• 2016 April 7 15:14

    All quiet in global bunker market: volatility, with no clear directions

    The Bunker Review is contributed by Marine Bunker Exchange

    Bunker prices: any firm direction is still opened to question.

    World fuel indexes have swung between gains and losses since last week amid speculation about whether an agreement can be reached at the meeting in Doha and U.S. inventory and production data. Meanwhile there are some signs that the market is slowly moving away from Contango into Backwardation territory, which suggests the market expects the rally of fuel prices may have stalled and they could start coming down again in the coming months.

    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 Apr.01 – 07 had slight downward trend:

    380 HSFO – down from 163,21 to 159,57 USD/MT    (-3,64)
    180 HSFO – down from 208,57 to 203.57 USD/MT     (-5,00)
    MGO         – down from 396,36 to 388.71 USD/MT     (-7,65)

    The main supporting factor on the market is still the expectations of OPEC and non-OPEC possible freezing output: major oil-producing nations will meet in Doha on April 17. Saudi Arabia’s statement that the country will freeze output only if Iran follows suit put in doubt the prospects of a proposed deal. Kuwait on the contrary said it expected major producers to agree to freeze output, even as Iran continued to balk at the plan. According to some reports, oil-producing countries are discussing a draft resolution for the Doha meeting, which may lead to a decision on tools to monitor output levels.

    The Organization of Petroleum Exporting Countries boosted production by 64,000 barrels to 33.09 million a day last month as Iraqi output gained and Iran pumped at the highest level in almost four years. Saudi Arabia trimmed output by 10,000 barrels a day to 10.19 million and is keeping output almost flat at January levels. Iraqi production rose by 150,000 barrels a day to 4.35 million in March while the country pumped 4.51 million barrels a day in January, the highest level from 1989.  

    Iran has expressed determination to continue increasing its oil production and ex-ports until it regains its pre-sanction market position. So Iran has rejected freezing its output at January levels, which OPEC secondary sources have estimated to be 2.93 million barrels per day. As per forecast, the country's crude output would reach four million barrels per day by March 2017. It is also reported that Iran's oil exports surpassed 2 million bpd at the moment.

    Russian production of crude and a light oil called condensate climbed 2.1 percent in March from a year earlier to 10.912 million barrels a day. That narrowly surpassed the previous high of 10.910 million barrels in January. Exports rose 5.1 percent from a year earlier to 5.59 million barrels a day in March. Russia’s position on freezing oil production is unchanged: the country is proposing production be capped, not ex-ports.

    U.S. crude stockpiles dropped 4.94 million barrels last week to 529. 9 million. Refineries processed the most crude in three months as output and imports declined. Meantime,  refineries bolstered operating rates by 1 percentage point to 91.4 percent of capacity. U.S. refiners typically increase utilization in April as they finish maintenance before the summer peak driving season. Rigs targeting crude in the U.S. have fallen to 362, the least since September 2009. More than 1,100 oil rigs have been parked since the start of last year. As a result, production fell by 14,000 barrels a day to 9.008 million, the lowest since November 2014. Now refineries are buying foreign oil to replace the lost U.S. output—and are storing much of the less-expensive imported oil to sell when prices rise.

    We expect world fuel market will keep next week high volatility ranges and further trend will be greatly depended on the progress of freezing oil production deal. Bunker prices may have short spikes while any firm direction is still opened 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)

2021 June 14

17:46 Fincantieri and MSC celebrate the start of construction of “Explora I”,
15:52 ABS and 22 industry players to study ammonia as an alternative marine fuel
15:18 ICS Guidance for Ship Operators and Roadmap for vaccination of seafarers
14:09 Bollinger submits proposal for U.S. Coast Guard Heritage-class offshore patrol cutter
13:19 Genco to jointly study ammonia as an alternative marine fuel
12:31 Wärtsilä brings Power-to-X technology to World Expo
11:57 Trafigura joins cross industry study into the adoption of green ammonia as an alternative marine fuel
11:24 DFDS: Freight up 31% following lockdowns in 2020
10:32 SEACOR Marine announces debt payoff agreement
09:47 Kick off “Joint Study” framework for studying ammonia as an alternative marine fuel
09:13 MABUX: bunker indexes may change irregularly on June 14

