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  • World bunker price movements to remain mixed next week, expert says
  • 2015 June 18 15:43

    World bunker price movements to remain mixed next week, expert says

    The Bunker Review is contributed by Marine Bunker Exchange

    World bunker prices will continue irregular fluctuations next week as funDamental factors on the market are unchanged.
    Major fuel indexes continued irregular fluctuations during the week with no real driving factors which could be able to set up firm trend on the market. MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO in the main world hubs) for the period of June 11 - June 17 demonstrated slight decline which however could be compensated in a short run:

    380 HSFO - from 338,07 down to 330,43 USD/MT  (-7,64)
    180 HSFO - from 365,43 down to 357.07 USD/MT  (-8,36)
    MGO         - from 624,79 down to 617.93 USD/MT   (-6,86)

    Investors remain convinced that oil markets are oversupplied. The U.S. Energy Information Administration (EIA) estimates global petroleum oversupply at 2.6 million barrels per day at the end of the second quarter of this year, compared with just 1.05 million barrels per day in June 2014. EIA also forecasts world oil demand will rise more than expected this year: by 280 000 barrels per day (bpd) to 1.40 million bpd, bringing demand this year to almost 94 million bpd.

    U.S. inventory draws have declined steadily since April driven by higher refinery runs and lower imports. U.S. stockpiles dropped seventh week by 2.70 million barrels. However gasoline inventories rose unexpectedly and crude oil stocks at the Cushing, Oklahoma, hub rose for the first time since April, while refinery utilization fell.
    U.S. Energy Secretary Ernest Moniz suggested the Strategic Petroleum Reserve should be tapped to ease global oil-price shocks and not be limited to easing U.S. supply emergencies. As per him, rising U.S. crude production gives the nation more flexibility in how it uses the reserve. Moniz plan is to put crude from the reserve into the domestic market, not for export, which may provide the U.S. with valuable protections from oil-market disruptions. Any changes in reserve policy would require congressional approval.

    The number of oil rigs in the United States declined another week, denying the market a sign that producers have started ramping up production. Energy firms pulled another seven rigs from U.S. oil fields - the most since late May. That was the 27th straight weekly decline, bringing the total rig count down to 635, the lowest since August 2010. Meanwhile, U.S. crude production climbed to over 9.6 million barrels a day last week, its highest level since the early 1970s.

    Markets are closely tracking the Greek debt crisis. The talks concerning the release of the 7.2 billion euros ($8.1 billion) in rescue funds remaining in Greece`s bailout have dragged on for five months. However, negotiations in Brussels between Greece and its creditors collapsed after just 45 minutes last Sunday. Both sides insisted they were willing to engage, but without making any steps to change the situation. It brings Athens only two weeks away from a default on its debt, which could be followed by its exit from the eurozone.

    Potential price rally is also under threat as Saudi Arabia said it was ready to raise output further if needed and as OPEC’s biggest members pump crude at a record pace. Saudi Arabia raised production in May to 10.25 million barrels a day from 10.16 million in April. Iraq increased to 3.85 million a day from 3.75 million, and the U.A.E kept output at 2.87 million barrels a day. Global oil supply was about 96 million barrels. The gains still leave OPEC’s supply about 1.3 million barrels above its collective output target of 30 million barrels a day.

    The glut could rise further if Iran and world powers reach an accord on the Islamic Republic’s nuclear program by June 30 deadline. Imports of Iranian crude reached 1.4 million barrels a day in May, up 235,000 a day from April and the highest level since June 2012 when new restrictions on oil trade were imposed by the U.S. and European Union. The nation pumped 2.85 million barrels a day last month and is capable to produce 3.4 million to 3.6 million barrels a day after sanctions being lifted. Iran is also thought to be storing as much as 40 million barrels of oil on supertankers at sea, ready for a sales drive.

    Islamic State (IS) strengthened its hold in central Libya, seizing territory near the country’s largest oil terminal in Sirte – former President Muammar Qaddafi’s hometown. IS already controls the desert town of Naufaliya, which is only about 30 miles from Es Sider and neighboring Ras Lanuf, Libya’s biggest and third-biggest export terminals. Both have been closed since December, when they were caught up in factional fighting. Crude output, which averaged more than 1.5 million barrels a day during Qaddafi’s last decade, slumped to 405,000 barrels last month.

    In absentia of real driving factors on the market we expect world bunker prices will continue irregular changes next week.

    *  MGO LS
    All prices stated in USD / Mton
    All time high Brent = $147.50 (July 11, 2008)
    All time high Light crude (WTI) = $147.27 (July 11, 2008)

