• 2019 February 27 11:18

    MABUX expects IFO, MGO products price to rise as of Feb 27

    The Bunker Review was contributed by Marine Bunker Exchange

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) dropped on Feb.26:

    380 HSFO - USD/MT - 411.14(-9.07)
    180 HSFO - USD/MT - 457.86(-8.43)
    MGO        
    - USD/MT - 639.64(-6.57)

    Meantime, world oil indexes rose on Feb.26 as Saudi Arabia and the rest of OPEC were expected to stick to their production cuts, despite renewed pressure from U.S. President Donald Trump.

    Brent for April settlement increased by $0.45 to $65.21 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April delivery rose by $0.02 to $55.50 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 9.71 to WTI. Gasoil for March delivery gained $8.75.

    Today morning oil indexes continue upward evolution after a report of declining U.S. crude inventories.

    The American Petroleum Institute (API) reported a surprise draw in crude oil inventory of 4.2 million barrels for the week ending February 22, coming in under analyst expectations that predicted that crude oil inventories would build by 2.842 million barrels. US crude oil production as estimated by the Energy Information Administration showed that production for the week ending February 15 - the latest information available - averaged 12 million barrels per day - another high for the US, breaking yet another psychological barrier. The EIA report on crude oil inventories is due to be released later today.

    Goldman Sachs said, Brent Crude oil prices could reach $70 to $75 a barrel in the near term, with an upside potential of exceeding the $67.50 a barrel forecast made earlier this month, as the oil market continues to tighten significantly. Yet, Goldman Sachs sees a possible Brent Crude jump into the $70s as fleeting, because U.S. oil exports and a possible easing of OPEC’s production cuts in the second half of the year could cap the bullish sentiment. According to the bank, OPEC’s cuts and possible acceleration of Venezuela’s supply disruptions will support oil prices in the coming months.

    President Trump cited significant progress in his decision to delay the implementation of tariffs on Chinese goods. A comprehensive trade deal remains rather difficult task, but the Trump administration is keen to dial back on the trade war. The development removes, for the time being, one of the greatest bearish factors facing the global fuel market.  

    Venezuela has reportedly been forced to pay heavy premiums for fuel imports from Russia and Europe. The U.S. cut off shipments of diluents to the country, and PDVSA has had to look elsewhere, but has been forced to pay higher prices as many sellers around the world decline to do business with the company. Besides, Venezuela is reportedly running out of storage space being unable to find enough buyers for its crude oil. As per estimations, more than 8 million barrels of oil are stashed on roughly 16 ships sitting idle along the country’s coast.

    Recently, tanker demand and rates have highlighted shifting supply patterns and have sparked a bit of a worry about OPEC’s compliance rates. Tanker rates changed from a low of US$15,000 per day earlier in February to double that last week. This rebound caused a knee-jerk reaction in traders, immediately concluding that OPEC producers were failing in their production cut agreement: higher rates mean more demand for tankers and this means more crude coming into the market, normally. Another bullish factor for oil demand and tanker demand is the new set of emission regulations from the International Maritime Organization (coming into effect next year), which will reduce the maximum allowed amount of sulfur in maritime vessel emissions to 0.5 percent from 3.5 percent. It may cause a boom in demand for low-sulfur bunkering fuel, and, accordingly, a boom in demand for the crude that is used to make it. As per forecasts, daily tanker rates will average US$29,200.

    Energy traders are starting to make plans for the possibility of a chaotic situation as the Brexit plan is still rather obscured with only a few weeks before the UK officially exits the European Union. Because of the links to the continent for natural gas, carbon allowances, and electricity, the ramifications for a no-deal Brexit could be significant.

    Shell, the world’s largest LNG buyer and seller, in its annual LNG report forecast that global LNG trade will rise 11 percent to 354 million tonnes this year as new facilities in Australia, the U.S., Russia and elsewhere increase supplies to Europe and Asia. More countries are also building LNG import or receiving terminals. As per Shell, LNG trade rose by 27 million tonnes last year, with Chinese demand growth accounting for 16 million tonnes of those volumes. The Asia-Pacific region accounts for 72 percent of global LNG demand, with that amount projected to soon increase to as much as 75 percent. However, some of this demand growth will not only come from China, but India, Pakistan, Bangladesh, Thailand, and in time the Philippines, and Vietnam. The Philippines and Vietnam, however, have yet to construct their first LNG receiving terminals. Meantime, LNG buyers move away from signing longer-term offtake deals: LNG spot trade amounted to 1,400 cargoes in 2018 which was close to 30 percent of the global market compared to 25 percent in 2017.

    We expect bunker prices may slightly rise today in a range of plus 1-3 USD for IFO and plus 5-7 USD for MGO.