2021 June 13

15:31 Petrobras signs contract for the supply of eighth Búzios unit
14:18 Lyon Shipyard to invest $24.4 million to expand its operation in the City of Norfolk
13:29 Shearwater GeoServices recycles Western Trident as part of its fleet renewal strategy
12:41 MCA to carry out unannounced inspections of fishing vessels
11:42 The 126-passenger expedition cruise vessel National Geographic Resolution hits the water
10:56 Saipem: Inauguration of Saipem Guyana offshore construction facility in Georgetown

2021 June 12

16:09 Fred. Olsen Cruise Lines unveils brand new sailings aboard new ships Bolette and Borealis in 2022
14:21 "Blowdown" to reduce risk and raise decommissioning progress
13:42 Roambee announces a strategic investment from and partnership with PSA unboXed
13:19 Belfast Harbour awards £25,000 to community projects
12:41 Maurice GEORGES named as new Chair of the Executive Board of Dunkerque-Port
11:38 AIDA Cruises resumes holiday voyages from July 29, 2021
10:52 OptiLink: A digital revolution in ballast water management

2021 June 11

18:07 LNG consumption as a marine fuel has almost doubled in 2020
17:31 Hapag-Lloyd to provide full transparency on vessel arrivals
17:09 MOL joins international think tank and accelerate development for carbon capture, utilization and storage
16:58 GTT obtains tank design order for two new LNG carriers from Samsung Heavy Industries
16:52 Shipping industry welcomes Nigeria’s creation of ‘Deep Blue’ to stamp out piracy in the Gulf of Guinea
16:24 Stena Line will move its Europoort-Killingholme service to Immingham
16:00 Yantar shipyard to build rescue ship of Project MPSV06M for Marine Recue Service
15:36 Sea Port of Saint-Petersburg hosts introductory practical training for students
15:13 The Port of Rotterdam Authority, Customs, Fresh Produce Centre and Portbase join forces to facilitate the growth market of refrigerated products
14:25 Seanergy takes delivery of two Capesize vessels with prompt commencement of period charters
13:51 Total throughput at the ports of Bremen increases once again during Q1 4 June 2021
13:32 Roman Gorgutsa appointed as General Director of Morstroytechnology
13:28 Mitsui E&S Machinery and 22 industry players kick off studying ammonia as an alternative marine fuel
13:04 MOL and ACSL use flying drone to conduct autonomous inspection of vessel holds under non GNSS and dark environment
12:49 Port of Los Angeles becames the first port in the Western Hemisphere to process 10 million container units in a 12‑month period
12:38 Oboronlogistics receives RS certificate on safety management of cargo ship Sparta
12:14 CNES and CMA CGM sign unique partnership agreement to spawn innovative solutions for shipping, logistics and the space industry
12:01 APM Terminals continues roll-out of digital export processing at Russian terminals
11:57 Russian Railways: Loading of export cargo bound for domestic ports grew by 8% in 5M’21
11:34 RS and GTT sign new cooperation agreement
11:33 Xeneta selects CLIVE Data Services’ ‘dynamic loadfactor’ data and analyses to deliver complete air cargo market intelligence
11:11 Stagnation in R&D investment creating unacceptable risk for industry zero emissions future - ICS
10:50 Throughput of port Riga (Latvia) in 5M’2021 dropped by 15.1%
10:29 Rosneft agrees heads of terms to sell a stake in the Vostok Oil Project to a consortium of Vitol and Mercantile & Maritime
10:08 DRAX and Mitsubishi Heavy Industries sign pioneering deal towards delivery of the world’s largest negative emissions project
09:52 Throughput of Russian seaports in 5M’2021 fell by 2.7% Y-o-Y
09:40 Oil prices continue decreasing
09:23 Baltic Dry Index as of June 10
09:16 MABUX: Global bunker prices may rise slightly on June 11.
09:04 The port of Rotterdam Authority intends to build brand new port information centre
08:02 Rolls-Royce to showcase future South Korean naval power and propulsion

2021 June 10

18:45 Equinor sells its refining business in Denmark to Klesch
18:25 Rolls-Royce builds new fuel cell demonstrator to ensure electricity supplies
18:05 DNV predicts that marine finfish production in deeper waters offshore will take a 13% market share in 2050
18:00 Comprehensive programme on development of Yamal resource potential to be developed by October 2021
17:51 Contract awards for PSVs in UK