• 2019 February 27 11:18

    MABUX expects IFO, MGO products price to rise as of Feb 27

    The Bunker Review was contributed by Marine Bunker Exchange

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) dropped on Feb.26:

    380 HSFO - USD/MT - 411.14(-9.07)
    180 HSFO - USD/MT - 457.86(-8.43)
    MGO        
    - USD/MT - 639.64(-6.57)

    Meantime, world oil indexes rose on Feb.26 as Saudi Arabia and the rest of OPEC were expected to stick to their production cuts, despite renewed pressure from U.S. President Donald Trump.

    Brent for April settlement increased by $0.45 to $65.21 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April delivery rose by $0.02 to $55.50 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 9.71 to WTI. Gasoil for March delivery gained $8.75.

    Today morning oil indexes continue upward evolution after a report of declining U.S. crude inventories.

    The American Petroleum Institute (API) reported a surprise draw in crude oil inventory of 4.2 million barrels for the week ending February 22, coming in under analyst expectations that predicted that crude oil inventories would build by 2.842 million barrels. US crude oil production as estimated by the Energy Information Administration showed that production for the week ending February 15 - the latest information available - averaged 12 million barrels per day - another high for the US, breaking yet another psychological barrier. The EIA report on crude oil inventories is due to be released later today.

    Goldman Sachs said, Brent Crude oil prices could reach $70 to $75 a barrel in the near term, with an upside potential of exceeding the $67.50 a barrel forecast made earlier this month, as the oil market continues to tighten significantly. Yet, Goldman Sachs sees a possible Brent Crude jump into the $70s as fleeting, because U.S. oil exports and a possible easing of OPEC’s production cuts in the second half of the year could cap the bullish sentiment. According to the bank, OPEC’s cuts and possible acceleration of Venezuela’s supply disruptions will support oil prices in the coming months.

    President Trump cited significant progress in his decision to delay the implementation of tariffs on Chinese goods. A comprehensive trade deal remains rather difficult task, but the Trump administration is keen to dial back on the trade war. The development removes, for the time being, one of the greatest bearish factors facing the global fuel market.  

    Venezuela has reportedly been forced to pay heavy premiums for fuel imports from Russia and Europe. The U.S. cut off shipments of diluents to the country, and PDVSA has had to look elsewhere, but has been forced to pay higher prices as many sellers around the world decline to do business with the company. Besides, Venezuela is reportedly running out of storage space being unable to find enough buyers for its crude oil. As per estimations, more than 8 million barrels of oil are stashed on roughly 16 ships sitting idle along the country’s coast.

    Recently, tanker demand and rates have highlighted shifting supply patterns and have sparked a bit of a worry about OPEC’s compliance rates. Tanker rates changed from a low of US$15,000 per day earlier in February to double that last week. This rebound caused a knee-jerk reaction in traders, immediately concluding that OPEC producers were failing in their production cut agreement: higher rates mean more demand for tankers and this means more crude coming into the market, normally. Another bullish factor for oil demand and tanker demand is the new set of emission regulations from the International Maritime Organization (coming into effect next year), which will reduce the maximum allowed amount of sulfur in maritime vessel emissions to 0.5 percent from 3.5 percent. It may cause a boom in demand for low-sulfur bunkering fuel, and, accordingly, a boom in demand for the crude that is used to make it. As per forecasts, daily tanker rates will average US$29,200.

    Energy traders are starting to make plans for the possibility of a chaotic situation as the Brexit plan is still rather obscured with only a few weeks before the UK officially exits the European Union. Because of the links to the continent for natural gas, carbon allowances, and electricity, the ramifications for a no-deal Brexit could be significant.

    Shell, the world’s largest LNG buyer and seller, in its annual LNG report forecast that global LNG trade will rise 11 percent to 354 million tonnes this year as new facilities in Australia, the U.S., Russia and elsewhere increase supplies to Europe and Asia. More countries are also building LNG import or receiving terminals. As per Shell, LNG trade rose by 27 million tonnes last year, with Chinese demand growth accounting for 16 million tonnes of those volumes. The Asia-Pacific region accounts for 72 percent of global LNG demand, with that amount projected to soon increase to as much as 75 percent. However, some of this demand growth will not only come from China, but India, Pakistan, Bangladesh, Thailand, and in time the Philippines, and Vietnam. The Philippines and Vietnam, however, have yet to construct their first LNG receiving terminals. Meantime, LNG buyers move away from signing longer-term offtake deals: LNG spot trade amounted to 1,400 cargoes in 2018 which was close to 30 percent of the global market compared to 25 percent in 2017.

    We expect bunker prices may slightly rise today in a range of plus 1-3 USD for IFO and plus 5-7 USD for MGO.




