• 2017 December 14 18:03

    Bunker prices still maintain the potential for growth

    The Bunker Review is contributed by Marine Bunker Exchange

    After sinking for much a week ago, world oil indexes currently turned into the phase of irregu-lar changes. Market attributed the rise to tensions in the Middle East after the Trump administration announced the U.S. would move its embassy in Israel to Jerusalem, a move that was met with widespread protest in the region. Meanwhile, data from China showed strong crude import data for November, and the shutdown of the Forties North Sea pipeline knocked out significant supply from a market.

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO at the main world hubs) demonstrated slight upward trend in the period of Dec.07 – Dec.14:
        
    380 HSFO - up from 345.86 to 348,79 USD/MT (+2.93)
    180 HSFO - up from 387,21 to 388,79 USD/MT (+1.58)
    MGO         - up from 576.57 to 588.14  USD/MT (+11.57)


    OPEC plans to announce in June an exit strategy from the cuts, though it is not mean the pact would end by then. As per Kuwait's oil minister Essam al-Marzouq, OPEC and its allies will consider before June whether to end supply cuts earlier.

    On the global supply side OPEC’s crude oil production fell by 133,500 bpd from October to stand at 32.448 million bpd in November: the lowest production the cartel has reported in six months. The largest increase among the members came from Nigeria, whose production in November went up by 95,800 bpd from October to 1.790 million bpd. Angola, Saudi Arabia, Venezuela, and the UAE saw the largest declines in production.

    Saudi Arabia is going to cut its crude oil exports to Asia by more than 100,000 bpd in January compared to December, while keeping its shipments to Europe and the U.S. at the De-cember levels. Saudi Arabia’s overall global crude oil shipments will be kept at 6.9 million bpd in January. For December, the Saudis had cut total crude oil exports by 120,000 bpd from just above 7 million bpd in November, cutting shipments to all regions, including a 10-percent reduction of oil exports to the U.S.

    Meantime, Russia was pressuring its partners in OPEC+ agreement to end it as soon as it is possible as it sees more advantages in lower oil prices. First, the lower the oil prices, the less motivated U.S. shale producers would be to expand their own production. Like OPEC, Russia sees U.S. shale boomers as the main threat to its positions in the global oil market. Besides, the Russian economy benefits from a weaker rouble, which could be ensured by lower oil prices.

    Some reports said that Libya has immediate plans to raise oil production, which could re-kindle doubts about how long some OPEC members would stick to their promises to curb production. Libya (along with Nigeria) was originally exempted from the OPEC oil production cuts, agreed last November. The country is heavily dependent on oil revenues and was struggling with a rising budget deficit and soaring inflation amid continuing conflicts between various armed groups.

    In Nigeria a major oil union has threatened to strike on December 18th in retaliation to a mass sacking of workers that had joined the organization. In addition, on Nov. 06 residents of the Bayelsa region in the Niger Delta disrupted oil production at a field operated by Shell, shut-ting down two oil wells. The oilfield in question has been safe from attacks on oil infrastructure in the Niger Delta, which began in 2017. Nigeria had shut nearly half of its oil production by the end of last year due to the strength of the anti-Abuja campaign in major oil-producing areas.

    That added to fears of potential supply disruptions in the wake of growing Middle East political tensions after Saudi Arabia called for a review of US President Donald Trump's decision to direct the State Department to begin preparations to move the US Embassy in Israel from Tel Aviv to Jerusalem.
    Britain’s Forties oil pipeline, the country’s largest at a capacity of 450,000 barrels per day (bpd), shut down on Dec.11 after cracks were revealed. A closure of this particular pipeline has global implications as the Forties system is the main carrier of the oil that underpins the Brent crude oil benchmark: the outage could disrupt North Sea oil supply as North Sea operators could be forced to curb production. It is expected, that more than 80 oil platforms would need to shut down because of the disruption.
    US drillers are adding rigs for the fifth week in a row. The number of oil rigs climbed by 2 and stands at 751 versus 498 a year ago. Along with an increase to the number of active oil rigs, US crude oil production continues to climb a weekly basis, placing further pressure on prices. It has risen by more than 15 percent since mid-2016 to 9.78 million barrels per day (bpd), the highest level since the early 1970s and close to the output of top producers Russia and Saudi Arabia. Higher production in November reflected oil production platforms returning to operation after being shut in response to Hurricane Nate.
    And finally, China’s crude oil imports rose to 37.04 million tonnes in November, or 9.01 million bpd, the second highest on record. It is expected that China’s crude oil imports will continue to rise, as output declines from several of its biggest onshore fields. As a result, China becomes more reliant on crude oil imports with import dependency set to increase from a record 68.0 percent in 2017 to nearly 80 percent by 2021.
    In general, global fuel market feels some lack of optimism caused by the results of OPEC+ actions to curb oil production. The focus is shifting again to the ratio of the fundamentals: supply and demand. We expect, however, that bunker fuel prices still maintain the potential for growth next week.



