• 2018 June 1 15:16

    Expert says bunker prices may change irregular amid high volatility on the market

    The Bunker Review is contributed by Marine Bunker Exchange

    World oil indexes have demonstrated steep decline in the beginning of this week on news that OPEC and its partners, including Russia, are considering a loosening of their production limits.

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO at the main world hubs) also demonstrated downward trend in the period of May.24 – May 31:
        
    380 HSFO - down from 440.64 to 435,14 USD/MT (-5.50)
    180 HSFO - down from 479.07 to 477,07 USD/MT (-2.00)
    MGO        - down from 707.21 to 692.57 USD/MT (-14.64)

    Crude oil inventories in the Organization for Economic Co-operation and Development have fallen below their five-year average level. They are now 20 million barrels below that aver-age due to OPEC’s overcompliance with the production cuts.

    Saudi Arabia and Russia are in discussions about raising their production limits, perhaps add-ing as much as 1 million barrels per day to the market. The group could announce a change in Vienna next month. The idea could be to bring compliance back down to 100 percent, which would mean allowing members to produce more to offset Venezuela’s declines. Nothing is finalized yet and the talks will continue for the next few weeks. Fuel prices sank on the news.

    Russia has already confirmed it is going to discuss with OPEC in June whether it’s appropriate to gradually scale back oil-output cuts. Some of Russia’s largest oil producers called for more flexibility after almost 17 months of output curbs as the cuts have achieved their goal and crude prices near $80 a barrel are high enough. RF Energy Minister Alexander Novak plans to meet oil bosses to discuss the deal.

    While Saudi Arabia and Russia have reportedly agreed to increase production, reports suggest that there isn’t agreement from the rest of the OPEC/non-OPEC to go along. Several producers are opposed to adding some production back into the market, since higher production levels would presumably come from Saudi Arabia and Russia, at the expense of other countries who are already producing as much as they possibly can.

    India will continue importing Iranian crude despite U.S. sanctions. India is the biggest buyer of Iranian crude and imported an average 640,000 bpd last month, the highest since October 2016. There is also speculation that India could decide to settle its Iranian crude oil imports in national currencies to limit the risk of getting penalized by Washington. China, another major buyer of Iranian crude that has said it will ignore U.S. sanctions, may also decide to start using its nation-al currency to pay for the crude.

    Meantime, Russian and Chinese state-owned companies are expected to take business opportunities in Iran after European companies leave. China’s Sinopec is moving to complete a $3 billion deal to develop a section of the Yadavaran gas field that Royal Dutch Shell had hoped to secure. CNPC could take an additional $1 billion stake in the South Pars gas field from its partner Total. A series of Russian companies have also completed deals in Iran.

    The Saudi-led Arab military coalition destroyed on May 23 two boats of the Iran-aligned Houthi rebels threatening a commercial oil tanker in the Red Sea. Last month, a Saudi oil tanker was targeted by the Houthi movement off Yemen’s port of Hodeidah, sustaining minor damages and completing its course north. Yemen lies along one of the main global oil chokepoints in the Red Sea. In recent weeks, the conflict looks to have escalated, with Houthis firing ballistic missiles over Riyadh, in retaliation for air raids by a Saudi-led coalition. The Royal Saudi Air Defense intercepted at least one ballistic missile over Riyadh in that attack.

    Libya’s oil crescent on May 27 announced a maximum security alert over possible terrorist at-tacks in vital oil ports and oilfields. The African oil producer faced oil production outages last week, too, as bad weather caused turbines to stop working. Approximately 120,000 bpd was shut in as a result of that outage, at a time when Libya is trying to raise its production above the 1 million bpd mark. In fact, Libya’s recovering oil production has been a swing factor for oil prices since 2016.

    U.S. production continues to grow and exports are also set for a further increase: June shipments are projected to hit 2.3 million bpd, of which 1.3 million bpd will go to Asian buyers. U.S. crude is cheaper than both the OPEC basket and the Russia Urals benchmark. This is cause for concern in the cartel and in Russia, which has already made it very clear it would be happier with oil at around US$60 a barrel rather than US$80. Besides, there are concerns that U.S. port infrastructure won’t be able to handle much higher levels of exports. Export capacity data isn’t tracked and the exact capacity is not known, although it is thought to be around 3.5 million bpd.

    We expect global fuel market will be in a state of high volatility on the threshold of OPEC+ meeting on Jun.22. Bunker prices may change irregular next week.

