• 2020 March 24 10:12

    MABUX: Bunker market this morning, Mar 24

    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) demonstrated slight downward trend on March 23:

    380 HSFO: USD/MT 258.85 (-3.97)
    VLSFO: USD/MT 330.00 (-7.00)
    MGO: USD/MT 419.19 (-7.02)


    Meantime, world oil indexes did not have firm trend on Mar.23 with demand still sliding as travel and industrial activity contracted across the globe in a bid to stem the spread of coronavirus.

    Brent for May settlement increased by $0.05 to $27.03 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May rose by $0.73 to $23.36 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.67 to WTI. Gasoil for April delivery lost $15.00.

    Today morning global oil indexes have turned into slight upward correction.
     
    The demand destruction caused by the coronavirus pandemic comes as the oil market contends with the unexpected price war that erupted between producers Russia and Saudi Arabia, effectively ending an OPEC+ alliance and flooding the market with barrels.

    On Mar.20, OPEC Secretary General Mohammad Barkindo invited Texas Railroad Commissioner Ryan Sitton to the organisation’s summer meeting in June. Although this invitation quickly raised hopes for a deal to stabilise oil prices, Sitton attracted criticism as he called for decreased production of Texan crude output for the first time since 1970.  Neither Saudi Arabia nor Russia are backing down from their strategy in the ongoing price war. The increased supply that both countries are insisting on could soon send prices crashing even lower, as the unabating spread of the COVID-19 pandemic continues to lower demand.

    Goldman Sachs said supply restraint by core-OPEC producers could push second-quarter Brent oil prices up to $30 a barrel, while U.S. measures to support the market could underpin prices in the near term. Meantime, even if any U.S. measures could support the oil market into the second half of the year, however, Goldman Sachs said accompanying supply cuts would still not be enough to offset the 8 million barrels per day (bpd) demand loss – brought about by countries slowing economic activity to halt the spread of the coronavirus which has caused nearly 10,000 deaths worldwide.

    Rystad Energy predicts, global storage infrastructure is in trouble and will be unable to take more crude and products in just a few months. Current liquid balances show supply surpassing oil demand by an average of nearly 6 million bpd in 2020, resulting in an accumulated implied storage build of 2.0 billion barrels this year. Based on Rystad analysis, the world currently has around 7.2 billion barrels crude and products in storage, including 1.3 billion to 1.4 billion barrels currently onboard oil tankers at sea. On average, 76% of the world’s oil storage capacity is already full.

    Wood Mackenzie in turn has reported that China’s crude stock (including strategic and commercial petroleum reserves) could reach 1.15 billion barrels in 2020 – but limitations in storage capacity are reducing the fill rate. Since the last oil price crash in 2014, China has been accelerating its crude imports for strategic and commercial storage from about 200 million barrels in 2014 to 900 million barrels in 2019. This is equivalent to about 70 days of its 2019 oil demand and 70% of its 2019 total storage capacity. China is expected to continue importing crude to fill its reserves taking advantage of lower oil prices. But this time, China could build its crude reserves by up to 300,000 barrels a day (b/d) from March 2020 to the end of 2020, due to limitations in storage capacity, as storage capacity utilisation reaches 90% this year.

    Refining operations in Europe and elsewhere in the world are being curtailed as gasoline and jet fuel demand is falling down due to the enormous demand destruction in the spreading coronavirus pandemic. In Europe, oil majors are shutting down refinery units as major economies are under lockdown and flights are severely restricted. Across Europe, lockdowns in Italy, Spain, and France are crushing oil demand and German traffic is down 40 percent. Falling demand, including jet fuel demand, may force Japanese refiners to cut run rates. Japanese refiners are stocked with crude for April and don’t have much room to take extra barrels from Saudi Arabia, regardless of how cheap the flood of additional supply will be.

    Asian spot liquefied natural gas (LNG) prices rose for a third straight week on slowly recovering demand in China as local transmissions of coronavirus ease but a flood of cargoes from the West could reverse price gains. The average LNG price for May delivery into northeast Asia LNG-AS was estimated at $3.50 per million British thermal units (mmBtu), up 20 cents from the previous week. Prices for cargoes delivered in April were estimated around $3.70/mmBtu, up 30 cents from a week ago. European gas demand could fall more than 4% over the next two months on depressed commercial and industrial activity as more countries lock down to tackle the spread of the novel coronavirus. This could see more cargo flows towards Asia, eventually depressing prices.

    We expect bunker prices may change irregular today in a range of plus-minus 5-10 USD.




2024 April 23

10:36 Thecla Bodewes Shipyards successfully launches 'Vertom Anette’ for Vertom Group
10:12 Carras Aquataurus becomes world’s first vessel to earn ABS Biofuel-1 notation

2024 April 22

18:10 Cosco Shipping and Shenzhen port partner for automobile exports
17:42 SBM Offshore signs a US$250 million short-term corporate facility
17:06 MSC Group, MSC Foundation and Mercy Ships to build a hospital ship
16:45 Port of Valencia container volumes up to 459,749 TEUs in March 2024
16:13 TotalEnergies launches the Marsa LNG project and deploys its multi-energy strategy in the Sultanate of Oman
15:24 ABS and DOE sign MOU to collaborate on clean energy development and maritime decarbonization research
14:51 MOL becomes first Japanese operator to commercially install onboard CO2 capture system
14:24 Wartsila receives contracts to supply cargo handling and fuel gas supply systems for three new VLECs
13:54 Yang Ming revamp Far East-East Coast of South America Service
13:24 Cunard officially welcomes new ship Queen Anne with ceremony at Fincantieri shipyard
12:01 Value Maritime and MOL sign contract to supply an Exhaust Gas Cleaning System for an LR1 Product Tanker
11:43 Diamond Line enhances its NET2 service
11:24 Kotug International selected EST-Floattech for the containerized battery system for world’s first fully electric pusherboat
10:51 Torqeedo to integrate ocean plastics into its pioneering products

