• 2017 August 10 16:08

    MABUX: no firm trend on global bunker market next week

    The Bunker Review is contributed by Marine Bunker Exchange
     
    World fuel indexes demonstrated irregular changes during the week. Despite of that, prices are still holding on to near nine-week highs, supported by robust U.S. jobs da-ta and a slight fall in the U.S. drill rig count, even as rising output from OPEC capped global fuel market.

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO at the main world hubs) hasn’t had any firm trend and changed irregular in the period of Aug. 03 – Aug. 10:

    380 HSFO - up from 300.50 to 305.14 USD/MT      (+4.64)
    180 HSFO - up from 341.29 to 345.07 USD/MT      (+3.78)
    MGO        - down from 521.14 to 515.50  USD/MT (-5.64)

    OPEC production rose in June and July, putting the group’s output at its highest level so far this year. Iraq and the UAE have routinely overproduced, while Saudi Arabia has also boosted output to meet higher summer demand. Rising production from exempted countries Libya and Nigeria are overwhelming some of OPEC’s cuts. Total production from the cartel stands somewhere around 32.9 million barrels per day: almost 1 million bpd above its low point from earlier this year.

    Meantime, a joint OPEC - non-OPEC technical committee said on Aug.08, that it expects greater adherence to the pact to cut 1.8 million barrels per day in production. As a part of these efforts, Saudi Arabia promised to cut allocations to its customers worldwide in September by at least 520,000 barrels per day (bpd). The UAE, Iraq, Kazakhstan, and Malaysia also ex-pressed their full support for the existing agreement and their willingness to cooperate in order to achieve the goal of reaching full conformity to the deal.

    Iraqi oil exports topped 100 million barrels in July, but that’s still lower than the 3.93 million barrels per day rate Baghdad boasted back in May. Each month, the United States accepts a larger share of Iraq’s total exports in a bid to replace the high sulphur, heavy grades of crude that Saudi Arabia used to supply. Riyadh has made lowering its exports to the U.S. as a part of its strategy to lower crude inventories in the North American nation.

    In the beginning of this week Libya’s largest oil field Sharara was once again endangered by local fighting: a key control room at the facility was shut down. Several hours later output was restored, although there was no information if the field was producing at full capacity. These events show how sensitive is Libya’s oil sector at the moment. If ongoing problems do present there, it could put a significant dent in crude supplies - giving support to the global fuel prices.

    Meantime, as per statistics, Libya’s crude output and exports reached a fresh three-year high last month. The country shipped about 865,000 barrels a day of crude in July. That was a gain of 11 percent from June, which was already the highest since at least July 2014. The speed at which Libya can revive crude sales is rather critical for the fuel market at the moment: OPEC extended the cuts accord and Libya’s exemption from it through March 2018.

    The crisis in Venezuela continues. The U.S. imports about 800,000 bpd of Venezuelan heavy crude; cutting that off could potentially lead to full-on collapse in Venezuela and would likely also deepen the humanitarian crisis. Even limited new US-imposed sanctions or discussions of broader sanctions could be a catalyst for Venezuela defaulting on its upcoming debt payments.

    Due to these risks the Trump administration declined to sanction Venezuela’s oil sector and instead announced sanctions specifically targeting President Nicolas Maduro. At the same time, U.S. officials have said that the more severe punishment of oil-related sanctions are still on the table. So there is a big risk of default for Venezuela, which will impact global fuel market and push oil and fuel prices further up.
     
    U.S. shale is showing some signs of slowing down. There are a variety of reasons for this, including fear of another price downturn, more caution from oil companies themselves and slowdown in drilling services. U.S. drillers cut one oil rig in the week to Aug. 4, bringing the total count down to 765.

    However, after hedging largely stopped when WTI prices fell down in June, U.S. shale oil producers have started to hedge again. There is, however, a difference from the last hedging activity that took place after OPEC and Russia started their output cut deal. Now, some Companies are hedging at prices as low as US$45 a barrel. Shale producers are once again careful with their future profits, or at least the avoidance of losses.

    U.S. crude oil inventories continue to fall. The EIA just released last week’s data, show-ing another drawdown in inventories: by 6.5 million barrels to 475.4 million. U.S. crude oil inventories are now down more than 50 million barrels from the peak hit in March, with stocks back within the five-year range. This data added to optimism that the fundamentals were beginning to rebalance.

    The market looks rather steady at the moment hoping that OPEC+ cuts will likely translate into much lower production next year. Bunker prices may continue irregular changes next week: it is too early to talk about any firm upward trend.