2019 August 23

08:35 MABUX: Bunker Market this morning August, 23
08:07 World’s largest all-electric ferry completes its maiden trip

2019 August 22

18:04 Australian Maritime College and KONGSBERG eye potential for VR training with renewed support program
17:39 Nordic Engineering sponsors roundtable meeting “Import Substitution in Russian Shipbuilding: Ambition and Reality”
17:04 DOF Subsea issues Financial Report for 2nd quarter of 2019
16:47 Karelia proposed construction of deep-water freight and passenger port Kem’
16:25 Bunker prices go down at the Far East ports of Russia (graph)
16:04 Navios Acquisition reports results for H1 2019
15:53 PJSC TransContainer reports its Financial Results under IFRS for 6M'2019
15:12 ReCAAP ISC has released Guidance on Abduction of Crew in the Sulu-Celebes Seas and Waters off Eastern Sabah
15:04 Essar Ports expects to meet 60 MT target for FY20
14:31 Höegh LNG announces interim results for the quarter and half year ended 30 June 2019
14:14 Peel Ports takes important step towards being Brexit ready
13:56 Yamal LNG shipped twenty million tons
13:35 Arctic block of Far East Investment and Export Agency headed by Dmitry Fishkin
13:13 Sea Machines successfully deploys industry’s first autonomous spill-response vessel
12:28 Fire onboard MV Pyotr Tchaikovsky kills one in Saint-Petersburg
12:13 Frontera Offshore and DOF Subsea join forces for the Subsea Construction and IMR Mexican market
11:31 Kalmar to enhance STS crane capabilities at EUROGATE Tanger
11:21 HELCOM publishes report on noise sensitivity of animals in the Baltic Sea
10:59 HELCOM gets a new Executive Secretary
10:35 Caterpillar Eurasia and Admiral Makarov University agreed on establishing a brand new up-to-date training center
10:10 Steps towards new treaty to protect marine biodiversity
09:38 Brent Crude futures price is down 0.41% to $60.04, Light Sweet Crude – down 0.38% to $55.47
09:20 Hapag-Lloyd announces changes of North Europe Mediterranean Express Service
09:13 Baltic Dry Index is up to 2,061 points
08:44 MABUX: Bunker market this morning, Aug 22

2019 August 21

18:06 BBC Chartering appoints Ulrich Ulrichs as CEO
17:57 BPO joined World Ports Sustainability Program
17:36 Napier Port’s shares commence trading on the NZX
17:06 ZIM announces Q2 2019 results
16:41 Waterfront Shipping and Marinvest welcome second-generation low emission methanol-fuelled vessels
16:35 CMA CGM announces FAK rates from ISC to North Europe and the Mediterranean
16:32 Grady-White Boats honors MaineMax Pensacola as the worldwide sales leader
16:05 Hapag-Lloyd launches new South East Asia to Australia Services // SEA and S2A to start in October
15:42 Ferry in Estonia upgraded to battery-hybrid by Norwegian Electric System
15:21 Organisations release Joint Industry Guidance on the supply and use of 0.50%-sulphur marine fuel
14:55 Multipurpose small-draft salvage ship of MPSV12 project left for sea trials
14:30 BC Ferries releases first quarter results
14:04 DOF awarded two AHTS contracts to support drilling operations in New Zealand
13:27 Vladivostok offers second venue of “Import Substitution in Russian Shipbuilding: Ambition and Reality” roundtable
13:03 Workshop in Malaysia to help bring into operation the Regional Oil Spill Contingency Plan in South East Asia
12:46 Rosneft BOD recommended 1H’19 dividends at RUB 15.34 per share
12:25 Registration is underway for “Development of Icebreaking and Support Fleet” conference to be held as part of Neva-2019 exhibition
12:03 Ocean Yield extends option with Aker Energy for long-term charter of the FPSO Dhirubhai-1
11:41 Rosneft reports 9-pct increase of its 1H 2019 net income to RUB 325 bln
11:24 Vasily Boitsov appointed as USC Vice-President for Technological Development
11:02 Jan De Nul completes installation of all twenty foundations on the 120MW Formosa 1 Phase 2 wind farm in Taiwan
10:45 RF Ministry of Industry and Trade to prevent outflow of shipbuilding contracts from Russian shipyards
10:17 Scotline orders newbuild vessel from Royal Bodewes
10:16 Brazil readies its biofouling task force
09:51 Clean Arctic Alliance calls on Nordic Prime Ministers to support a ban on heavy fuel oil
09:47 Bunker market sees mixed price movements at the port of Saint-Petersburg, Russia (graph)
09:28 Brent Crude futures price is up 0.48% to $60.32, Light Sweet Crude – up 0.36% to $56.33
09:13 Baltic Dry Index is down to 2,059 points
09:00 MABUX: Bunker Market this morning August, 21

2019 August 20

18:40 ATON repair and maintenance shop to be built at navigation support post in Taganrog Bay
18:06 CMA CGM announces FAK rates from Asia to North Europe
17:29 Wallem-managed bulk carrier rescues Indonesian fishermen lost at sea for 10 days
17:06 MAN Energy Solutions and Samsung Heavy Industries sign a strategic cooperation agreement for the digitization of marine engines