• 2020 February 25 10:09

    MABUX: Bunker market this morning, Feb 25

    The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs) fell on February 24:

    380 HSFO - USD/MT 360.82 (-6.36)
    VLSFO - USD/MT 530.00 (-8.00)
    MGO - USD/MT 590.75 (-8.32)

    Meantime, world oil indexes also dropped on Feb.24 as the rapid spread of a coronavirus in several countries outside China added to investor concerns over the effect on demand for crude.

    Brent for April settlement decreased by $2.20 to $56.30 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April fell by $1.95 to $51.43 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $4.87 to WTI. Gasoil for March delivery lost $23.00.

    Today morning global oil indexes have turned into slight upward correction.

    Global fuel market remains on edge as the coronavirus is becoming a pandemic and there is no improvement of the situation in Iran, Italy, South Korea and Japan. South Korea's fourth-largest city, Daegu, grew increasingly isolated as the number of infections there rose rapidly, with some airlines suspending flights to the city until March 9 and March 28, respectively. The country reported its seventh death after raising its infectious disease alert to its highest level. Italy reported a third death from the flu-like virus and 150 infections. Iran said it had confirmed 61 cases and 12 deaths, with most of the infections in the Shi'ite Muslim holy city of Qom. Afghanistan, Iraq, Kuwait, Saudi Arabia and Turkey imposed travel and immigration curbs on the Islamic Republic.

    Saudi Arabia and Russia have so far failed to reach an agreement to cut oil production even with the COVID-19 epidemic in China expected to significantly hurt energy demand this year, putting the more than three-year-old alliance between the two major oil producers at risk. The Saudis are holding talks with Kuwait and the United Arab Emirates this week to discuss a possible joint production cut of as much as 300,000 barrels a day. If the alliance were to split, the immediate reaction would be a drop in oil prices, but that could be reversed by a strong OPEC cut.

    With no Nigerian cargoes sailing for China in February and the prime African crude producer becoming increasingly dependent on European demand, Nigeria’s state oil company NNPC has effectuated an across-the-board price cut on its March 2020 official selling prices. Its flagship export streams like Bonny Light, Qua Iboe, Forcados, Egina or Escravos were all cut by 50-60 cents per barrel month-on-month.

    The national oil companies of Malaysia and Indonesia, Petronas and Pertamina, have signed a framework deal that would allow them to swap crude as part of their refinery optimization strategies. Malaysia generally produces light sweet grades like Kimanis or Kikeh, whilst Indonesian production is more to the medium sweet side. Valued by the sides at $0.5 billion, the contract also accounts for potential product swaps and further cross-investment into each other’s upstream sectors.

    LNG deliveries from the US to Europe have become economically unviable on the back of the regional spreads narrowing. With landed LNG prices oscillating between 2.15-2.3 per MMBtu in the UK, France and Spain, buyers are cancelling their April-loading US cargoes, among them the Spanish Naturgy balking its Cheniere cargo. US exporters usually sell at 115% of Henry Hub futures plus the liquefaction fee.

    With anti-government protests continuing to haunt Iraqi society, the new prime minister Mohammed Tawfiq Allawi has ordered to reinforce security around key oil fields in the southern province of Basrah so as to avoid the repetition of production disruptions. A new oil minister is expected to be nominated later this week.

    BIMCO has announced it is co-sponsoring a proposal originally drafted by Japan to regulate the carbon intensity of existing ships. Under the proposals, existing vessels will have to comply with an Energy Efficiency Existing Ship Index (EEXI) limit. The proposal has been submitted to the intersessional working group on Green House Gas reductions, which will meet ahead of the Marine Environment Protection Committee (MEPC) in March.

    A draft proposal has been issued to Beijing from China Shipowners’ Association (CSOA) requesting a temporary 12-months reprieve from IMO 2020 sulphur content restrictions following the financial and logistical challenges faced from the coronavirus outbreak. Such submission is in anticipation of a potential shortage of low-sulphur fuel oil provisions in China, alongside ongoing financial concerns as coronavirus’ impact on the economy continues to deepen. If the suspension is granted, it is unclear whether this would apply to non-Chinese entities.

    We expect bunker prices may demonstrate downward trend today in a range of minus 8-12 USD for IFO and minus 18-22 USD for MGO with possible slight upward correction by the end of the trade session.

