as the country’s exports recover to levels reached before international sanc-tions crippled crude sales. The country last month refused to join other nations in a push to freeze output.   Rising production and exports from Iran is bearish for fuel prices as output returns faster than expected.  Crude and condensate output of about 4.2 million barrels a day is 800,000 barrels more than the country pumped in November and exceeds consensus estimates for the amount Iran would actually add to the market.

    Fuel indexes have been also supported by the news that Saudi Arabia replaced its oil minister Ali al-Naimi over the weekend with the chairman of state energy company Saudi Arabian Oil Co. Khalid Al-Falih. Al-Falih is considered to be an ally of Prince Mohammed bin Salman, who has backed the nation’s policy of prioritizing market share over prices and insisted any output freeze must involve Iran.

    Almost at the same time Saudi Arabia declared plans of significant growth in output in 2016 and further international expansion. The kingdom is going to boost capacity at the Shaybah oil field by 33 percent to 1 million barrels a day in the next couple of weeks and will double natural gas production over the next decade. Saudi Arabia is seeking to reduce its reliance on oil sales amid lower prices for its most lucrative export. As a part of that effort is the plan to sell stock in Saudi Aramco for the first time.

    Nigeria is suffering a worsening bout of oil disruption that has pushed production to the lowest in 20 years: attacks against facilities increase in number. In February, Royal Dutch Shell Plc declared force majeure after an attack on a pipeline feeding the Forcados terminal, which typically exports about 200,000 barrels a day. The forecasts predict Nigeria could lose an estimated $1 billion in revenue by May, when it expects repairs on Forcados to be completed. The terminal may not restart until June.

    China’s oil output is expected to fall 6% this year: average 4.05 million barrels a day, down about 253,000 barrels a day from 2015. Meantime, China’s crude imports climbed to a record 7.34 million barrels a day in the first quarter, up 13 percent from the same period last year, as higher refining margin encouraged oil processors to boost purchases.

    In general the situation on the world fuel market is still unclear: no consensus on whether prices move up or down. We expect irregular changes of bunker prices will continue next week.








    MGO LS
    All prices stated in USD / Mton
    All time high Brent = $147.50 (July 11, 2008)
    All time high Light crude (WTI) = $147.27 (July 11, 2008)

2019 December 13

11:30 Abu Dhabi Ports announces AED 4Bn expansion projects at Khalifa Port on its 7th Anniversary
11:27 Damen signs contract with Cotecmar for DTC hydrographic research vessel
11:12 WMU and EMSA cooperate on capacity building and research
11:03 SAL Heavy Lift becomes world’s first to equip vessels with new hydrogen / methanol injection technology
10:48 Murmansk Sea Fishing Port handled 245,000 tonnes of cargo in 11M’2019, down 20.7% Y-o-Y
10:34 Overseas Shipholding Group and American Shipping Company jointly announce extension of tanker charters
10:24 WMU President reports to the IMO Assembly
09:59 Kawasaki Heavy Industries launches the world's first liquefied hydrogen carrier
09:43 MABUX: Bunker market this morning, December 13
09:29 Brent Crude futures price is up 0.65% to $64.62, Light Sweet Crude – up 0.52% to $59.49
09:13 Baltic Dry Index is down to 1,388 points

2019 December 12

18:36 EBRD finances Tekirdag port on Turkey’s Sea of Marmara
18:05 Dutch Drone Delta established with Port of Rotterdam Authority support
17:51 Port of Southampton continues infrastructure investment with £3m crane
17:30 Baltic Workboats shipyard delivers 19 WP Oilrec workboat
17:05 The European Federation of Inland Ports welcomes the Green Deal for Europe
16:46 MOL orders 2 next-generation 'EeneX' coal carriers
16:43 Throughput of port Kaliningrad in Jan-Nov’2019 fell by 21% Y-o-Y to 10.20 million tonnes
16:26 Klaipėda LNG terminal welcomed three large and four small LNG vessels in November
16:05 Air quality sensor in the Port of Rotterdam checks sulphur emissions from shipping
15:57 Throughput of port Vyborg in Jan-Nov’2019 fell by 35% Y-o-Y to 1.12 million tonnes
15:34 Alewijnse wins electrical contracts for two additional Combi Freighters at Damen Yichang Shipyard
15:00 Throughput of port Vysotsk in Jan-Nov'2019 climbed by 6% Y-o-Y to 17.90 million tonnes
14:36 Krasnoye Sormovo shipyard launches dry cargo carrier Pola Anastasia of Project RSD59
14:12 CMA CGM announces FAK Reefer Rates from North Europe to Asia and Middle East
13:53 Bunker market sees mixed price movements at the Far East ports of Russia (graph)
13:31 NLNG signs sales deal with Vitol SA
13:12 Austal USA delivers USNS Puerto Rico to U.S. NAVY
12:49 Throughput of port Primorsk in Jan-Nov’2019 grew by 16% Y-o-Y to 56.25 million tonnes
12:24 Lead nuclear-powered icebreaker of Project 22220, Arktika, left for sea trials
12:00 ABS publishes Fuel Cell Guidance to support industry decarbonization objectives
11:38 Port of Ust-Luga handled 95.31 million tonnes in 11M’18, up 6% Y-o-Y
11:13 Throughput of Port St. Petersburg in 11M'2019 grew by 2% to 55.01 million tonnes
11:10 Verifavia Shipping undertakes IHM services for 29 Attica Group vessels
10:56 Wärtsilä to divest its ELAC Nautik business
10:49 Throughput of port Riga (Latvia) in 11M’2019 fell by 9.4% Y-o-Y to 30 million tonnes
10:26 TransContainer dispatched test train from Korea to Poland
10:05 MABUX: Bunker market this morning, Dec 12
09:47 Brent Crude futures price is up 0.41% to $63.98, Light Sweet Crude – up 0.14% to $58.84
09:31 Baltic Dry Index is down to 1,460 points
09:08 Viking Line’s new vessel to be equipped with Climeon Heat Power System
08:12 Nautilus Labs becomes new Inmarsat fleet data application provider

2019 December 11

18:33 Kongsberg and the Norwegian Society for Sea Rescue join forces to develop new SAR solutions
18:03 DOF Subsea secures integrated FSV contract in Africa
17:50 NCSP Group's consolidated cargo turnover for 10 months of 2019 totaled 121.2 million tons
17:32 Equinor completes the acquisition of a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia
17:25 LNG in the era of decarbonization: the 6th International LNG Congress 2020 brings up environmental questions
17:13 Port Houston sets new records at container terminals in November 2019
16:54 World's first liquefied hydrogen carrier SUISO FRONTIER launches building an international hydrogen energy supply chain aimed at carbon-free society
16:32 Seaspan Shipyards delivers its second offshore fisheries science vessel to the Canadian Coast Guard
16:13 Port of Virginia сargo volume up nearly 4% in November 2019
15:49 Throughput of port Taganrog in 11M'2019 fell by 7% to 2.59 million tonnes
15:32 Aker BP first ever to use new well stimulation method offshore
15:12 Port of Savannah container volumes up 5.4 percent in November 2019
14:51 Sovcomflot named Company of the Year at the 2019 Lloyd’s List Europe Awards
14:32 Aker Solutions secures contract to support the development of BP’s Cypre project, offshore Trinidad and Tobago
14:12 Port of Oakland export volume up 5.8 percent in November 2019
13:50 Bunker prices are flat at the port of Novorossiysk, Russia (graph)
13:32 Belships enters into two letters of intent for the acquisition of two Ultramax bulk carriers
13:11 Port of Los Angeles moves 728,918 TEUs in November 2019