• 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 June 22

11:49 IMO regional workshop to address the impacts of fouling
11:25 Ukraine’s water transport carried 0.1 million passengers in 5M’18, up 17.3%, Y-o-Y
11:03 Ulstein announces naming of the Acta Auriga
10:28 “M/V “VASILIY TATISCHEV ” with IMO number 8885157 refused access to the Paris MoU region for the second time
10:21 Brent Crude futures price up 1.15% to $73.79, Light Sweet Crude – up 1.25% to $66.36
10:00 Cargo transportation by Ukraine’s water transport fell by 10.5% to 1.5 million tonnes in 5M’18
09:38 Yevgeny Pankratov appointed as Director of FSUE Rosmorport’s Sakhalin Branch
09:19 Baltic Dry Index down to 1,347 points

2018 June 21

18:27 Diana Shipping announces time charter contract for m/v Philadelphia with Koch
18:00 CMA CGM announces new rotation on ASAF service
17:56 Russia is in need of small bunkering tankers, LNG bunker supply ships and bunker barges - Damen
17:31 Gate terminal (Gasunie/Vopak) to increase ship loading flow rate
16:58 Antwerp blockchain pilot pioneers with secure and efficient document workflow
16:24 Freeport of Riga Authority joins Cruise Lines International Association
16:02 Danaos Corporation announces comprehensive debt refinancing agreement
15:50 MABUX: All eyes are on what course of action OPEC will call for
15:40 12 LNG bunker supply ships to be put into operation in Singapore by 2025
15:02 Ship garbage recycling pilot wraps up at Port of Brisbane
14:39 Vyborg Shipyard launches port icebreaker Ob built for FSUE Atomflot
14:02 APM Terminals supports World Clean Air Day with App upgrade
13:41 Igor Zolotykh appointed as Harbour Master of port Ust-Luga
13:23 Victor Olersky appoints Igor Ishchenko as Harbour Master of port Primorsk
13:02 EU member states’ experts on ship recycling meet in Brussels
12:39 XI Russian Forum “Current State and Prospects for Development of Russian Bunker Services Market” opens in Saint-Petersburg
12:16 ABS issues industry-leading Guide advancing DC power for hybrid electric applications
12:00 Largest gantry crane in the Nordic countries delivered to Meyer Turku
11:57 HVCC Hamburg Vessel Coordination Center and the Rotterdam Port Authority launch unique cooperation
10:55 CMA CGM to acquire CONTAINERSHIPS, a leader in intra-regional transportation in Northern Europe
10:53 Protecting marine life from ship noise is in the focus of meeting on oceans and the law of the sea
10:28 Brent Crude futures price up 0.41% to $75.41, Light Sweet Crude – down 0.59% to $65.3
10:02 Maritime officials in Morocco undergo training at IMO workshop in Casablanca
09:41 Closer look at the interpretation of maritime law
09:19 Baltic Dry Index down to 1,373 points

2018 June 20

18:00 Lead landing ship of Project 11711, Ivan Gren, joins the fleet of RF Navy
17:33 Rosatomflot extends its winter-spring navigation period amid challenging ice conditions
17:05 Genco Shipping & Trading Limited completes common stock offering
16:05 Seatruck Ferries to use larger vessels for Warrenpoint service
15:51 Maritime leaders endorse green initiatives for shipping
15:30 Mitsui to make entry into subsea support vessel business through acquisition of shares in AKOFS Offshore
15:04 Eighty-two Crowley vessels honored with Jones F. Devlin Awards in recognition of 613 combined years of safe operations
14:59 GasLog Partners LP announces new charter agreement with Cheniere Energy
14:24 Small icebreakers of Project 22740 can be converted to run on LNG
14:05 Cheniere Energy and Cheniere Energy Partners announce definitive merger agreement
13:13 ABB brings efficiency and sustainability through system integration to two new Indian ferries
12:39 Dredging works commenced at the port of Ust-Luga
12:01 ABP Southampton publishes Air Quality Strategy with package of commitments
11:20 Bunker prices are down up at the port of Novorossiysk, Russia (graph)
11:01 Crowley adds 40 ISO tanks
10:45 Yaroslavsky Shipbuilding Plant completed the series of six boom-laying boats
10:31 GTT receives an order from Hyundai Heavy Industries to design the tanks of a new LNG carrier
10:22 Brent Crude futures price up 0.41% to $75.41, Light Sweet Crude – down 0.59% to $65.3
10:05 Euroports increases pulp & paper warehousing capacity in Tarragona, Spain
10:00 RF Government expands the list of publicly funded projects in seaports and on IWW of Russia
09:37 Bunker prices continue going down at the Port of Saint-Petersburg, Russia (graph)
09:16 Baltic Dry Index down to 1,419 points

2018 June 19

18:06 100 million dollars to link the Nile with Suez Canal Region
17:03 DNV GL partners with the EU and Government of India to bring offshore wind to the Indian market
16:32 CMA CGM deploys its innovative solution for containers tracking, TRAXENS by CMA CGM
16:18 APM Terminals ‘Cool port’ barge service speeds up distribution from Rotterdam
16:02 Multraship acquires an ASD Tug from Med Marine for Terneuzen operations