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  • MABUX: Bunker market this morning, Oct 21
  • 2019 October 21 09:24

    MABUX: Bunker market this morning, Oct 21

    The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) continued slight downward trend on Oct.18:

    380 HSFO - USD/MT – 361.02 (-3.77)
    180 HSFO - USD/MT – 404.08 (-3.62)
    MGO - USD/MT – 661.00 (-0.52)


    Meantime, world oil indexes changed insignificant and irregular on Oct.18: concerns about China’s economy outweighed bullish signals from its refining sector.

    Brent for December settlement decreased by $0.49 to $59.42 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for November delivery dropped by $0.15 to $53.78 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $5.64 to WTI. Gasoil for November gained $5.25.

    Today morning oil indexes demonstrate slight downward evolution.

    U.S. oil inventories soared for the latest week, rising much more than the market expected. Crude stockpiles jumped 9.3 million barrels last week compared to expectations for a rise of about 2.9 million barrels. The buildup in U.S. stockpiles comes amid broader concerns of slowing global demand, as U.S.-China trade tensions continue to take a toll on the world-wide economy. At the same time this can pressure OPEC+ members to trigger deeper supply cuts.

    The joint technical committee monitoring a global oil production pact between the Organization of the Petroleum Exporting Countries (OPEC) and partners found that compliance is being exceeded, with cuts for September representing 236% of agreed quotas.  OPEC and its allies, including Russia, have agreed to limit oil output by 1.2 million barrels per day (bpd) until March 2020. OPEC lowered its 2019 global oil demand growth forecast to 0.98 million bpd while leaving its 2020 demand growth estimate unchanged at 1.08 million bpd.

    China’s economic growth slowed to 6% year on year in the third quarter, its weakest for 27-1/2 years and below expectations, dogged by soft factory production and continuing trade tensions with the United States. China’s September refinery throughput, however, was up 9.4% year on year at 56.49 million tonnes, boosted by new refineries and some independent refiners resuming operations after maintenance. Meantime, U.S. and Chinese trade negotiators are working on nailing down a Phase 1 trade deal text for their presidents to sign next month.

    Russian Company Rosneft has temporarily suspended works at one block in Iraq’s semi-autonomous region of Kurdistan due to security concerns because of the blocks’ proximity to the Syrian border. It was reported, that in view of the current unrest in Syria, with the Turkish offensive against the Kurds in northern Syria, Rosneft has decided to temporarily halt works on block 8 because it is close to the Iraqi Kurdistan’s border with Syria. Rosneft continues works on block 11 in Kurdistan. This year the Russian company launched exploration works in Kurdistan. The exploration work is set to continue next year and could take several years to complete.

    The British government insisted on Oct.18 the country will leave the European Union on Oct. 31 despite a letter that Prime Minister Boris Johnson was forced by parliament to send to the bloc requesting a Brexit delay. Johnson’s defeat in the British parliament over the sequencing of the ratification of his deal exposed the prime minister to a law passed by those opposed to a no deal departure, demanding he request a delay until Jan. 31. Johnson sent the request note as required, but unsigned, and added another signed letter arguing against what he cast as a deeply corrosive delay. One of his most senior ministers said Britain would still leave the bloc on Oct. 31.

    More than 30 oil tankers have anchored in the Malacca Strait off Singapore and Malaysia. The flotilla has been expanding for months as traders amass supplies of fuel that comply with new shipping standards IMO 2020. In April, at least five vessels laden with low-sulfur fuel oil and blending components were sitting off Singapore. Traders and bunker oil suppliers have secured fuels that can meet the new specifications, or create a blend comprising oil such as gasoil, low-sulfur fuel oil, low-sulfur crude oil, high-sulfur fuel oil and other components. Crude oil grades such as Australia’s Pyrenees, Vincent, Stag and Barrow Island, Brazil’s Atlanta and Ostra Blend, Congo’s Emeraude Blend, North Sea’s Clair and Thailand’s Wassana are also being hoarded on tankers in the Strait. Lack of storage capacity for 380 HSFO in the region pushed prices for this type of fuel further up in recent weeks.

    Tankers that had been scheduled to install emissions-cutting equipment ahead of stricter pollution standards starting in 2020 have deferred their visits to the dry docks to capitalize on an unexpected surge in freight rates. U.S. sanctions on subsidiaries of vast Chinese shipping fleet Cosco in September sparked a surge in global oil shipping rates as traders scrambled to find non-blacklisted vessels to get their oil to market. The rates for chartering a supertanker from the U.S. Gulf Coast to Singapore hit record highs of more than $17 million and a record $22 million to China earlier this week. The extraordinary spike in freight rates proved too good to miss for some shipowners who were due to send vessels to the dry docks for lengthy retrofitting and maintenance work. The shortage of ships to move crude oil was so acute that some shipowners also switched from carrying so-called 'clean' or refined fuels like gasoline to 'dirty' cargoes that include crude oil, despite the costs of having to clean them later. For scrubbers to be fitted, ships must be sidelined between 30 to 60 days.

    We expect bunker prices may change irregular today in a range of plus-minus 2-4 USD.