     

     

     

     

     

     

    * 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)





2017 December 16

07:46 CMA CGM announces GRR from Asia to West Africa
06:51 Hapag-Lloyd announces new rates from Far East Westbound East Asia (including Japan) to Europe N.C. and Mediterranean
06:49 Hutchison Ports ECT Rotterdam to launch a pilot project with ‘fixed windows’ for inland vessels with large call sizes
06:45 Miriam Maes to succeed Rutger van Slobbe as Chair of the Port of Rotterdam Authority Advisory Board
06:37 DNV GL launches first class guideline for additive manufacturing

2017 December 15

23:12 Russia and USA filed first ever joint note to IMO on shipping in Bering Strait and Bering Sea
18:20 Onezhsky Shipyard launched self-propelled hopper Silnaya (photo)
18:06 DOF sells the vessel Skandi Marstein
17:06 The Port of Gdansk to expand the Oliwskie Quay
16:50 Russia’s State Duma approves ensuring the priority of ships flying RF flag in the segment of short-sea shipping
16:21 CMA CGM announces GRR from Asia to West Africa
15:34 Construction at NIBULON’s transshipment terminal in Mykolaiv is in full swing
14:45 Klaipėdos Nafta and Eesti Gaas begin cooperation in small-scale LNG distribution business
14:18 Arctic Economic Council welcomes Korea Shipowners’ Association as first sub-Arctic member
13:51 Baltic Workboats delivered 24m combat pollution and diving support vessel to Port of Klaipeda
13:29 WMU Executive Board 21st Session meets in London
12:56 Marine Recruiting Agency launches training project for Rosterminalugol
12:33 Skangas to source LNG at import terminal on Isle of Grain, UK
12:10 Ningbo Zhoushan Port volumes up 9.6% to 933 million tons in Jan - Nov 2017
11:58 Azerbaijan Caspian Shipping Company holds training with participation of crane ships crew
11:32 Africa maritime cooperation centre launched
11:09 Throughput of port Helsinki (Finland) up 14% to 13.1 mln t in 11M’17
10:44 Brent Crude futures price up 0.11% to $63.38, Light Sweet Crude – up 0.39% to $57.26
10:30 Rolls-Royce delivers first mobile MTU gas engines for Rederij Doeksen
10:11 Port of Klaipeda (Lithuania) handled 39.21 mln t of cargo in 11M’17, up 6.5% Y-o-Y
09:57 IAA PortNews offers video of virtual round-table meeting “Best practices of coal transshipment in Russian ports”
09:32 Baltic Dry Index down to 1,668 points
09:16 GTT signs new Global Services Agreement with Chevron Transport Corporation
08:25 Safe Bulkers announces acquisition of a Post-Panamax class dry-bulk vessel
07:05 Port of Los Angeles sets new record for highest monthly container volumes
06:04 CMA CGM announces new FAK rates from Asia to North Europe
05:04 The Foundation Det Norske Veritas assumes full ownership of DNV GL
04:43 Damen Shiprepair & Conversion wins contract for first European conversion of a dredger to dual-fuel LNG / MGO

2017 December 14

18:03 Bunker prices still maintain the potential for growth
18:02 Pacific centre launches on low-carbon shipping mission
17:37 Gazprom and Shell to handle oversized equipment for Baltic LNG at Commercial Sea Port of Ust-Luga (photo)
17:29 Key decisions from MEPC 71 related to implementing BWM Convention outlined at BWMTech London Conference
17:05 Ulstein and TTS shortlisted for OSJ Innovation Award
16:35 HHI Group receives support of LR in building an LNG-fuelled future
16:05 Aker Solutions secures subsea services agreement with Statoil
15:50 Commercial Sea Port of Kandalaksha handled 1.46 mln t of cargo in 11M’17, up 3 times Y-o-Y
15:36 Special issue of PortNews magazine published for Transport Week is available online
15:25 United Nations experts endorse RF initiative
15:07 BASF extend their fleet with another Konecranes barge handler
14:52 Infrastructure development will be one of priorities of Vladimir Putin’s new presidential term
14:45 CMA CGM launches new, innovative and complementary set of products
14:03 Wärtsilä and Mitsubishi Heavy Industries MME to collaborate in creating improved power and propulsion for ships
13:31 CLdN adds fourth weekly sailing between Gothenburg and Zeebrugge
13:01 GTT and Korean DSEC sign Technical Assistance and License Agreement
12:29 IMO encourages member countries to ratify and enforce the London Protocol to prohibit dumping at sea
12:00 Bahri welcomes Abdullah Aldubaikhi as new CEO
11:30 Bunker fuel is still in short supply at the Far East ports of Russia (graph)
11:01 Port of Oakland import volume ahead of last year’s pace
10:40 Outright prohibition of heavy fuel in the Arctic is not reasonable – maritime administrations of Russia and Finland
10:21 Brent Crude futures price up 0.58% to $62.8, Light Sweet Crude – up 0.18% to $56.7
10:14 ABS awarded contract by Cenac Marine Services to support compliance with US Coast Guard (USCG) Subchapter M requirements
09:59 Russia and Finland have similar positions on double control of fuel used by vessels
09:30 Amsterdam joins the ‘Premier League’ in the ethanol market
09:14 Baltic Dry Index down to 1,730 points
08:28 APL introduces mobile application for container tracking