2020 August 3

18:43 CMA CGM announces Peak Season Surcharge rates from North Europe to Indian Subcontinent
18:06 Total seven-month cargo traffic in Azov-Don basin in Jan-Jul down 6%
17:55 Inmarsat, Thetius and Shell Shipping and Maritime launch 'Crew Welfare Open Innovation Challenge'
17:25 The PV300 MS Mustai Karim leaves Krasnoye Sormovo Shipyard basin, sets sail for St. Petersburg
16:42 Spot market price for Russian M100 product ended week higher
16:06 Russian Gov’t approves regulation on crab boats construction incentives
15:32 Kalmar delivers four medium and heavy forklifts to support Yizheng Port in meeting safety and environmental requirements
15:26 RZD seven-month loaded freight down 4.4%
14:18 Ust-Luga Company wins the Ust-Luga Cup 2020
13:24 Borr Drilling Limited enters into a new contract and LOIs for three rigs
13:08 Long-awaited project of Kalmykia’s Lagan Port becomes part of the federal transport territorial planning
12:46 MSC Cruises and Palumbo Group form joint venture to operate the Palumbo Malta Shipyard
12:23 OHT wins contract for transport and installation of foundations at Dogger Bank
12:20 RZD to resume traffic via new rail bridge across the Kola as of October 1
11:46 Eagle Bulk reports the successful resolution of security incident onboard vessel
11:10 Buyan-class corvette Grayvoron departs for Novorossiysk sea trials base
09:48 Crude futures prices edge down
09:41 MABUX: Bunker market this morning, Aug 03
09:16 Baltic Dry Index as of July 31

2020 August 2

16:03 Kirby Corporation announces 2Q, 2020 Results
15:31 Bollinger delivers second of three USCG FRCs to be home-ported in Guam
14:37 Dennis de Bruin appointed Managing Director of Commercial Shipping Europe
13:52 ABS supports global offshore wind development with updated guidance
12:35 USCG sets port condition Zulu for Ports of Miami and Key West
11:24 Tony Goldsmith announced as new head of marine at law firm Hill Dickinson as David Wareing steps down
10:52 Sea Machines partners with Maine Maritime Academy & MARAD to include intelligent vessel systems in curriculum

2020 August 1

14:21 U.S. appoints coordinator for the Arctic Region
13:14 CMA CGM announces GRR for Asia-West Africa trade
12:44 Polarcus awarded 3D project in Asia Pacific
11:31 Pacific Basin announces 2020 interim results
10:53 EBRD supports decarbonisation of energy sector in Cyprus

2020 July 31

18:26 Fincantieri BOD approves 1H 2020 results
18:07 Vostochnaya Verf to launch 03141-series first crab catcher in autumn 2020
17:36 Holland America Line changes name of newbuild to Iconic Rotterdam and designates it the new flagship
17:07 October Revolution Shipyard rolls out small seiner for a Kamchatka fishing company
17:06 Alfa Lift signs contract for transport and installation of foundations at Dogger Bank
16:44 Ship recycling in Bangladesh leaps forward with third phase of key project signed
16:05 Cox production diesel outboards make their way to North America
15:36 Port of Vancouver USA receives longest wind blades ever
14:42 USCG medevacs mariner 35 miles offshore Freeport, Texas
13:44 OOCL announces new China Indonesia Philippines service
13:39 Construction of A45-90.2 series passenger ship duo kicked off at SNSZ Shipyard
12:45 Petrotrans accepts delivery of third dry cargo ship of Project RSD59
12:10 McNetiq launches new magnetic anchors for fall protection
11:09 CMA CGM announces rates from China to Middle East Gulf
10:00 DP World Komatipoort becomes the first dry port east of Gauteng
09:46 Baltic Dry Index as of July 30
09:32 Crude futures prices climb
09:08 EMSA and ECDC issue guidance in response to COVID-19 challenges
08:51 Bunker Market this morning, 31st July, 2020
08:46 Australia bans bulk carrier TW Hamburg for wage exploitation

2020 July 30

18:24 DP World volumes down 3.9% in 1H2020
18:04 $300 billion T&L industry is still in infancy of digital transformation - Lux Research
17:43 Port of San Diego establishes Foreign Trade Zone at Tenth Avenue Marine Terminal
17:23 Association of River Ports and Ship Owners celebrates its 25th anniversary
16:04 Russia should join the Nairobi Convention – Transport Ministry
16:03 Aimo Park Finland selected to build customer-centric parking at Helsinki harbours
15:25 APM Terminals first to launch fully digital export management system in Russia
15:04 Russian Gov’t to regulate determining evaluation costs of domestically built ships
14:17 MABUX Weekly Viewpoint