2020 April 8

12:05 Inland terminals at the Port of Hamburg hit by the corona crises differently
11:30 IAPH Tokyo secretariat transited to remote work from home
11:05 SAFEEN acquires its largest service vessel to date
11:02 BC Ferries adjusted service levels due to Covid-19 pandemic
10:39 ABB increases remote support for ships to help customers during the COVID-19 outbreak
10:38 Port of Gdansk actively supports fight against coronavirus
10:16 Tallink Grupp’s vessels Megastar, Galaxy and Baltic Princess suspend passenger transport to Finland
09:53 MABUX: Bunker market this morning, Apr 08
09:40 Bunker prices start going up at the port of Saint-Petersburg, Russia
09:19 Baltic Dry Index is down to 596 points
08:47 Golden Ocean announces appointment of Ulrik Uhrenfeldt Andersen as CEO

2020 April 7

18:38 RF Government makes big decision to quit transshipment of NOVATEK’s LNG in Norway
17:27 BashVolgotanker opens navigation with first tanker leaving Samara for Kavkaz
17:03 IADC moves its seminar and course to 2nd half of 2020
16:49 RF Navy’s oceanographic research vessel "Admiral Vladimirsky" arrived in the Durville Sea
16:05 ECSA and ETF launch joint project WESS
15:51 Bunker prices are flat at the Far East ports of Russia (graph)
15:43 Port of Rotterdam adds Boxinsider to Portbase
15:28 Dredging works at LNG terminal in Klaipeda Seaport completed ahead of schedule
15:04 VTT to assess bio- and waste-based oils suitable for power plants and ships
14:43 Nordic Investment Bank is sponsoring expansion of Klaipeda Seaport
14:20 AET and TOTAL agree time charter for two LNG dual-fuel VLCCs
13:52 Rosmorport changed tariffs on crew boats services rendered in seaports of Eysk and Temryuk
13:29 Krasnoye Sormovo shipyard introduced short-time operation till 30 April 2020
12:54 Rosmorport announces tender to reconstruct coastal facilities of Vanino-Kholmsk ferry service
12:26 Rosmorport announces tender to build and reconstruct port infrastructure in Nikolskoye settlement
11:47 Hydrographic vessel of RF Navy’s Pacific Fleet continues its long-distance cruise to Antarctica
11:09 Hurtigruten temporarily suspends operations
10:25 Brent Crude futures price is up 3% to $34.04, Light Sweet Crude – up 3.53% to $27
10:08 Stena Line to furlough 600 employees and make 150 redundant in UK and the Republic of Ireland due to COVID-19
09:53 Extraordinary security measures undertaken by PORT FLEET operating in Big Port St. Petersburg
09:34 Nuclear-powered container carrier Sevmorput unloaded cargo for Arctic LNG 2 project
09:16 Baltic Dry Index is down to 604 points
09:02 Austria's overseas traffic via Hamburg remains stable
08:46 MABUX: Bunker market this morning, Apr 07
08:19 LR chosen for LNG Canada export terminal project in Kitimat

2020 April 6

18:37 Okeanis Eco Tankers announces three year VLCC time charter
18:06 Bureau Veritas helps to manage risk thanks to digitalized inspection services
17:45 Turnover of DeloPorts terminals in January-March of 2020 reached 2.6 mln tonnes, up 44% YoY
17:39 The production of Tallink’s new car and passenger ferry MyStar has started at Rauma shipyard
17:12 Maersk Container Industry signs first Star Cool milestone contract with Evergreen
17:06 Lloyd’s Register completes six-day, three-person audit for marine and offshore component and equipment business Whittaker Engineering
16:30 8,800 cbm of material dredged in Korsakov seaport
16:08 MABUX Digest: Top events on global bunker market: Week 14
16:06 CMA CGM cancels PSS for cargo from East Africa to Asia
15:59 The Korean Register releases the latest updated version of KR-CON
14:50 DNV GL’s new MMC unlocks unprecedented machinery efficiencies and insights
13:57 Technical fleet of Moscow Canal to begin navigation season on April 24
13:33 Construction of Tallink Grupp’s newest eco-friendly LNG-powered shuttle ferry to begin at RMC shipyard in Rauma
12:46 World Ports Covid19 Information Portal established
12:22 IMO issues guidance for delays in newbuild vessel deliveries due to COVID-19
12:00 Nanjing Jinling Shipyard launches the second of G5GG ro-ro vessels for Grimaldi Group
11:18 Average wholesale prices for М-100 HFO fell to RUB 6,299 in RF spot market
11:00 Port of Singapore remains open amidst additional precautionary measures
10:21 Brent Crude futures price is down 1.61% to $33.56, Light Sweet Crude – down 3.18% to $27.43
10:09 NovaAlgoma Short Sea Carriers takes delivery of new mini-bulker
09:50 CIMC Raffles cuts first steel for largest Ice Class ro-ro
09:34 MABUX: Bunker market this morning, Apr 06
09:32 RF Government approves draft Energy Strategy until 2035
09:15 Baltic Dry Index is down to 616 points