• 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)




2017 December 18

11:23 Sirius Shipping took over the management for the vessel M/T Donia
10:59 The Szczecin and Świnoujście Seaports Authority expanded its land by nearly 10 ha in the port of Świnoujście
10:30 Brent Crude futures price up 0.24% to $63.38, Light Sweet Crude – up 0.16% to $57.42
10:04 Russian Navy oceanographic ship Yantar pays business visit to Buenos Aires
09:42 Admiral Vladimirsky, research ship of RF Navy’s Baltic Fleet, lays it course to Indian Ocean
09:20 Baltic Dry Index down to 1,619 points
09:08 Egypt officially starts operations of the Mediterranean’s largest gas field
08:11 DNV GL introduces first classification guideline for 3D printing

2017 December 17

08:08 APL enhances India Pakistan-Mediterranean Express Service with new port calls
07:06 Data on the LNG terminal in Świnoujście published on the ALSI platform
07:04 HELCOM and BONUS tighten collaboration for the good of environmental protection action in the Baltic Sea
06:57 Viking Sun sets sail on first world cruise from Miami to London

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