• 2018 June 14 13:47

    Global fuel market is waiting for some clarity from the Vienna meeting next week, expert says

    The Bunker Review is contributed by Marine Bunker Exchange

    World oil indexes have had irregular changes with no firm trend during the week. Fuel market is looking into the global supply and demand picture to guess where the prices of oil and fuel are heading. Some are focusing on the loss of supply from Venezuela and a potential reduction of Iranian exports to justify the view that prices will be heading higher. Others are figuring that OPEC will reverse some of the production cuts in place and bring back as much as 1 million bpd to the market to offset any supply disruptions.

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO at the main world hubs) added some points in the period of Jun.07 – June 14, but it is still too early to talk about any firm trend:
        
    380 HSFO - up from 427.79 to 429,86 USD/MT (+2.07)
    180 HSFO - up from 469.00 to 471,79 USD/MT (+2.79)
    MGO        - up from 669.57 to 678.71 USD/MT (+9.14)

    The markets shrugged at the historic meeting between President Trump and North Korean dicta-tor Kim Jong Un. Both sides hailed the summit as a breakthrough, with a pledge towards denuclearization, but as expected, there was a lack of even the most basic details on how they might get there. According to a report by the Korean Central News Agency (KCNA), Trump expressed his intention to halt U.S.-South Korea joint military exercises, offer security guarantees to the North and lift sanctions against it as relations improve. However, it seems that the summit had yielded only symbolic results and nothing essential.

    OPEC’s efforts to erase the oil glut and lift oil prices paid off as the cartel reaped higher revenues from crude oil exports in 2017. But the rewards from the cuts were not evenly split among the cartel’s members. The biggest percentage gain in the value of petroleum exports was recorded in Libya (up 61 percent on the year to US$15 billion). The second was Qatar (up 55 percent to US$35.5 billion) and The United Arab Emirates (UAE) was the third. The higher oil prices also helped most of the OPEC members (in particular Saudi Arabia, Libya, Venezuela, and Qatar) to improve their current account balances last year.

    Meantime, OPEC emphasized the deep uncertainty over the strength of demand for its oil just a week before contentious talks on whether to raise production. There’s a wide forecast range for how much crude the OPEC needs to pump in the second half of the year. With a range of 1.7 million barrels a day between the upper and lower estimates, demand could either be significantly higher, or slightly below, than OPEC’s current output.

    Besides, opposition to an increase in the OPEC/non-OPEC production limits continues to grow, with Iraq coming out against such a move. OPEC’s second largest producer said that the production cuts have not yet achieved the intended objective of balancing the oil market. The statement of opposition comes after Iran and Venezuela also called upon the group to keep the limits in place.

    The U.S. reportedly asked Saudi Arabia for higher oil production to offset Iranian outages, a request that was made before the U.S. withdrawal from the Iran nuclear deal. The apparent sudden shift in the Saudi position shortly after the conversation has annoyed a lot of OPEC members.  The comments raise the possibility of a contentious meeting in Vienna.

    Venezuela has begun testing seaborne oil transfers to ease a severe backlog of crude deliveries from its main terminals, as delays and production declines could temporarily halt state-run PDVSA’s supply contracts if they are not cleared soon. The delivery method entails specialized equipment and training and higher costs for ship owners and customers. Tankers waiting to load more than 24 million barrels of crude. Venezuela’s crude exports fell 6 percent in May to 1.168 million bpd while Venezuela’s crude exports in the first five months of 2018 were 27 percent lower than in the same period of 2017.

    Meantime, Russia’s oil production (the world’s biggest) had risen to 11.1 million bpd in early June, up from slightly below 11 million bpd in most of May and well above its target production of under 11 million bpd as part of the deal.

    The European Union has vowed to maintain the Iran nuclear deal despite the U.S. decision to exit, and Brussels has pushed back against Washington’s attempts to penalize European companies from doing business with Iran. However, some European companies have already begun cutting business ties with the Islamic Republic. Iran in turn said that it would ramp up work on its nuclear program if the EU is unable to offer enough security to ensure European companies can continue to operate in Iran.

    The estimates for how much Iranian oil U.S. sanctions will impact ranges. But the mass flight of top American and European companies, and the early signs of a significant decline in purchases from refiners around the world, plus the difficulty in finding shipping and insurance, all suggests that the supply disruptions could potentially be at the higher end.

    The number of new rigs drilling for oil in the United States rose by one last week to 862, its highest since March 2015. That suggests that U.S. crude output, already at a record high of 10.9 million barrels per day will climb further, which will continue to put downward pressure on fuel prices.

    China’s May crude oil imports eased away from a record high hit the month before. May shipments were 39.05 million tonnes, or 9.2 million barrels per day (bpd). That compared with 9.6 million bpd in April.

    We expect that bunker prices will likely change irregular over the next week until the fuel market gets some clarity from the Vienna meeting.

