• 2016 March 3 16:09

    Bunker prices near term trend remains uncertain, expert says

    The Bunker Review is contributed by Marine Bunker Exchange

    MABUX: "Any firm trend in world bunker prices is still open to question".

    World fuel indexes did not have any firm trend during the week.  The factor sup-ported the market was increasing talk among the participants that oil prices may have bottomed out with Saudi Arabia and some other producers including Russia planning an oil output freeze at January highs. The International Energy Agency predicts the global oil market is expected to begin rebalancing in 2017 as US out-put is set to decline under pressure from low oil prices.

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO at the main world hubs) in the period Feb. 26 - Mar.03 showed slight upward changes:

    380 HSFO - up from 141,14 to 147,07 USD/MT (+5,93)
    180 HSFO
    - up from 187,50 to 190.21 USD/MT (+2,71)
    MGO         - up from 360,50 to 370.86 USD/MT (+10,36)

    World fuel indexes demonstrated some signs to turn into upward trend supporting by speculation that some producers will complete an accord to freeze output. Russia said the oil output freeze would need to last a minimum of 12 months to support prices. As per Russia, cuts could be more effective, but would be difficult. Russia considers that if no agreement is found and those who have the ability to increase production continue to increase it, crude prices won’t recover for long.

    As a sign of a good will, Russia’s top oil producers met with President Vladimir Putin on Mar.01 to pledge their support for a plan to freeze output at January levels. The idea was to fix Russia's 2016 production level at that of January, which was a post-Soviet record of 10.80 million barrels per day on average (Russian oil output stood at 10.88 million barrels per day in February). However, disappointment that there was no output cut, and scepticism that such a freeze could be agreed, has contributed to recent market volatility.

    Besides, Russia’s manufacturing industry deteriorated more than forecast in February as new export orders declined caused by currency weakness and cheap oil. The Purchasing Manager’s Index fell for a third month, dropping to 49.3 from 49.8 in January.

    As for OPEC, forecast says cartel crude production slipped in February by 79,000 barrels to 33.06 million a day. Nigeria and Iraq led declines. Nigeria’s production fell 139,000 barrels a day to 1.889 million: the output is volatile because of political unrest and theft in the Niger River delta, the main oil-producing region. Iraqi production dropped by 125,000 barrels a day to 4.385 million this month (it was pumped 4.51 million barrels a day in January).

    Iran remains the main obstacle to a global output freeze. Iranian output rose by 140,000 barrels a day to 3 million, the most since July 2012. The Islamic republic is seeking to regain market share after sanctions were removed last month upon completion of an agreement limiting its nuclear program.

    In the U.S. crude inventories rose by 10.37 million to about 518 million barrels in the week ended Feb. 26. That’s the highest level in weekly data going back to 1982. Stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest U.S. oil-storage hub, also increased by 1.19 million barrels last week to 66.3 million barrels, the highest weekly level since data starting in 2004. U.S. refineries used 88.3 percent of their capacity last week, up from 87.3 percent the previous week. Meanwhile, rigs targeting oil in the U.S. fell by another 13 to 400, after more than 100 were idled since the start of the year. It marks the 10th straight week of declines in the number of working rigs.

    World fuel prices were underpinned by speculation that monetary stimulus could support economic growth in China. The People’s Bank of China cut the amount of cash the nation’s lenders must lock away. The move marked the first time in four months that the central bank has used one of its traditional monetary-easing tools, despite mounting signs of a weaker economy.

    The global oversupply on the world market caused problems in the biggest world hubs. The queue of ships waiting outside Europe’s biggest port and oil-trading hub of Rotterdam has grown to the longest in seven years: as many as 50 oil tankers - because storage sites are almost full. Besides, traders are taking advantage of a market contango by buying oil cheap, storing it and selling the commodity later. On Feb. 19 crude oil in storage tanks in Rotterdam stood at 51.3 million, the highest for the time of year in data starting in 2013.

    We expect further trend on the world fuel market to be greatly depended on the progress of freezing oil production deal as well as on the situation with oil production in the U.S. Bunker prices may have short spikes while any firm direction is still open to question.