2024 April 21

15:07 Steerprop selected to supply main propulsion and tunnel thrusters for CCG's multi-purpose vessels program
13:51 First of its kind TRAktor V3900-DF launched at Uzmar Shipyard
12:37 ABS and DOE sign MOU to collaborate on clean energy development and maritime decarbonization research
11:25 SCHOTTEL to equip four new compact Damen ASD tugs with SRP 270 RudderPropellers
09:57 Hanwha Ocean expands offshore construction presence

2024 April 20

15:02 European ports contend with slow economic growth, geopolitical impact
13:43 AD Ports Group signs strategic agreement with ADNOC distribution for marine lubricants supply
12:17 Stena Bulk completes sale of Stena Blue Sky
10:05 Newbuild ocean tug bolsters growing LNG bunker fleet

2024 April 19

18:02 CMA CGM to strengthen and reshuffle its SEAS1 & SEAS2 services connecting Asia and East Coast South America
17:25 OOCL upgrades Transpacific Latin Atlantic 1/ 2 (TLA1/ 2) service
16:45 The world's two largest hydrogen ships are to be built in Norway
16:15 KEYS Azalea completes first ship-to-ship LNG bunkering in Western Japan
15:40 Port Houston surpasses 1mln TEU mark in Q1 2024
15:29 World's first ammonia dual-fuel Aframaxes to be developed by MISC
14:55 Port of Rotterdam total cargo throughput up 2.0% to 3.3 million TEUs in Q1 2024
14:06 DNV awards certificates for Fortescue’s dual-fuelled ammonia-powered vessel
13:44 Imoto Lines and Marindows launch next-generation zero-emission container ship project
12:41 The Port of Los Angeles and the Port of Long Beach complete a comprehensive Green and Digital Shipping Corridor study
12:20 Ulsan Port Authority signs MOU with Pacific Environment to decarbonize shipping ports in Singapore
11:50 Cavotec signs USD 5 million shore power order with global shipping company
11:22 Rio Tinto selects Alfa Laval OceanGlide fluidic air lubrication with a focus on advancing efficient shipping and reducing emissions
10:45 Steerprop selected to supply main propulsion and tunnel thrusters for Canadian Coast Guard multi-purpose vessels program
10:14 ST Engineering AirX and Bureau Veritas sign cooperation agreement to advance Wing-in-Ground technology
09:38 Solar panels at the Port of Valencia will generate 22% of the energy it consumes

2024 April 18

18:02 DEME wins cable installation contracts from Prysmian for IJmuiden Ver Alpha and Nederwiek 1 offshore grid systems
17:31 RINA awarded contract for Carnival Cruise Line 4th and 5th Excel-class ships
17:18 Cepsa and Evos join up for green methanol storage in Spain and the Netherlands
16:48 ClassNK commences joint research project with JAXA on material compatibility evaluation methods for liquefied oxygen
16:24 Panama Canal announces new measures regarding number of transits and maximum draft
15:50 Kongsberg Maritime secures contract to supply propeller systems to Damen Naval for four Anti-Submarine Warfare frigates
15:24 LR to class Torghatten Nord’s hydrogen-powered ferry duo for Arctic sailings
14:04 CMA CGM sells part of the foreign activities of Bolloré Logistics to the Balguerie Group
13:40 Methanol Institute and SEA-LNG unite against EU trade barriers to biomethane and biomethanol fuels
13:23 DP World launches a new Air Tracking feature to its SeaRates platform
12:31 Port of Los Angeles container volume increases 19% to 743,417 TEU in March 2024
12:16 MABUX: Bunker Outlook, Week 16, 2024
12:11 Coastal Sustainability Alliance boosts development and adoption of maritime biofuel in Singapore
11:43 Ocean Network Express launches reduced emissions shipping service
11:23 Wartsila cargo handling and fuel gas supply systems selected for three new Very Large Ethane Gas Carriers
10:45 Singapore plans production of biofuel blends up to B50 in grade
10:25 Maritime and Port Authority of Singapore and International Energy Agency сollaborate on maritime energy transition

2024 April 17

18:03 Australia and Singapore partner in a $20 million initiative to help reduce emissions in the maritime sector
17:38 EPS strengthens green collaboration with MPA with six Singapore-registered ammonia dual-fuel newbuilds
17:03 HD Hyundai, Scottish firms to cooperate on offshore wind power
16:16 Hanwha Ocean wins 176.4 bln-won order for 1 LPG carrier
15:46 Maritime Book and Claim System advances pilot study to support first movers in zero-emissions shipping
15:00 Port of Antwerp-Bruges cargo volumes up 2.4% to 70.4 million tonnes in Q1 2023
14:47 DOF Rederi AS sells PSV Skandi Gamma
14:24 PIL, CCS partner on alternative fuels and onboard carbon capture and storage
13:44 Total volume of bunker fuel sales at the port of Fujairah increases by 25.2% to 700,918 m3 in March 2023
12:11 Eureka Shipping announces construction of new cement carrier for Great Lakes trade
11:32 MOL to adopt new system to increase capacity and improve operational efficiency of car carriers
11:12 GTT receives an order for the tank design of eight new LNG carriers