     

     

     

     

     

     

     

    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)




2019 May 20

18:35 First MAN dual-fuel, diesel-mechanical propulsion package bound for LNG-powered ferry
18:24 Peel Ports expands logistics services with acquisition
18:06 CMA CGM announces FAK rates from Asia to North Africa
17:28 Less storm damage in the port of Rotterdam because of Windbreakers
17:14 HMM to launch new Corporate Identity
17:06 Access World Terminals expands premises and activities in North Sea Port
16:54 Arctic LNG 2 and TechnipFMC sign EPC Contract for LNG plant
16:31 CMA CGM announces FAK rates from Asia to the Mediterranean
16:05 Damen Shiprepair Brest completes rapid repairs to LNG Carrier Methane Princess
15:38 Scrubber washwater to be investigated
15:15 MEPC agrees on scrubber guidance
14:51 Finnlines’ Tapani Voionmaa elected to the BIMCO Board of Directors
14:26 Gazpromneft Marine Bunker’s sales in 1Q’19 grew by 25% YoY to 800,000 tonnes
14:02 Zeaborn places 100 ships with Verifavia Shipping & Korean Register for Inventory of Hazardous Material services
13:44 Ministry of Transport and Communication of Finland: Reforms related to ship safety nearing completion
13:23 IMO organized workshop for getting audit-ready in Cameroon
13:02 Wärtsilä and LUT University to collaborate on research for 100% renewable energy systems
12:37 Average wholesale prices for М-100 HFO down to RUB 19,363 in RF spot market
12:01 International shipping on track to meet 2030 CO2 reduction target following critical UN IMO meeting
11:45 SMS Towage calls on Damen for two ASD 2411 Tugs
11:34 Annual capacity of Russia’s Baltic ports can be increased by 32.5% to 478.9 million tonnes by 2025
11:12 Bunker sales at the port of Singapore in Jan-Apr’2019 fell by 8% Y-o-Y to 15.78 million tonnes
10:50 Port of Singapore throughput in Jan-Apr’2019 fell by 1.1% Y-o-Y to 205.72 million tonnes
10:27 Throughput of port Shanghai (China) in Jan-Apr’19 remained flat at 178.59 million tonnes
10:05 Brent Crude futures price is up 1.27% to $73.13, Light Sweet Crude – up 1.18% to $63.66
09:46 Container throughput of port Hong Kong (China) down 7.6% to 5.99 million TEUs in Jan-Apr’2019
09:24 CLIA Conference and trade fair held in Southampton
09:13 Baltic Dry Index is up to 1,040 points
08:59 MABUX: Bunker market this morning, May 20.

2019 May 19

16:51 Hamburg Süd strengthens its product portfolio on the Europe–Central America, Caribbean and South America West Coast trade
15:47 CMA CGM to implement FAK rates for Asia to the Middle East Gulf, Asia to Pakistan / India / Sri Lanka trades
14:12 NYK develops Japan’s first additive for fuel oil compliant with 2020 SOx regulation
13:32 Hapag-Lloyd to restructure its Service Portfolio to/from Caribbean, Central America and SAWC
12:14 CMA CGM announces new FAK rates on Asia - North Europe service
11:06 USCG rescues 3 from sinking sailboat off Hatteras Inlet
10:16 PSA’s BMCT and CITPL hold Hyderabad trade meet

2019 May 18

15:12 CMA CGM launches the Reefer Pharma division for the temperature-controlled transportation of pharmaceutical products
14:51 DNO completes USD 400M bond placement
13:02 AAL delivers from China four RTGs to Port of Felixstowe
12:31 USCG deploys containment, collection system at Mississippi Canyon 20 site
11:07 Kotug Smit performs naming ceremony for tug ‘Buffalo’

2019 May 17

18:22 Maersk launches new CLX service, optimized West Coast Latin America - NE network
17:49 Madrid, Spain to host the International Cruise Summit on 27-28 November 2019
17:14 Krasnoye Sormovo delivers Idel-1, sixth ship of Project RSD59 series ordered by STLC
16:40 MPC Capital AG announces key figures for the 1st quarter 2019
16:16 Vyborg Shipyard launches second serial trawler of Project KMT01 built for Arkhangelsk Trawl Fleet
15:58 Leningrad Region presented layout of multimodal transport and logistics center at Bronka port
15:27 Nord Stream 2 AG submitted third permit application and EIA to DEA
15:04 Klaveness Combination Carriers ASA declares two options for the construction of the seventh and eight CLEANBU combination carrier with Jiangsu New Yangzi Shipbuilding
14:49 Marine Rescue Service takes delivery of Bakhtemir, lead ship in a series of four multifunctional salvage tugs of Project MPSV12
14:20 Net profit of Port Vanino for 1Q’19 calculated under RAS grew by 39.8% to RUB 562.34 million
14:03 Damen and De Beers Marine Namibia formalise new relationship, with Mangalia yard centre stage
13:58 IMO held national maritime transport policy training for Saint Kitts and Nevis
13:35 BC Ferries to implement fuel surcharge of 1.5 per cent on June 1 2019
13:21 Bunker prices started going up at the port of Saint-Petersburg, Russia (graph)
13:09 Grimaldi Group's ro/ro vessel Grande Europa was hit by a fire
12:52 PGNiG Group posts over one billion in net profit for the first quarter of 2019
12:30 Maersk Product Tankers completes sale and leaseback agreement
12:09 DEME Offshore awarded major Hornsea Two contract for foundation and turbine installation
11:43 Taganrog Sea Commercial Port handled 323,000 tonnes 1Q’2019