     

     

     

     

     

     

     

    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 18

10:55 Seafarers’ mental health is focus of new training programme offered free to mariners worldwide
10:51 RF Navy’s Pacific Fleet detachment to conduct exercise East China Sea
10:13 Ulstein secures contract for design of Jones Act compliant SOV vessel
09:58 Brent Crude futures price up 0.07% to $79.99, Light Sweet Crude – up 0.1% to $67.61
09:39 Myanmar officials trained in forming maritime transport policy
09:14 Baltic Dry Index is down to 1,554 points

2018 October 17

18:03 PGNiG and Venture Global LNG announce LNG Sales and Purchase Agreements for 2 million tonnes per year
17:46 The Freeport of Riga Authority continues to develop cooperation with China
17:22 Port Manatee enjoys record fiscal year with diverse growth
17:00 North Sea Port and Titan LNG successfully supply sea-going vessel with LNG fuel
16:55 33 LNG carriers and 8 gas condensate carriers with export cargo left port Sabetta in April-June 2018
16:24 Baku International Sea Trade Port launches two new tugboats
16:02 Hapag-Lloyd announces General Rate Increase for East Asia to Mexico, Central America, West Coast of South America, Caribbean & Panama trade
15:46 New BIMCO & IBIA Bunkering Guide available
15:23 NOVATEK and Fluxys plan to build an LNG terminal in Rostock
15:02 NYK develops original software that diagnoses combustion chamber problems
14:40 RF Government allocates RUB 8.4 billion for the Far East development
14:21 Scorpio Bulkers announces time charter-out agreements
14:03 CMA CGM implements Empty Repositioning Surcharge for exports from all Turkish ports
13:32 Ørsted contracts Van Oord for cable installation Borssele I & II
13:21 Throughput of Ukraine’s seaports in 9M’18 fell by 1.7% Y-o-Y to 95.9 million tonnes
13:04 CMA CGM to introduce new BAF on Asia-Africa trade
12:30 GTT and Dongsung Finetec sign a Memorandum of Understanding
12:02 Maritime and Port Authority of Singapore and partners sign MoU for 3D printing facility and applications in maritime sector
11:53 Identifying barriers to cutting emissions through just-in-time operations
11:27 Norddeutsche Reederei H. Schuldt joins V.Group
10:50 Brent Crude futures price down 0.09% to $81.34, Light Sweet Crude – up 0.06% to $71.88
10:42 CMA CGM to introduce new BAF on Europe-Africa trade
10:37 Damen Shipyards Galati hands over 74-metre fishery research vessel to Angolan government
10:27 Maritime Arctic Competence Center opens in Saint-Petersburg
09:42 KN invests in environmental protection measures
09:20 Baltic Dry Index is down to 1,578 points

2018 October 16

18:33 Maersk Line announces new FAK rates from Mediterranean to West and Central Asia
18:03 ABS holds two seminars at the 58th Genoa International Boat Show
17:55 Throughput of port Kaliningrad in 9M’18 grew by 5% Y-o-Y to 10.65 million tonnes
17:36 Wärtsilä opens the first International Maritime Cyber Centre of Excellence in the world
17:03 CMA CGM announces Overweight Surcharge on Asia and India to Africa trades
16:56 Wärtsilä launches Acceleration Centre in Singapore and partners with MPA and PSA Marine to develop IntelliTug
16:40 Throughput of port Vyborg in 9M’18 up 22% Y-o-Y to 1.33 million tonnes
16:21 Throughput of port Primorsk in 9M’18 fell by 11% Y-o-Y to 39.80 million tonnes
16:03 Höegh LNG announces amendment of the Höegh Gallant time charter
15:44 LUKOIL starts construction of facilities at Rakushechnoye field
15:22 Throughput of port Vysotsk in 9M’18 climbed by 6% Y-o-Y to 13.69 million tonnes
15:03 Avatar Logistics initiates cooperation with Sand & Grus AB Jehander and buys the vessel MS Jehander
14:41 Throughput of port Ust-Luga in 9M’18 declined by 5% Y-o-Y to 72.38 million tonnes
14:20 CMA CGM announces GRR from Far East to West Africa
14:03 Lithuanian Railways, Metrans and the Port of Hamburg strengthen relations
13:52 Throughput of Port St. Petersburg up 12% to 44.22 million tonnes in 9M’18
13:06 Scorpio Bulkers announces update on scrubbers
12:39 Project 22800 small missile ship Burya to be floated out on 23 October
12:13 Rolls-Royce and Intel announce autonomous ship collaboration
11:55 The Port of Riga outlines a vision for future development of Spilve Meadows
11:31 Ørsted selects GeoSea for Borssele 1 & 2 foundation and turbine transport and installation
11:14 Jan De Nul will dredge access channel to Guayaquil Port
11:11 RF Navy’s Baltic Fleet detachment completed tasks in Mediterranean Sea
10:59 Damen Maaskant Shipyards Stellendam celebrates 70 years and bids farewell to director Frits van Dongen
10:50 Detachment of RF Navy's Pacific Fleet completes visit to Republic of Korea
10:28 WMU holds needs assessment workshop in Jordan
10:02 Brent Crude futures price up 0.31% to $81.03, Light Sweet Crude – up 0.11% to $71.86
09:43 IMO ​pushing forward with tackling greenhouse gas emissions