2023 September 26

18:07 Fincantieri signs a EUR 800 million facility agreement
17:53 Shortage of sea transport vessels in Russia estimated at over 400 units
17:36 MV Ballard becomes first Klaveness Combination Carriers vessel equipped with Silverstream Technologies air lubrication system
17:16 Shell completes Gibraltar's first cruise ship LNG bunkering
17:09 Okskaya Sudoverf shipyard launches second bilge water removing ship of project RST38 for Rosmorport
16:45 Port of Kiel opens two shore power facilities at the Ostuferhafen
16:28 Scandlines Germany officially receives the first intermediate ROV class certificate without the presence of conventional divers
16:07 Murmansk Commercial Seaport handled 1 million tonnes of coastwise cargo year-to-date
15:40 HMM introduces direct service between Korea and Indonesia
15:24 MOL and Idemitsu to launch demonstration test on recycling of marine plastic waste
14:32 Crowley Engineering Services wins design, production contracts for Crescent Towing
14:14 Admiral Makarov SUMIS to install simulator for training specialists of maritime autonomous surface ships navigation
13:42 Bunker One and Acelen launch bunkering operations outside the Port of Itaqui, Brazil
13:11 Port Houston container volume down 20% in August 2023
12:55 RZD and FESCO achieved record high daily result having dispatched 1.3 thousand TEU in 10 container trains from Commercial Port of Vladivostok
12:41 JSE, “K”Line, MOL and NYK partner to establish global liquefied hydrogen supply chain
12:21 MarineMax to expand superyacht services in Greece
11:40 Light Structures teams up with DNV to deliver structural integrity and digital twin services
11:27 2nd Ship Repair, Modernization and Components Conference opened in Saint-Petersburg
11:10 Wind-propulsion installations poised to surpass 50 mark in early 2024
11:01 Aktau Sea Commercial Port (Kazakhstan) obtains status of internationally important port
10:45 Bay-Houston Towing announces purchase of Port Arthur and Lake Charles operations from Seabulk
10:23 MAN Energy Solutions has filed 37 ammonia tech patent applications
09:58 “K” Line announces acquisition of third-party certification for CO2 reduction using marine biofuels and completion of a certificate issuance system
09:42 Mechel reports restructuring 320-million-dollar loan
09:19 RF Navy's Northern Fleet trains countering maritime unmanned vehicles

2023 September 25

18:07 Meyer Werft starts construction of the new cruise ship for NYK Cruises
17:35 Port of Vancouver cargo volumes increase by 11% in H1 2023
17:24 Number of ships servicing FESCO’s direct line between Saint-Petersburg and ports of China and India to double by year end
17:13 MOL, PETRONAS and MISC set the stage for the development of liquefied CO2 carriers
16:18 Throughput of Turkish ports in 8M’23 totaled 349.3 million tonnes, down 4.3% YoY
15:31 Ecospray's two Carbon Capture technologies successfully tested onboard
15:01 ADNOC and TAQA reach financial close on sustainable water supply project
14:53 Samara based Nefteflot to build three multipurpose dry cargo ships of RSD34L design
14:35 ITOCHU executes MoU for ammonia bunkering safety for ammonia-fueled container carrier
14:12 Alfa Laval joins a project to develop and produce the world's first 10 MW green hydrogen production facility offshore in the North Sea
13:48 Babcock’s LGE business wins world first contract for ecoCO2 cargo handling system
13:20 Oboronlogistics and Chinese manufacturers of spare parts and equipment reached preliminary agreements on direct supplies
12:14 All 120 workers rescued after Nile cruise ship accident in Egypt
11:42 China's shipbuilding output up 16.9 percent to 27.98 dwt in the first eight months of this year
11:24 COSL enters into the rigs purchase and sale contracts
11:13 Astrakhan based shipyard of USC launches chemical tanker Azimuth-1
10:58 Port of Rotterdam and Yokogawa start study to increase energy and resource efficiency across industries
10:27 COSCO SHIPPING launches the automotive industry digital supply chain platform
09:42 Port of Liepaja throughput in 8M’2023 fell by 9% Y-o-Y to 4.57 million tonnes
09:18 Total throughput of China’s sea and river ports in 8M’2023 rose by 8.4% YoY

2023 September 24

17:26 Pyxis Tankers announces sale of product tanker
15:47 ITOCHU announces execution of MoU for ammonia bunkering safety for ammonia-fueled container carrier
14:19 Elyse Energy announces the opening of an e-methanol plant on the Roches-Roussillon chemical hub
12:05 Joint development of AI-powered automatic daft survey application
11:58 Candela's C-8 foiling craft covered 420 nm in a day
10:31 ITOCHU signs MoU with Peninsula to develop ammonia bunkering in Spain

2023 September 23

15:23 Hapag-Lloyd to enhance connectivity at sea with Starlink satellite Internet
13:41 Hanwha Ocean inks 4-way deal on development of liquefied CO2 carrier
12:09 Vessels are among the first in the world to demonstrate the potential of hydrogen fuel cells
10:17 ABB to power Samskip’s new hydrogen-fueled container vessels

2023 September 22

19:41 IAA PortNews’ summary of past week news
18:00 PETRONAS, MOL and MISC to jointly develop LCO2 carriers for CCS projects
17:06 Ports of Los Angeles, Long Beach, and Shanghai unveil Implementation Plan Outline for first trans-Pacific green shipping corridor
16:32 Workers protest against HHLA’s partial sale to MSC
16:25 ZIM offers direct service between WCSA and Savannah
16:07 Exports of Russian fish products in 8M’23 increased by 4% YoY to 1.4 million tonnes
15:49 Construction begins on Crowley-ESVAGT wind farm service vessel
15:21 APM Terminals Apapa – Ibdan rail connection opens for congestion-free business
14:51 Ascenz Marorka weather routing solution to equip the entire fleet of Clean Products Tankers Alliance
14:22 Guangzhou Port Group and Jiangsu Port Group sign a strategic cooperation framework agreement
13:59 Throughput of port Shanghai (China) in 8M’2023 rose by 10% YoY
13:41 A.P. Moller – Maersk opens new warehouse in Douala, Cameroon
13:12 Samsung Heavy Industries develops laser high-speed welding robot for LNG vessels
12:54 Container throughput of Hong Kong port (China) in 8M’2023 fell by 15% YoY