• 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 March 22

18:18 Global fuel market to remain relatively stable next week, expert says
18:03 Port of Klaipeda (Lithuania) handled 7.25 million tonnes of cargo in 2M'18, up 6% Y-o-Y
17:45 Transas to return all funds received under state support programme in 2016-18
17:12 Germany based firm offers AIS vessel management tracking systems preventing IUU fishing
16:51 Investments of Tuapse Sea Commercial Port in production development totaled RUB 343 million in 2017
16:30 Rolls-Royce completes the £1.3 million MAXCMAS research project
15:59 Nitrogen deposition in the oceans needs further study
15:30 Acta Marine newbuild successfully completed sea trials
14:30 APL starts new India Pakistan Express 2 Service
14:04 RF Transport Ministry defines procedure for approval of widespread minerals production at Russia’s IWWs
13:33 Open simulation platform launches with new partners
13:12 Volga Shipping Company named “Industry Leader” in “Cargo Shipping Company” nomination
12:58 Wärtsilä Seals & Bearings joins the Green Award scheme in support of clean environment
12:48 WMU Board of Governors meets in Turkey
12:25 MAN Diesel & Turbo partners with Hyundai to build new test-engine facility in Ulsan
12:00 Workshop on prevention and control of shipping and port air emissions being developed as part of GloMEEP-IAPH partnership
11:36 19 icebreaker escort operations performed in eastern part of Gulf of Finland during 24 hours on March 21-22
11:21 Russian Trade and Economic Development Council sign MoU to further strengthen commercial ties with Abu Dhabi Ports
11:14 Bunker prices are flat at the Far East ports of Russia (graph)
10:53 The Maritime Standard announces a special discount for the 2018 Awards
10:27 Brent Crude futures price up 0.01% to $69.48, Light Sweet Crude – up 0.09% to $65.23
10:05 Ukraine’s water transport carried 1,000 passengers in 2M’18, down 64.7%, Y-o-Y
09:41 Cargo transportation by Ukraine’s water transport grew by 41.2% to 0.3 million tonnes in 2M’18
09:19 Baltic Dry Index down to 1,117 points

2018 March 21

18:29 Wight Shipyard wins second order for fast ferry duo from Mexican ferry operator
18:16 Dorian LPG announces third Japanese financing
18:14 GasLog Partners LP announces acquisition of GasLog Gibraltar for $207 million and repayment of intercompany loan
18:04 ABP South Wales achieves new ISO 9001:2016 standard for bulk handling operations
17:42 Port of Gdansk to breathe new life into Dworzec Drzewny Quay
17:20 ABB wins contract to equip two next-generation shuttle tankers with future-proof solutions
17:13 Finnlines decides to exercise the options to lengthen two more ro-ro vessels
17:03 Throughput of Chinese ports up 4.7% to 1.45 billion tonnes in 2M’18
16:39 Pavel Bezmaternykh elected as Director of Eastern-Siberian Inland Navigation Company
16:18 Port of Gdansk overhauls its quays
16:00 Novikombank provides a $100 million loan to STLC
15:47 Huntington Ingalls names two vice presidents
15:21 Gulf Island Fabrication secures contracts for two specialized vessels
15:04 Seatrade Maritime Middle East 2018 to be held in Dubai on 29-31 October as part of UAE Maritime Week
14:42 LUKOIL’s profit in 2017 more than doubled YoY to RUB 418.8 bln
14:23 Wärtsilä and Crowley extend maintenance agreement for 11 articulated tug barges
13:56 IMO launches a video outlining how GMN initiative is uniting MTCCs into a global network
13:29 Ulstein built SOV Acta Auriga completes sea trials
13:11 Dubai will host MARACAD Maritime Innovation Awards on 3 October 2018
13:02 MARACAD 2018 will be held in Dubai on 2-3 October
12:30 17 icebreaker escort operations performed in eastern part of Gulf of Finland during 24 hours on March 20-21
12:09 Port of Quebec to cooperate with Port of Zeebrugge
11:47 Port of Immingham and partners hosted Driving Safety Forward forum
11:39 Vostochny Port JSC exported 5 million tonnes of coal YTD (photo)
10:50 Claimants and defendants in the case on allision of Delta Pioneer tanker with a pier at Primorsk port come to amicable agreement
10:31 Finnlines plans to lengthen two more Ro-Ro ships
10:15 Brent Crude futures price up 0.24% to $67.58, Light Sweet Crude – up 0.25% to $63.7
09:51 ABP's Port of Ayr took delivery of Liebherr crane
09:44 Bunker prices are going up at the Port of Saint-Petersburg, Russia (graph)
09:17 Baltic Dry Index down to 1,122 points
08:08 Scottish ports secure AEO status for Leith, Rosyth and Grangemouth
00:32 Ontario Government accepts Damen proposal for full ferry electrification

2018 March 20

18:20 Sirius Petroleum announces delivery of compact well head systems for Ororo-4 and Ororo-5
18:02 Leningrad Region Governor visits Vyborg Shipyard
17:56 PSA’s Bharat Mumbai Container Terminals enhances Nhava Sheva connectivity with first barge and train volumes
17:40 Van Oord posts results for 2017