• 2020 March 26 10:16

    MABUX: Bunker market this morning, Mar 26

    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) changed insignificant and irregular on March 25:

    380 HSFO: USD/MT 258.46 (-0.49)
    VLSFO: USD/MT 330.00 (+1.00)
    MGO: USD/MT 417.93 (+1.10)


    Meantime, world oil indexes rose slightly on March 25, bolstered by progress on a massive pending U.S. economic stimulus package.

    Brent for May settlement increased by $0.24 to $27.39 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May rose by $0.48 to $24.49 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.90 to WTI. Gasoil for April delivery gained $2.75.

    Today morning global oil indexes do not have any firm trend so far.
     
    U.S. senators and Trump administration officials have reached an agreement on a $2 trillion stimulus bill helping to boost markets.

    Over the weekend, Bank of America told clients the US was heading towards a recession because of the spread of the coronavirus. In addition, oil producing countries continue to increase production at record levels amidst a price war between Russia and Saudi Arabia after OPEC+ (OPEC and Russia) failed to reach an agreement earlier this month over how much further to cut production to offset the virus outbreak-induced decline in demand. Some oil producers recently reduced selling prices by up to 20 per cent.

    Two main scenarios are under discussion at the moment: the best-case scenario includes effective control measures against the pandemic and successful stimulus packages that could halt the secondary effects on the economy while a resolution to end the oil price war is also required. This scenario does not mean oil will return to $60 plus levels, and $45 plus level looks more reasonable. The worst-case scenario assumes that the global economy will be impacted by a wave of bankruptcies.

    With the Saudis holding out and flooding the market with oil, the oil glut could reach a staggering 1 billion barrels in a matter of months and $10 oil is suddenly looking like a distinct possibility. Even though the American government plans to purchase a total of 77 million barrels of oil for its strategic reserves, this can only be done at a 2 million barrels per day clip, thus leaving a massive excess of nearly 20 million barrels per day as the coronavirus continues to crush global demand.

    Barclays slashed by $12 a barrel its estimates for average WTI Crude price this year to $28 per barrel, and cut by the same amount--$12 a barrel--its outlook for the average Brent Crude price for 2020. Barclays now sees Brent Crude averaging just $31 a barrel this year, largely in line with other major banks that have already slashed their forecasts for Brent to the low $30s. The price outlook was slashed due to the spreading of the coronavirus and estimates of massive demand destruction across the world as many countries are now under lockdown, and thousands of flights are grounded. Last week, Morgan Stanley further cut its oil price forecast, expecting Brent Crude to average $30 a barrel during the second quarter, from $35 a barrel earlier.

    The U.S. is today showing signs of increased desperation as oil prices sink to levels that may pose a threat to the energy independence of the United States by kicking U.S. shale out of the market. Several recent actions taken by the United States indicate that it may be attempting to change the current trajectory of the global oil market, including by showing interest in stepping up negotiations with Saudi Arabia. The move comes after intense pressure from U.S. lawmakers and others in the industry in recent weeks, some of whom have urged President Trump to take the extreme stance of embargoing Russian and Saudi Arabian oil. Other calls to action include the Texas Railroad Commission’s suggestion to use pro-rationing that would force Texas producers to curb production.

    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 1.6 million barrels from the previous week. At 455.4 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year. This comes after two consecutive weekly inventory builds, the first of 7.7 million barrels, for the first week of March, and another, of 2 million barrels, for the second week of the month. Distillate fuel stockpiles last week shed 700,000 million barrels after during the previous two weeks, they declined by a combined 9.3 million barrels.

    Credit risk in the bunker market is intensifying amid the coronavirus outbreak, even as dropping bunker fuel costs following the recent collapse in oil prices offer some relief to shipowners. This comes as industry estimates a negative outlook for global bunker demand this year as shipping feels the heat and countries worldwide struggle to contain the pandemic. Despite that, some shipowners are considering locking in longer term contracts, but also volumes for April, as bunker fuel prices have dropped. On the other hand, some shipowners have already started taking steps to trim their capital expenditure to cope with tough markets.

    We expect bunker prices may rise slightly today in a range of plus 1-5 USD.




2020 April 8

15:04 THE Alliance announces COVID-19 response measures for May and June 2020
14:36 Vyborg Shipyard holds steel cutting ceremony for trawler of Project KMT02
14:02 The Kings of Spain check the maintenance of the supply chain in the port of Valencia
13:43 Lotos shipyard to build four dredgers for Russia’s inland water ways
13:21 Port Kolomna signs agreement with RF Ministry of Industry and Trade for ship srapping grant
13:02 North Carolina Ports completes Turning Basin Expansion Project at the Port of Wilmington
12:42 Shipping credit outlook revised to negative: cash crunch worsens as Covid-19 disrupts trade
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