• 2016 June 2 16:00

    MABUX: Bunker prices may continue insignificant mixed movements next week

    The Bunker Review is contributed by Marine Bunker Exchange
     
    No firm trend was formed during the week and the global fuel market is still in a waiting mood. There are some signs that the rebalancing is under way. The latest tightening has come from outages in Nigeria and Libya but these are unlikely to last. Ultimately, the rebalancing remains dependent on an ongoing contraction in U.S. shale-oil production, and current prices are potentially throwing a lifeline to U.S. shale producers. The Organization of Petroleum Exporting Countries is unlikely to set an output target when it meets June 2 as it sticks with Saudi Arabia’s strategy of squeezing out rivals.

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO at the main world hubs) showed insignificant irregular evolutions in the period of May 26 – June 02:
     
    380 HSFO - up from 219.50 to 220,93 USD/MT (+1,43)
    180 HSFO - up from 257.64 to 261.29 USD/MT (+3,65)
    MGO     - up from 477.07 to 479.29 USD/MT (+2,22)

    OPEC members gathering in Vienna June 2 are expected to go along with a Saudi Arabia-led policy focused on squeezing out rivals amid signs the strategy is working. That means the meeting may be less fraught than the previous summit in December, which ended with public criticism of the Saudi position from Venezuela and Iran. The group may also choose a secretary-general to replace Abdalla El-Badri, whose term has been extended after members failed to agree on a successor. If production comes back and there are no efforts from OPEC to support prices by limiting output, that could lead to an easing in prices.  

    There are still signs of division within OPEC as well: Venezuela said the price recovery has had more to do with unexpected outages than a successful OPEC strategy.

    Algeria considers OPEC’s Saudi-led strategy to defend market share and force rival producers out of business is yielding results. As per Algeria, the failure to reach a deal on freezing output in April in Doha represented a politicization of the Organization of Petroleum Exporting Countries not seen since 1973 when Arab producers imposed an embargo that triggered an oil crisis. Algeria itself has consistently opposed the OPEC’s Saudi-led strategy.

    Companies in Canada are resuming operations after Alberta wildfires forced the evacuation of more than 80,000 people from Fort McMurray.  Fires that began early May shut about 1.2 million barrels a day of production in Canada's oil-sands region.

    U.S. crude stockpiles probably dropped 2.5-3.2 million barrels to 535.1 million barrels in the week ended May 27. Crude supplies at Cushing also fell by 686,700 barrels to 66.9 million. Record inventories data has still supported fuel indexes.

    U.S. oil production slipped an 11th week to the lowest level since September 2014: by 24,000 barrels a day to 8.77 million. Rigs targeting crude in the U.S. dropped by two to 316 through May 27 after no change the previous week,. Companies are still cutting the rig count (more than 1,000 machines were idled since the start of last year) and it may take months before any price increase can result in increased oil production.

    China's official factory activity gauge expanded only marginally in May, while a private survey showed conditions deteriorated for a fifteenth straight month. Chinese port congestion and refinery maintenance season will weigh on crude imports over the next few months.

    Libya’s Petroleum Facilities Guard took control of the town of Bin Jawad near the Es Sider and Ras Lanuf oil-loading terminals. Libyan production has fallen to less than 400,000 barrels since armed groups attacked terminals in late 2014, closing them to oil exports. The country pumped as much as 1.6 million barrels a day of crude before the 2011 rebellion.

    In Nigeria the government will seek talks with leaders of the oil-rich Niger River Delta region to end recent violence affecting production. Nigerian crude output has dropped to the lowest level in 27 years as militants increased attacks on pipelines in the Niger River delta.

    We expect next week market will not have any firm trend again. Bunker prices may continue insignificant irregular changes.

    * 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

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17:35 Latvian port equipment manufacturer Bleste introduces new bulk handling ‘bucket’
17:05 Investors upgrade Navios Maritime Partners
16:25 DEME reports 22% increase in the orderbook and a record-high turnover of 3.3 billion euros in 2023
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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
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12:26 Ocean Network Express announces Transpacific service
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2024 March 27

18:22 Bureau Veritas awards world’s first prototype certification for SolarDuck’s floating offshore solar solution
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14:53 Ocean Installer secures yet another SLM contract with Equinor
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12:52 The Port Authority of Valencia launches the ZAL project in the Port of Valencia
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2024 March 26

18:02 COSCO Shipping Lines introduces new Americas service
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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
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12:21 IHI and Yara Clean Ammonia agree to jointly assess clean ammonia business collaboration
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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
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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
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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
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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
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