• 2017 November 23 16:03

    Bunker prices may turn into irregular phase in the lead-up to OPEC’s meeting

    The Bunker Review is contributed by Marine Bunker Exchange

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO at the main world hubs) slightly increased in the period of Nov. 16 - Nov. 23:

    380 HSFO - up from 355.79 to 360.50 USD/MT (+4.71)
    180 HSFO - up from 398.07 to 401.79 USD/MT (+3.72)
    MGO         -up from 585.14 to 590.00 USD/MT  (+4.86)


    An agreement by OPEC and other producers such as Russia to limit oil production has supported prices in recent months, with the deal expected to be extended at the group's next meeting on Nov. 30.

    But fears of hesitation on Russia's part weighed on prices in the beginning of the week.  Reports emerged that Russia is considering a delay on the decision to extend the cut. That’s after Energy Minister Alexander Novak hinted more than once that from Moscow’s perspective, this decision is far from urgent (taking into consideration that RF budget is based on Brent at US$40). Russian oil firms are arguing that their production restrictions are only benefiting others while Russian companies have to cut back from new projects in which they have heavily invested. As a result, on Nov.21 Russian oil producers met with the energy ministry to discuss only a six-month extension, as opposed to the nine months originally offered by President Vladimir Putin. Besides, to some extent, lower oil prices could be more beneficial for the Russian economy. Russia prefers to keep the ruble cheaper as this stimulates exports, curbs imports, and boosts competitiveness. Traditionally, the Russian currency has followed Brent’s moves closely. If, however, Brent goes high enough, there may be a spike in speculative interest in rubles, which will cause the currency to rise, too.

    At the same time, top crude exporter Saudi Arabia is lobbying oil ministers to agree next week on a nine-month extension to OPEC-led supply cuts. Energy minister Khalid al-Falih said, that targets to reduce global oil surplus would not be reached to March 2018. This also suggests, that oil cut agreement needs to be extended.

    Venezuela struggles to pump enough crude oil to meet the country’s OPEC output target. Meantime, country’s oil output hit a 28-year low in October as state-owned PDVSA tries to find the funds to drill wells, maintain oilfields and keep pipelines and ports working. Venezuela's oil production is to fall by at least 250,000 bpd in 2017, as U.S. sanctions and a lack of capital obstruct operations. Some OPEC members expect the fall to accelerate in 2018, reaching at least 300,000 bpd. At a recent internal OPEC meeting, Venezuelan officials were asked to give a clearer picture of the country’s declining output. Saudi Arabia would not increase production in order to compensate for falling Venezuelan output. However, rising heavy oil production from Iraq, Canada and Brazil are offsetting the losses. As en example, Iraq has increased shipments of crude and condensate to India by 80,000 bpd this year as Venezuelan deliveries fell by 84,000 bpd. The second largest OPEC producer also has exported 201,000 bpd more oil to the United States this year through October as Venezuelan shipments dropped about 90,000 bpd.

    The bunker indexes rose due to drop in crude supplies from Canada to the United States. TransCanada Corp's 590,000 (bpd) Keystone pipeline, which links Alberta’s oil sands to U.S. refineries, remained shut after a 5,000-barrel leak in South Dakota last week. It seems, that the shut-in would support the prices due to fewer barrels going into Cushing, Oklahoma, the delivery point of the WTI contract.  TransCanada Corp said it will cut deliveries by at least 85 percent Keystone crude pipeline through to the end of November.

    U.S. crude oil inventories fell by 1.9 million barrels - 457.1 million barrels last week. U.S. crude oil imports averaged 7.9 million barrels per day last week, down by 25,000 barrels per day from the previous week. At the same time U.S. crude oil production was up last week by 13,000 bpd to 9.648 million bpd. The number of active oil rigs increased this week by 9. This happens as rising prices stimulate investments into oil production in the U.S. and it levels OPEC efforts to decrease oil glut.

    OPEC’s meeting on November 30 and the deal extension expected as the single most important driver for fuel prices, as the effect of tensions in the Middle East begins to subside in the absence of any escalation. We expect bunker prices may have high volatility and change irregular next week. Further trend will be formed after OPEC’s meeting on November 30.