    *  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)


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
10:43 Thailand's Department of Marine and Coastal Resources takes delivery of a new research vessel
10:27 The United States exported a record volume of natural gas in 2023
09:58 TECO 2030 raises NOK 43 million and partners up with Advait in India

2024 April 16

18:04 HD KSOE attains 73% of annual order target in 100 days
17:31 Anglo-Eastern buys Euronav ship manager
17:06 Navig8 takes delivery of the second of six newbuild MRs with emission reducing technology
16:38 IMO’s Facilitation Committee tackles digitalization and autonomous shipping
16:12 World’s largest car carriers ordered with MAN Energy Solutions propulsion package
15:46 Hapag-Lloyd and Seaspan to retrofit five vessels to methanol propulsion
14:13 Asyad Shipping and OQ8 successfully complete first-of-its-kind blended crude oil delivery from Mina Al Fahal to Duqm Refinery
13:54 Hapag-Lloyd unveils its new Strategy 2030
13:14 Singapore aims for over 1 mln tons of low-carbon methanol bunker supply by 2030
12:43 Trafigura to commercially deploy Daphne Technology’s PureMetrics on LNG carrier for precise MRV and optimisation of GHG emissions
12:15 All 12 people rescued from fire on board Tanzanian-flagged cargo ship in Singapore waters
11:49 Drydocks World steel cutting ceremony marks start of UK Norfolk Vanguard Offshore Wind Platforms project
11:23 North Pacific Green Corridor Consortium aims to decarbonize transportation corridor between Canada, Japan and South Korea
10:48 Wartsila offers new high-performance thruster and propulsion control solution package
10:25 Port of Long Beach container volume up 8.3% to 654,082 TEUs in March 2024
09:58 Kalypso Offshore Energy signs LOI with Royal IHC

2024 April 15

18:04 Container shipping costs of S. Korea-EU route surge 40 pct amid Red Sea crisis
17:21 HMM to expand container ship fleet by 2030
17:09 Singapore retains its position as the world's leading maritime city
16:47 Iran says MSC Aries vessel seized for 'violating maritime laws'
16:24 ICTSI gets PPA OK to operate Iloilo Port
15:21 DEME’s offshore installation vessel ‘Orion’ successfully completes the near 15 MW turbine foundation installation project in Scotland and heads to US
14:55 Meriaura orders two biofuel powered 6750 DWT cargo vessels from Royal Bodewes shipyard
14:35 Methanol-fuelled MAN 21/31DF-M GenSet secures first propulsion order
13:32 Port of Valencia export freights grow by 2.13% in March 2024
12:48 Seatrium and Shell inks MOU to further collaborate on floating production systems
12:24 Seaspan launches second LNG bunkering vessel to deliver low-carbon energy solutions to the West Coast
11:57 Japan's 1st coastal module carrier to transport offshore wind turbine foundation components
10:36 EST-Floattech to provide the battery system for the purpose-built electric-landing utility vessel

2024 April 14

16:02 Shanghai's ship exports see considerable growth in Jan-Feb
14:13 Stena Drilling secures 1-well firm programme with Energean for Stena Forth in Morocco
12:07 GSBN: Lack of digital processes in shipping complicates decarbonization game
10:22 Panama Canal expects return to normal transit capacity by 2025

2024 April 13

15:04 Subsea7 awarded contract in the Gulf of Mexico
13:51 Shanghai Electric’s 'ZHI ZHEN 100' excels thorough offshore equipment test
11:18 WSC: Updated version released of “Prevention of Pest Contamination of Containers: Joint Industry Guidelines for the Cleaning of Containers”
09:43 Financiers and insurers ready to support electrification of the domestic harbour craft sector

2024 April 12

18:02 The first LNG bunkering operation performed at Klaipeda Port
17:32 Nexans announces keel laying ceremony for the CLV vessel
17:19 Arctia to map offshore wind farm area in Norway
17:17 SBM Offshore to construct and install FPSO Jaguar
16:46 OOIL's revenue decreases by 9% in Q1 2024
16:13 Wan Hai Lines holds ship naming ceremony for new vessels
14:45 Oil exports from Russia's Baltic ports set to rise 5% in April - Reuters
12:49 MABUX: Bunker Outlook, Week 15, 2024.
11:41 PaxOcean Group starts construction of the first all-electric tug and supply boat
11:27 MOL inaugurates the largest green hydrogen plant in Central and Eastern Europe
10:58 NYK set to achieve world's first truck-to-ship fuel ammonia bunkering

2024 April 11

18:03 INFODAS granted world’s first type approval for software-defined data diode
17:31 The Maritime and Port Authority of Singapore receives 19 proposals to support early adopters of electric port vessels
17:03 Japanese joint venture explores MAN B&W 60-bore ammonia engine for bulker
16:45 WTO forecasts rebound in global trade but warns of downside risks
16:02 Hitachi Zosen Corporation, MOL and Yanmar Power Technology achieve a 93.8% reduction in methane slip from LNG-powered vessels
15:42 MOL holds naming and launching ceremony for the 1st LNG-fueled ferry on Oarai-Tomakomai route
15:18 Bahamas port goes electric with Konecranes Gottwald Generation 6 Mobile Harbor Crane