• 2017 February 16 17:20

    OPEC cuts opens up arbitrage opportunities

    OPEC cuts took effect on January 1, 2017, with OPEC and non-OPEC producers agreeing to take a total of 1.8 mb/d off the market.

    The effort, which is expected to contribute to a rebalancing of oil markets and, as a result, push up the price of oil, has reached ~91% compliance on January volume, with a combined of ~1.6 mb/d taken offline from October volumes. The promise was to take production down to 32.5 mb/d on average over six months, and total output in January stood at 32.9 mb/d. Not all OPEC nations are included in cuts, with Iran, Libya, and Nigeria exempt.

    If OPEC cuts remain through the year, Atlantic basin supply will be the only growth market. Through the year, US production is expected to increase by ~400 kb/d, while the ramping up of Kashagan field is forecast to increase Black Sea exports by ~200 kb/d.

    Libyan / Nigerian supply also has the potential to increase by ~500 kb/d. Taking into account the expected supply deficit forecast for Asia in 2017, there is the potential for more Atlantic crude to move to the Pacific markets.

    US producers have ramped up drilling, which could result in more crude volumes available for export. This uptick could be positive for mid-sized tanker demand as Asian buyers look to take advantage of cheaper light barrels out of the Atlantic. The ramp is largely due to firming oil prices.

    OPEC cuts have put upside pressure on oil prices through the month of January, with Brent benchmarked crudes increased by $~7 / bbl, or 15%, since cuts were formalized on November 30, 2016. The Brent-Dubai spread has also narrowed as a result of cuts, which has opened arbitrage opportunities for Atlantic grades to Asia.




2018 January 16

18:21 Kommer Damen opens Damen Area Support China
18:08 DNV GL approves latest Kongsberg Digital Engine Room Simulators
17:49 Russian Railways: Loading of Russia’s export cargo bound for domestic ports up 6.4% Y-o-Y to 293.4 mln t in 2017
17:26 State stevedores of Ukraine handled 34.73 mln t of cargo in 2017, down 9.6% Y-o-Y
17:00 Andrey Lavrishchev’s report at Hydraulic Engineering Structures and Dredging Congress will focus on promising port projects
16:35 Installation of Belgian topside for offshore substation marks milestone in further construction of Merkur Offshore Wind Farm
16:04 Maersk Line announces increase in FAK rates from Northern Europe to Middle East and ISC and from Mediterranean to Far East
15:52 Jotun Paints congratulates North-Western Shipping Company on its 95th anniversary!
15:34 DNV GL launches new JDP to test biodegradable lubricants
15:04 TTS Group ASA secures contract with Cosco (Dalian) Shipyard for TTS cranes
14:45 New Delhi will host 5th edition of Oil Spill India Conference on 5-6 July 2018
14:29 Norwegian Control Systems delivers automation and bridge control systems to five Fjord1 ferries
14:10 Port Mechel Temryuk hanlded 1.5 mln t of cargo in 2017, up 6% Y-o-Y (photo)
13:37 Russia's crude exports in 2017 rise 7%, year-on-year, to 256.718 million tonnes
13:13 Turnover of DeloPorts’ terminals in 2017 up 28% Y-o-Y to 7.7 mln t
12:49 NSR cargo traffic in 2017 included 9.73 mln t carried by seagoing vessels and 797,190 t carried by river ships
12:28 Singapore will host 22nd HR & Crew Management Conference on 16-17 May, 2018
11:56 Three vessels escorted by icebreakers in eastern part of Gulf of Finland during 24 hours on Jan 15-16
11:34 Bunker prices are flat at the Far East ports of Russia (graph)
11:11 Coal exports from Russia rose 4% to 185.136 million tonnes in 2017
10:50 Oceanographic vessel Admiral Vladimirsky starts research in Indian Ocean
10:25 Brent Crude futures price down 0.4% to $69.98, Light Sweet Crude – up 0.31% to $64.5
10:07 CMA CGM announces FAK rates from ISC to North Europe and the Mediterranean
09:42 Cargo turnover at inland water ways of Azov-Don Basin down 4.9% to 9.796 mln t in 2017
09:19 Baltic Dry Index down to 1,264 points
09:07 Vroon’s VOS Stone mobilised with Ampelmann A400 gangway system
08:37 MMC First Process involved in the world’s first wellboat simulator
07:03 Crowley announces plans to build new 100,000-barrel Alaska Class ATB

2018 January 15

18:06 The largest hydraulic crane in the world at Vuosaari Harbour
17:29 Port of Tallinn offers Video Guides for car and truck drivers
17:06 Number of sea-going vessels entered the port of Rotterdam up to 29,646 in 2017
16:47 Construction begins on “Crystal Endeavor” at MV WERFTEN
16:43 Throughput of port Taganrog up 29.8% 3,067,100 t in 2017
16:35 QuantiServ introduces robotised laser technology that drastically increases the lifespan of 2-stroke engine pistons
16:16 Ice navigation restrictions at port Vysotsk (Leningrad Region) come into effect from January 29
15:51 Yevgeny Savkin appointed as Director General of Commercial Sea Port of Ust-Luga (photo)
15:27 Three vessels escorted by icebreakers in eastern part of Gulf of Finland during 24 hours on Jan 14-15
15:04 Port of Kiel throughput up 14.3% to 7,407.376 tons in 2017
14:30 Grain transshipment via Russian ports showed highest growth in 2017 among other cargoes, followed by coal and coke
14:02 Crossing of 278 vessel the Suez Canal of tonnage 16.9 million ton during 6 days
13:48 Dry cargo carrier of Project 964, Kalevala, converted for grain transportation (photo)
13:23 Average wholesale prices for М-100 HFO down to RUB 13,037 in RF spot market
13:02 MOL announces full acquisition and name change of Azalea Maritime B.V.
12:41 Egyptian Government targets 5.7 milliard dollars Suez Canal revenues by end of fiscal year
12:05 Adani inaugurates two Royal IHC Beagle TSHDs
11:57 ZIM appoints a Chief Digital Officer
11:39 Change in communications leadership at Hamburg Süd
11:00 Ships of RF Navy's Baltic Fleet return from distant cruise
10:23 Zelenodolsk A. Gorky Shipyard lays down yet another 22160-series patrol boat of Project 22160 (photo)
09:57 Brent Crude futures price up 0.03% to $69.89, Light Sweet Crude – up 0.28% to $64.48
09:15 Baltic Dry Index down to 1,279 points

2018 January 14

12:26 Hapag-Lloyd announces GRI from East Asia to Caribbean, East Coast Central America, Panama, Mexico Gulf & Progreso
12:24 Hapag-Lloyd implements GRI from East Asia to USA and Canada
12:22 Wallenius Wilhelmsen Logistics receives a Biosecurity Certificate of Commendation from Australian government agency
12:19 Luka Koper volumes up 6 % in 2017

2018 January 13

20:16 Port of Long Beach releases rail facility study
20:15 Royal IHC launches the multi-purpose 5,450m3 trailing suction hopper dredger
20:12 Record fall in container volumes at the Port of Gothenburg
20:10 New bulk cargo terminal MOU announced in Poti, Georgia

2018 January 12

18:26 Latest expansion begins at Port of Felixstowe