    * 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)




2018 October 21

08:54 20,000 TEU COSCO SHIPPING Sagittarius named in Shanghai
08:50 CFO Paul Smits leaves the Port of Rotterdam Authority
07:52 COSCO SHIPPING starts shipment of Toyota exhibits

2018 October 20

08:47 Boskalis, Van Hattum en Blankevoort and Mobilis construct deep-sea quay for the new HES Hartel Tank Terminal at Maasvlakte
08:10 Navios Partners announce filing of F - 1 for direct listing of Navios Containers
08:06 Maersk Line increases FAK rates for Northern Europe to Middle East and ISC trade
08:04 U.S. Navy contracts Austal to order materials for EPF 13
07:44 EU Commission launches the European Network of U-space Demonstrators

2018 October 19

18:42 ABN AMRO, Samsung SDS and the Port of Rotterdam Authority launch container logistics blockchain pilot
18:07 Stena Line's battery hybrid vessel completes its first month of operation
17:56 ABN AMRO, Samsung SDS and Port of Rotterdam Authority launch container logistics blockchain pilot
17:35 Port of Gdansk participated in the CILF 2018 fair in China
17:11 Gdansk pays a visit to Singapore
16:57 Testbed established for Internet of Ships Open Platform
16:48 Finland’s Water Transport Act aims to improve safety and increases preparedness for the future
16:26 World’s largest LNG bunker supply vessel “Kairos” started its voyage to Europe
16:04 KN will motivate its employees with the company's shares
15:42 New Falck training centre on the Maasvlakte officially openes
15:20 Seimas members visiting Klaipėda discussed benefits provided by LNG terminal
14:59 Ukraine plans dredging of 16.33 million cbm of material in 2019
14:37 UN agencies delivering on maritime security
14:15 Hapag-Lloyd starts new Red Sea service
14:00 Atomflot: shipments from Arctic LNG and Yamal LNG to be assisted by diesel and gas powered icebreakers
13:31 MOL's newbuilt LNG carrier "MARVEL EAGLE" to transport LNG from Cameron project in U.S.
13:11 NIBULON Shipbuilding and Repair Yard launches POSS-115 Project tug
13:05 BigLift Barentsz sails Northern Sea route for Pioneering Spirit
12:48 Glavgosexpertiza approves reconstruction of KSK grain terminal to increase its capacity to 4 million tonnes
12:22 Q&A with ImageSat International released ahead of SMi’s 4th annual Maritime Reconnaissance and Surveillance Technology conference
12:05 FESCO wins tender for supplying Indian Research Stations in Antarctica in 2019
11:43 Competition for designing and construction of LNG-powered icebreaker to be announced in late 2018 - early 2019
11:20 North Sea Giant turns to The Switch EBL technology
10:54 NOVATEK to place four FLNG facilities on the Northern Sea Route
10:31 RF Navy’s major amphibious ship Ivan Gren enters North Sea
10:07 Port of Vancouver closes 2018 cruise season
09:56 Brent Crude futures price up 0.4% to $79.61, Light Sweet Crude – up 0.35% to $68.89
09:38 Tackling maritime emissions - IMO rolls out ship and port toolkits
09:29 Expert forecasts more favorable ice situation on Northern Sea Route for 30 years ahead
09:15 Baltic Dry Index is up to 1,565 points
09:07 Hapag-Lloyd, CMA-CGM and COSCO enhance GEM service - covering Mediterranean with the Middle East / ISC
08:37 Samskip launches Netherlands-Italy multimodal rail service
08:07 SEA\LNG submits open comment on the draft supplemental environmental impact statement for Puget Sound LNG facility
07:20 Van Oord awarded offshore contract for the West White Rose Project

2018 October 18

18:03 VSDV opens new crossdock location in the port of Amsterdam
17:33 The first vessel in Klaveness Combination Carriers next generation of combination carriers named at New Yangzi Shipyard in China
17:17 Cargo transportation via Northern Sea Route can reach 17 million tonnes in 2018
17:03 Savannah container trade up 12 percent in September 2018
16:55 PGRK: sales strategy of Pavlovskoye deposit project is focused on foreign markets
16:33 SITC Logistics Group signs strategic cooperation agreement with Chengdu Port Investment Group and Guangzhou Port Logistics Group
16:03 NYK and Horiba to develop a new sulfur-in-oil analyzer for ships
15:34 Thames freight volume rises by 40% as Thames Vision strategy starts to bear fruit
15:33 Port of Rotterdam Authority and research institute TNO present results of the study at IMO meeting
15:31 Dublin Port volumes grow by 4.7% in first nine months. By year end, 36% growth in just six years
15:03 Chinese Lingang group invests 85 million euros in Zeebrugge inner port
14:47 Practical aspects of LNG bunkering to be discussed at the dedicated conference in Moscow on October 24
14:33 Nouryon, Tata Steel, and Port of Amsterdam partner to develop the largest green hydrogen cluster in Europe
14:24 Bunker prices may change irregular next week amid rising volatility on global fuel market, expert says
14:11 Tallink and Rauma marine constructions sign letter of intent for the construction of new shuttle ferry
14:02 VesselMan and DNV GL team up to offer optimized solution for dry-docking management
13:30 Project Forward paves the way for meeting IMO’s reduction on CO2 emissions
13:14 Equinor’s share saving plan allocates shares