     

     

     

     

     

     

     

    * 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 September 23

10:47 DEME unveils innovative nodule collector pre-prototype ‘Patania II’
10:33 Global Ship Lease secures additional charter coverage and adds Maersk Line to charterer portfolio
10:30 Hapag-Lloyd announces rates from Latin America to North Europe and South Europe

2018 September 21

18:06 Forth Ports wins prestigious award for community work
17:44 NCSP Group's cargo turnover for January–July 2018 totaled 82,351 thousand tons
17:28 First ISO-container ever loaded with liquefied natural gas at the LNG terminal in Świnoujście
17:06 Gibdock, RSP Systems and New Zealand fisheries choose LR
16:31 Outlook for marine cargo insurance challenging but opportunities remain for underwriters, says IUMI
16:04 Babcock ecoSMRT receives LR acknowledgement for ship application
15:09 Trafigura holds naming ceremony for first of 35 newbuild crude oil and product tankers
14:56 IBIA takes part in SIBCON 2018
14:27 Krasnoye Sormovo shipyard launches Pola Fiva, fifth dry cargo carrier of Project RSD59 built for Pola Rise
14:09 British International Freight Association fumes over sulphur surcharge
13:52 Ukraine’s water transport carried 0.5 million passengers in 8M’18, up 10.5%, Y-o-Y
13:31 Maersk’s regional carriers go to market under one brand
13:09 GE Shipping takes delivery of Secondhand Very Large Gas Carrier “ Jag Vasant ”
12:50 ABP aims for frictionless trade with blockchain
12:28 Cargo transportation by Ukraine’s water transport declined by 1.9% to 3.6 million tonnes in 8M’18
12:09 COSCO SHIPPING Tanker (Dalian) takes delivery of 319,000 dwt Mt Cosnew Lake
11:07 Odfjell finalizes sale of Rotterdam tank terminal
10:36 ABP promotes South Wales ports as cruise destinations
10:07 Georgia Ports plan 8 million TEU capacity by 2028
09:54 Brent Crude futures price up 0.06% to $78.75, Light Sweet Crude – up 0.14% to $70.22
09:35 Bunker prices are going up at the Port of Saint-Petersburg, Russia (graph)
09:16 Baltic Dry Index is up to 1,396 points
09:03 APL’s Eagle Express service makes a solution for precise logistics management
08:07 Yang Ming to upgrade China-Vietnam-Thailand service
07:20 Iskes Towage names twin Damen ASD Tugs 3212 Mars and Mercurius

2018 September 20

21:17 Expert says production declines and geopolitical unrest may push bunker prices up
18:02 SITC holds naming & delivery ceremony for M/V “SITC TOYOHASHI”
17:54 Sovcomflot participates in Eastern Economic Forum’s business programme
17:30 Kurt Bodewig appointed as new European Coordinator for Motorways of the Sea
17:07 Port of Singapore holds annual multi-agency ferry emergency exercise
16:46 IAPH regional conference sets pan-African ports agenda
16:25 UAE to host Dubai Marine Insurance Conference 2018 on November 20-21
16:07 Governments of New Zealand and Australian announce fumigation requirement for import cargos
15:48 Sovcomflot is a Partner of the Second Conference “LNG Fleet and LNG Bunkering in Russia”
15:32 NYK product tanker rescues 28 fishermen off the coast of Colombia
15:04 CMA CGM announces GRR from Asia to West Africa
14:56 Admiralteiskie Verfi launches the Kronshtadt, diesel-electric submarine of Project 677
14:32 DNV GL releases autonomous and remotely operated ship guideline (UPDATE)
14:04 Port of Long Beach awarded $4.2 mln security grant
13:32 ABS supports innovative yacht design with dedicated guidance notes and software
13:20 Finnish Transport Agency: international seaborne transport volumes show significant boost
13:04 Port of Antwerp works on structural solutions to improve mobility
12:43 Arctic group of RF Navy’s Northern Fleet enters Chukchi Sea through Bering Strait
12:30 Wison receives AiP from LR for 300MW FSRP
12:04 Port of Rotterdam and Rönesans Holding sign agreement for petrochemical industrial zone in Turkey
11:49 IMO to start consideration of legal framework for low-flashpoint diesel
11:30 Gulftainer signs 50-year, $600 million concession to operate and expand Port of Wilmington in Delaware, USA
11:18 Fuel oil prices are going up the Far East ports of Russia (graph)
11:04 Green Corridor JIP delivers innovative bulk carrier designs for a low emissions future
10:55 IMO takes important step to facilitate use of methanol
10:30 HHI receives AiP from LR for a VLGC design capable of using LPG as fuel
10:19 Brent Crude futures price up 0.3% to $79.64, Light Sweet Crude – up 0.61% to $71.2
10:03 OpenIJ starts sinking operation of the lock gate chamber at the Port of Amsterdam
09:50 Passenger Port of Saint-Petersburg ("Marine Façade") welcomed MSC Meraviglia
09:34 CMA CGM announces GRR from India to East Africa
09:17 Baltic Dry Index is up to 1,373 points
09:03 Port of Rotterdam organises information meeting about the replacement of Maaskade quay wall