• 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)




2024 March 28

16:25 DEME reports 22% increase in the orderbook and a record-high turnover of 3.3 billion euros in 2023
16:14 MABUX: Bunker Outlook, Week 13, 2024
15:41 AD Ports Group announced the opening of Saadiyat Marina & Ferry Terminal and Rabdan Marina
15:11 Sydney invests $11.5 million in two new operational vessels designed by Incat Crowther
14:55 China’s Jinzhao wins Peru $405m port construction contract
14:13 APM Terminals Moín handled six million TEU
13:48 ClassNK grants Innovation Endorsements for Products & Solutions to two innovative initiatives by MOL
13:37 Konecranes launches its flagship Konecranes X-series industrial crane
12:53 United European Car Carriers UECC spearheads collaboration with industry leaders to advance CNSL as a sustainable marine fuel
12:26 Ocean Network Express announces Transpacific service
11:48 Yang Ming announces 2025 Trans-Pacific service network
11:24 Fincantieri signs contract for the supply of two PPAs to Indonesia
10:42 Maersk transported more than 660,000 TEU using clean fuel in 2023
10:23 Documentation delays push industry costs to $3bn
09:48 PONANT and FARWIND Energy partner to develop green hydrogen refueling solutions

2024 March 27

18:22 Bureau Veritas awards world’s first prototype certification for SolarDuck’s floating offshore solar solution
17:58 The recently converted Allseas's shallow water pipelay barge starts preparations for its first commercial project
17:38 The Port of Rotterdam calls on the European Commission and Parliament to focus on actively promoting green energy
15:23 SEFE to become sole shareholder of WIGA
14:53 Ocean Installer secures yet another SLM contract with Equinor
14:23 Cadeler signs offshore wind turbine installation contract for the vessel Wind Scylla
13:42 Carnival Cruise Line orders 5th Excel-class cruise ship
13:11 Maersk and MSC overcharging cargo owners for EU ETS, says T&E
12:52 The Port Authority of Valencia launches the ZAL project in the Port of Valencia
12:11 Clarkson Port Services and Peak Group collaborate to deliver Port Agency services across the North Sea
11:42 Wan Hai Lines holds ship naming ceremony for new vessels
11:24 Consolidated shipping lines EBIT loss was $1.44 billion in Q4 2023: Sea-Intelligence
10:49 Seaspan Shipyards receives long-term contracts for the pre-construction work of the the Canadian Coast Guard's first six multi-mission vessels
10:14 Woodside completes sale of 10% scarborough interest

2024 March 26

18:02 COSCO Shipping Lines introduces new Americas service
17:30 Davie awarded first contract for design of icebreaker fleet under Canada’s National Shipbuilding Strategy
17:04 Sanctions complicate Arctic LNG ship sales, Hanwha Ocean says - Bloomberg
16:57 Terntank places an order for 1+1 additional wind/ methanol-ready hybrid tanker
16:28 BW LNG completes acquisition of two TFDE vessels from Stena Bulk
15:50 Hanwha Ocean develops VR-based special vehicle simulator
15:20 TotalEnergies and SINOPEC join forces to produce sustainable jet fuel at a SINOPEC's refinery
14:52 Wärtsilä Lifecycle Agreement to guarantee operational reliability of new wind farm installation vessel
14:23 Hudong-Zhonghua launches two LNG carriers
13:51 Cargo ship hits Baltimore’s Key Bridge
13:12 Final sanctioned tanker with Russian Sokol oil to reach China port - Reuters
12:42 Adani Ports acquires 95% of Odisha's Gopalpur Port from SP Group for $162 million
12:21 IHI and Yara Clean Ammonia agree to jointly assess clean ammonia business collaboration
11:41 Yara Clean Ammonia and Azane granted safety permit to build world's first low emission ammonia bunkering terminal
11:16 Wartsila and Royal Caribbean Group celebrate 15 years of collaboration on digital transformation
10:46 A global carbon tax on shipping is coming, says ABS Chairman and CEO
10:21 Eni, Fincantieri and RINA establish partnership for maritime transport decarbonization

2024 March 25

18:07 The Maritime and Port Authority of Singapore continues to investigate reports of oil spills off the port of Tuas
17:31 “K” Line, NIPPON HAKUYO and OPT Gate sign an agreement for a new fire detection system for car carriers
17:07 Greek merchant fleet recorded slight decline in January 2024
16:47 Hanwha Ocean Plans to develop green technology and naval ships
16:25 U-Ming Singapore and ITOCHU sign milestone MoU for the joint development of ammonia dual-fuel and de-carbonized vessels
15:34 Svitzer targets methanol-fuelled MAN 175DF-M engine for tug application
15:04 Wallenius Wilhelmsen signs contracts for four 9,300 CEU vessels with China Merchants Jinling Shipyard
14:40 Taiwan International Port to upgrade terminal facility at Kaohsiung
13:59 Сruise ship Carnival Freedom catches fire near Bahamas
12:59 Hanwha Ocean wins 2.4 tln-won order for 8 LNG ships
11:16 Inland Ports meet in Paris to talk about the innovation potential of inland ports
10:50 IMO agrees possible outline for maritime “net-zero framework”
10:24 Hapag-Lloyd to continue to avoid the Red Sea route
09:58 QatarEnergy enters time charter agreements with Nakilat for the operation of 25 LNG vessels

2024 March 24

16:18 Inchgreen Marine Park upgraded as part of £11m investment
15:14 A ribbon-cutting ceremony for Solent Rail Terminal Rail was held at the Port of Southampton
14:08 ESNA and Strategic Marine join forces to offer Surface Effect Ship (“SES”) Crew Transfer Vessels (“CTV”) to the market
13:07 First LNG powered vessel calls at HIP
12:49 Inter-array cable installation completed at Neart na Gaoithe offshore wind farm
11:32 Equinor ASA posts net income at USD 11.9 billion in 2023
09:25 Edda Wind announces the sale of Edda Passat

2024 March 23

17:19 Maersk opens new warehouse facility in Tijuana, Mexico for cross-border capabilities
14:01 Bollinger Shipyard marks keel laying ceremony for 10th Navajo-class T-ATS
13:55 MEYER WERFT and Disney Cruise Line celebrate keel laying