• 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 August 23

18:36 U-Ming Marine Transport has become the constituent of the FTSE4Good Index
18:27 HMM’s cargo processing at Busan Port hit new record
18:06 IHC America wins a new contract with Weeks Marine
17:54 Steel cutting ceremony of Sirius Shipping’s newbuilding held at AVIC Dingheng shipyard in China
17:36 UK operator SMS Towage buys new tug from Sanmar Shipyards
17:19 Indian Navy commissions second landing craft utility ship MK-IV 'IN LCU L52'
17:06 TOTE Maritime prepares for next phase of LNG operations
17:00 Northwest Seaport Alliance July container volumes show 5 percent increase year to date
16:58 Ukraine’s water transport carried 0.3 mln passengers in Jan-Jul'17, up 37.6%, Y-o-Y
16:57 Panama Canal welcomes largest capacity container vessel to-date through expanded locks
16:55 Konecranes signs contract with Shenzhen Energy Group Environmental Protection Company for thirteen fully automated WtE cranes
16:42 Port of Virginia orders four new cranes
16:36 Cargo transportation by Ukraine’s water transport down 2.1% to 3 mln t in 7M’17
16:17 Van Oord awarded contract to construct Deutsche Bucht offshore wind farm
16:13 CMA CGM announces FAK rates from Asia to North Europe
16:00 Rustam Khalitov appointed as Director General of KNRG Upravleniye, management company of Caspian Energy Group (photo)
15:40 7th Fleet Commander relieved due to loss of confidence
15:14 Russia’s General Board of State Expert Review approved stages of Zvezda Shipyard project (Far East)
14:59 Russia develops digital platform for testing unmanned ship navigation
14:18 CMA CGM invests in the NYSHEX market and accelerates its digital transformation
13:15 KFTC announces decision concerning the violation of south Korean antitrust law by car carriers
12:43 Dmitry Medvedev signed amendments into regulations on delivery of caught and processed aquatic bioresources (document)
12:12 SaR operations continue in Singapore to find missing sailors of USS John McCain
12:00 LNG carrier Christophe de Margerie passed the Northern Sea Route for 6.5 days without assistance of icebreakers (photo)
11:23 MPA and IBM complete pilot trial on new cognitive-based system to improve maritime and port operations
11:04 Sovershenny, newest corvette of RF Navy's Pacific Fleet is open for visitors of the Army 2017 Forum
10:46 USC congratulates UCL Holding on the tenth anniversary!
10:25 Russian Chamber of Shipping congratulates UCL Holding on the first round number anniversary – 10 years in the market!
10:02 Brent Crude futures price down 0.35% to $51.69, Light Sweet Crude – down 0.33% to $47.67
09:44 TOTE Maritime’s LNG supplier gets the green light for LNG facility and barge-to-ship bunkering
09:33 Bunker prices go up at the port of Saint-Petersburg, Russia (graph)
09:14 Baltic Dry Index down to 1,249 points

2017 August 22

17:57 Gazprom Export LLC congratulates UCL Holding with a decade of fruitful activities!
17:28 Gazprom Neft resumes regular bunkering of vessels with marine lubricants at the port of Ust-Luga (photo)
17:05 OOCL celebrated the christening of hull of OOCL Germany
16:36 Reconstruction of Beringovsky Port will let boost coal exports to 2 mln t per year – Beringpromugol
16:05 MAN Diesel & Turbo and AKA win order from federal Russian agency
15:50 Cuxport handles crane parts weighing several tonnes for the NYK Bulk & Projects shipping company
15:34 SGS Group opts for Aqua-tools ballast water test kits
15:04 CMA CGM announces GRI from Asia to Panama, the Caribbean and Cuba on PEX2 service
14:35 First of ten Stan Tug 1907 ICE completed by Great Lakes Shipyard for The Great Lakes Towing Company
14:25 Baker McKenzie and COBALT selected the legal advisers of the IPO of the Port of Tallinn
14:02 ABP’s Scottish ports raise funds for RNLI and Fisherman’s Mission
13:38 IMO and Liberia looking to enhance maritime security
13:14 Bunker prices are still high at the Far East ports of Russia (graph)
12:47 Dredging at two berths of Vladivostok will let the port accommodate large cruise liners from 2018 (photo)
12:23 Sea Port of Saint-Petersburg has increased financing of labour safety actions by 23%
12:15 Port of Los Angeles and GE Transportation build on early success of pilot with commerical agreements worth up to $12 million
11:59 Maritime security code under review
11:36 ABB’s Onboard DC Grid enables integration of energy storage on specialized hybrid wind farm vessel
11:24 Stealth Maritime Corp. comments on collision of Navy vessel and its Liberia flagged tanker
11:12 FESCO launches its first transit train between China and Europe via Mongolia
10:44 About RUB 14 bln spent for construction of Vykhodnoy-Lavna line under MTH project – Murmansk Region Governor (photo)
10:20 Brent Crude futures price up 0.58% to $51.97, Light Sweet Crude – up 0.59% to $47.81
09:57 Association of Commercial Sea Ports congratulates the management and the team of UCL Holding on the group’s 10th anniversary!
09:35 Coal exports via Rosterminalugol terminal hit 15 mln t milestone this year (photo)
09:14 Baltic Dry Index up to 1,099 points

2017 August 21

18:06 Bahri completes registration of ASLAF under Saudi national flag
17:51 BC Ferries releases first quarter results
17:28 Khersones sailing ship takes part in celebrations marking Yalta City Day