2021 December 7

18:15 Ernst Russ AG to acquire further shares in a Fleet Holding Company
17:59 Kuzey Star Shipyard holds steel cutting ceremony for Atomflot’s new floating dock
17:36 Stena Line expands and launches new route between Stockholm Norvik and Hanko
17:15 Boskalis consortium secures EUR 24 million research grant to advance emission-free shipping
16:45 New report highlights regional economic importance of Ports of Stockholm
16:33 LAS Admiral Panteleev of RF Navy’s Pacific Fleet started transition to Vladivostok from Indonesia after participation in ARNEX-2021
16:15 Angola starts CLOV Phase 2 project
15:50 Rosneft signed contract with Indian Oil for supplying up to 2 mln tons of crude oil to India
15:45 Strategic Marine wins additional order for new 42m Fast Crew Boat from Centus Marine
15:27 Ships of RF Navy and Egypt Navy start naval phase of Bridge of Friendship 2021 joint exercise
15:03 Wärtsilä partners with Microsoft to strengthen their Edge platform and industrialise Marine IoT
14:41 NOVATEK and RWE sign MOU on decarbonization and LNG
14:23 ABS grants Alfa Laval the marine industry’s first approval in principle for firing boilers with methanol
14:08 Nonius Engineering supports International Congress “Hydraulic Engineering Structures and Dredging” as its Sponsor
13:50 Cox Marine collaborates with clean maritime consortium to demonstrate world-first diesel-hydrogen outboard
13:22 The leading Russian supertrawler for the Russian Fishery Company has successfully inclined
12:36 Throughput of Rostov-on-Don port in 11M’2021 fell by 15%, year-on-year
12:14 Stena Line to open new daily route to Finland
11:49 Russia joins the Nairobi International Convention on the Removal of Wrecks
11:12 Exports of Sibanthracite Group to India in 2021 to total 3.5 million tonnes of coal and anthracite
11:00 Long Beach and Los Angeles keep ‘Container Dwell Fee’ on hold until Dec. 13
10:51 DSV launches Green Logistics to accelerate the green transition of the industry
10:47 Throughput of Taganrog port in 11M’2021 fell by 2% Y-o-Y
10:24 Average spot market price for Russian M100 product fell to RUB 25,252 pmt
10:06 Flag-raising ceremony held on Norvezhskoye More trawler, first serial factory ship of KMT01 design
09:45 MABUX: Global bunker indexes to turn to firm upward trend on Dec. 07
09:28 Baltic Dry Index as of December 3
09:13 Crude oil prices continue rising

2021 December 6

18:37 The Port of Bergen changes the name of the Hurtigruten terminal
18:22 Preliminary results of Volga Basin cargo traffic – 41.39 million tonnes
18:14 Equinor invests in battery storage company
17:55 ENGIE and Masdar form US$5 billion strategic alliance to drive UAE’s green hydrogen economy
17:38 Moody’s upgrades Global Ports’ rating to Ba1 with stable outlook
17:16 Solstad Offshore announces long-term contracts in Brazil
16:44 Port of HaminaKotka cargo turnover in 11M’2021 fell by 1.5%
16:20 TezMedz and Tabiyat.pk signs contract with Maersk for integrated cold chain solutions
16:05 “K” Line obtains VSPS regarding Australian quarantine for car carrier
15:55 LR and InterManager share new insights into the causes of lifeboat accidents
15:50 Sea Port of Saint-Petersburg upgrades its infrastructure
15:14 Diana Shipping announces the acquisition of a resale new-building Capesize dry bulk vessel
14:57 Arctia’s IB Otso sets off for the Bay of Bothnia as the season’s first icebreaker
14:35 Cargo traffic within Azov-Don Basin of Russia’s IWWs fell by 14.2% in 2021
14:03 Jan De Nul receives the transport & installation for Vesterhav Nord & Syd wind farm in Denmark
13:48 Onezhsky Shipyard lays down sixth crab catching ship for Russian Crab Group
13:16 DOTr, PPA unveil P316 million Zamboanga port expansion
12:42 Cargo transportation by Volga-Don Canal decreased by 10.6% in navigation season 2021
12:14 New technology risks must be tackled despite decade of progress in ship safety, warns DNV
11:57 Сruise ship Peotr Veliky made first technological voyage
11:38 Mohammed bin Rashid and Mohamed bin Zayed launch UAE Rail Program
11:14 IAA PortNews’ summary of previous week news
10:51 MABUX: No firm trend on Global bunker market on Dec 06
10:20 New shipyard for large-capacity facilities should be built in Russia – opinion
09:29 Crude oil market sees recovery of prices
09:12 Baltic Dry Index as of December 3

2021 December 5

15:03 GasLog Ltd. places order at DSME for four 174000m3 gas carriers
13:27 USCG holds annual SaR exercise off Maui
12:33 Port of Felixstowe tops 100 million TEU
11:51 Vuosaari fairway deepening project completed on schedule, safely and under budget
10:47 New regional technology clusters in WA and Qld driving growth in Australia’s hydrogen sector

2021 December 4

15:21 MOL and Flotation Energy to explore offshore floating wind in Japan