• 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.




2024 March 19

11:42 MAN CEON digital platform receives Cyber Security Product Design Assessment certification from ABS
11:23 “K” Lline begins participating in joint study on liquefied CO2 marine transportation
10:48 Port of Los Angeles container volume increases 60% in Feb 2024
10:24 PortXL signs a partnership agreement with MINDbase
09:47 IMO to open regional office in Fiji to serve the Pacific

2024 March 18

18:13 Brunvoll propulsion chosen for ESVAGT's growing fleet of SOVs
17:42 ADNOC signs second long-term Heads of Agreement for Ruwais LNG Project
17:37 Cemre Marin Endustri shipyard holds launching ceremony for CMAL's MV Isle of Islay
17:24 Fortescue successfully conducts world’s first use of ammonia as a marine fuel in a dual-fueled ammonia-powered vessel in the Port of Singapore
17:02 APL updates on European Union’s Import Control System 2
16:03 MED Marine contracted to build MED-A2575 series tug for SVS Maritime
15:31 Hanwha Ocean and BV join hands to develop a 270K LNG carrier
15:17 HD Korea Shipbuilding awarded contracts for three VLACs
14:18 Port of Skagen and Stillstrom partner to decarbonise anchorage zone with offshore charging solutions
13:22 Sanmar delivers 6th battery electric power tugboat to Norwegian operator
13:16 COSCO SHIPPING Lines announces the launch of OCEAN Alliance DAY 8 product this year
12:21 Dutch offshore wind farm approved by LR
11:39 ClassNK awards first-ever notation for improvements in living and working environment to Fuyo Kaiun's bulk carrier "ELETTRA"
11:31 Davie strengthens Québec’s shipbuilding industry by supporting the reorientation of AFCDC
10:44 Storylines and Brodosplit shipyard renew ship building contract to construct private residence ship
10:25 BOEM announces environmental review of proposed wind energy project offshore New Jersey
09:51 First ‘flying’ electric ferry to debut in New Zealand in 2025

2024 March 17

16:31 Norwegian Shipowners' Association names Harald Fotland as its President
15:22 ABS Wavesight Nautical Systems now supports fully digital, streamlined SIRE 2.0 inspections
14:15 TechnipFMC selected by NEP to deliver the first all-electric iEPCI for CCS
13:03 US sanctions shipping company, targeting Iran and Houthi rebels
11:01 The first hybrid electric vessel built in South America will use a Corvus battery system
09:47 Kalmar and Forterra sign JDA for autonomous terminal tractor

2024 March 16

16:24 The Netherlands selects Naval Group for its submarine replacement program
15:41 Equinor exercises options to extend four-year drilling contracts
14:17 GONDAN Shipbuilders hosts launching ceremony for Edda Wind's CSOV C503
13:47 Van Oord, Van Aalsburg partner to further develop circular fascine mattresses
12:13 Snam wins "A" raing in CDP's Suppliers Engagement Rating for efforts against climate change
10:54 ULSTEIN unveils new subsea vessel for offshore energy tasks

2024 March 15

18:07 DNV gives nod to Friede & Goldman BargeRack solution
18:02 New partnership enables faster offshore wind installations in the U.S.
17:53 First production line at ‘World’s Largest Monopile Factory’ to go live in July
17:21 Brunvoll DP2 upgrades for more Mokster vessels
16:55 CMA CGM to suspend its calls at Port au Prince, Haiti
16:03 GEFO's LNG DF chemical tanker Tosca gets Green Award
15:19 CEVA Logistics develops new vehicle logistics business at the Port of Dunkirk
14:11 MPA: SaR operation continues for a missing crew member of the Liberia-flagged UTOPIA
13:07 To develop the Far East it makes sense to build a new shipyard in the country’s eastern regions, President Putin said
12:48 World’s first use of ammonia as a marine fuel in a dual-fuelled ammonia-powered vessel in the Port of Singapore
11:39 COSCO Shipping calls Port of Genoa, Italy with 20,000 TEU vessels on regular basis
10:03 DMC contracted to supply rudder systems for the world’s largest PCTCs

2024 March 14

18:04 Shearwater awarded seismic survey for UK carbon capture and storage project
17:15 UAE, world leaders discuss maritime corridor for aid to Gaza
16:05 Marine fuel sales at Singapore drop to a three-month low in February
15:43 World Shipping Council selects NCB for liner shipping Cargo Safety Program
15:00 ZIM reports results for 2023
14:57 DP World announces 2023 results
14:29 HaiSea unveils new operations facility for the world’s greenest tugboat fleet
13:44 DEME awards KENC with engineering and fabrication scope on multiple offshore wind installation projects
13:25 MABUX: Bunker Outlook, Week 11, 2024
12:43 Wartsila Lifecycle Agreement to support optimised low-emission operations for two P&O Ferries vessels
11:35 Hapag-Lloyd transport volumes up by 0.5% to 11.9 million TEU in 2023
10:51 NYK and Astomos Energy christen new dual-fuel LPG carrier
10:25 Port of Long Beach container volume up 24.1% to 674,723 TEUs in Feb 2024

2024 March 13

18:02 Lebanese, French officials float a plan to rebuild Beirut port nearly 4 years after huge explosion
17:23 Ascenz Marorka obtains type approval for cyber-security from Bureau Veritas for its digital solutions
16:58 USDOT announces $500 mln for ports available through the Port Infrastructure Development Program
15:44 RINA wins contract to create global investment plan for cruise sector
15:23 Hede International Shipping enters the Transpacific container trade
14:43 Concordia Damen wins contract to deliver a CDS2410 River Pusher to Transporte Fluviales Frey Bentos
14:13 CMA CGM Group launches its first loyalty program SEA REWARD
13:13 Cargill posts results of the six-month test period of the world’s first wind-powered ocean vessel
12:24 Rotterdam's Gate Terminal sees need for more LNG bunkering capacity at Rotterdam
11:58 MOL announces delivery of LNG-fueled car carrier CERULEAN ACE
11:24 Panama Canal announces increase in daily slots at Panamax locks