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  • MABUX: Bunker market this morning, Dec.17
  • 2019 December 17 10:41

    MABUX: Bunker market this morning, Dec.17

    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) showed slight upward trend on Dec.16:

    380 HSFO - USD/MT - 361.06(+1.80)

    180 HSFO - USD/MT – 402.50(+2.12)

    MGO - USD/MT – 679.27(+7.12)

    Meantime, world oil indexes rose slightly on Dec.16 on hopes energy demand will benefit from the trade deal between the United States and China announced last week.

    Brent for February settlement increased by $0.12 to $65.34 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for January rose by $0.14 to $60.21 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $5.13 to WTI. Gasoil for January delivery added $11.50.

    Today morning oil indexes do not have any firm trend so far.

    The United States and China announced on Dec.13 a “phase one” agreement that will reduce some U.S. tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of U.S. farm products and other goods. The agreement averted additional tariffs on Chinese goods totaling $160 billion that the United States was set to impose over the weekend. It is expected the deal would nearly double U.S. exports to China over the next two years and was “totally done” despite the need for translation and revisions to its text. Progress on trade could jump start oil demand and ease fears of a glut which have weighed on prices.

    Data from China on Dec.16 showing industrial output and retail sales growth accelerating more than expected in November offered some support for oil prices. But growth in China is expected to slow further next year, with the government likely to set its growth target at about 6% in 2020 compared with 6%-6.5% this year.

    The International Energy Agency (IEA) predicts deeper production cuts by the OPEC and other major producers including Russia could be not enough to prevent a global supply glut. Even if the countries adhere to the deal struck in Vienna and supply growth from other nations drops, there could still be a surplus of 700,000 barrels per day in the first quarter of next year. IEA kept its global oil demand growth forecasts unchanged for 2019 and 2020, at 1 million and 1.2 million barrels per day respectively. Meantime, US oil production has more than doubled over the past decade, driven by the boom in shale production. As per IEA, the United States was a net oil exporter for the first time in decades in September, and that could become commonplace starting late next year or in early 2021.

    China and India are still among the world’s top oil consumers, together accounting for almost a fifth of global oil consumption. Both countries have been consistently trumping the United States in importance when it comes to oil price trends in recent years as demand for oil has been growing a lot faster in both China and India. In China, oil demand has been growing at an average annual rate of 5.5 percent. In India, it has been growing by some 5.1 percent since 2008. Meanwhile, U.S. oil demand has only been climbing by 0.5 percent over the last decade. Besides, both countries are overwhelmingly reliant on imported oil. In China, the percentage of imported oil in its total consumption is almost 70 percent. In India, this percentage is even higher, at more than 80 percent.  So, if in supply, one has to watch the U.S., OPEC, and Russia, in demand, however, these are China and India. Anything that happens in those two economies immediately affects oil and fuel prices.

    The European Union agreed to cut its total emissions to net-zero by 2050 after ten hours of debates as Eastern European states demanded financial help to hit the target. One EU member state was left out of the agreement: Poland. Poland has opposed the ambitious emissions plan, saying it will cost too much to implement. As a result, the EU agreed to let it off the hook for now on the promise the country will revisit the issue next June. The union also allowed the Czech Republic to include nuclear energy in its energy mix. The agreement comes a day after the EU approved the net-zero emissions plan, which will cost it $111.7-billion (100 billion euro). Dividing these costs among the members proved to be tricky as well as navigating between the demands of individual countries.

    As 2020 rapidly approaches, very low and ultra-low sulphur HFO availability has long been a concern, but it appears that suppliers have responded to the upcoming demand and supply will not be a problem. Possibly of greater concern is how long High Sulphur HFO will remain available or if the price of it will get closer to the low sulphur fuels, greatly affecting the ROI of those owners who opt for scrubbers. Incompatibility of bunker stems may leave shipowners facing serious engine repairs, requiring vessels to be taken out of service and leading to serious loss of earnings for operators. The mixing of non-compatible fuels can lead to the formation of sediment in the tanks which can block filters and purifiers. Add to that the ever-present risk of asphaltenes and cat-fines in certain fuels then the stemming of good quality fuel and good on-board management is essential if damage to the engines and fuel systems is to be avoided.

    We expect IFO prices will stay stable today while MGO prices may add 5-8 USD.


2022 August 19

18:10 An important milestone for the Hapag-Lloyd and DAL integration
17:57 IAA PortNews’ summary of past week news
17:39 USC to introduce enhanced financial control of shipbuilding contracts
17:18 Diana Shipping announces sale and leaseback of m/v New Orleans and m/v Santa Barbara
17:02 Danube water levels drop exposed wrecks of German warships sunken in 1944 – Reuters
16:55 RUB 6 billion needed to support Far East shipyards to offset their investment in building crab catchers - Denis Manturov
16:27 APM Terminals attracts new services to support booming Latin American trade routes
16:01 SCZONE’s MDC and DP World sign a contract for a logistic zone in Sokhna
15:40 Shipbuilding facilities have to be upgraded for implementation of new projects by 2030 — Denis Manturov
15:22 ABS Rules guide new greener OSV
15:03 Capacity utilisation within Russia’s shipbuilding sector is quite high - Denis Manturov
14:39 CMA CGM Group and WHOI launch acoustic monitoring buoy off the coast of Savannah, to increase whale monitoring efforts
14:19 A.P. Moller - Maersk engages in green bio-methanol partnership with Debo
14:04 New operator of Sakhalin 2 project, Sakhalin Energy LLC, commences operation
13:52 APM Terminals wins auction for UPI-B Cais Sul bid, confirms investments in Suape
13:21 Xeneta real-time container rates update: Week 33
12:19 OOCL announces 2022 interim results
11:48 Port of Baku reports 15.7-pct increase of its cargo throughput in H1'2022
11:24 AKA and e-Link join hands to accelerate net-zero waterway transportation
11:07 Vladimir Putin emphasized the need to minimize delays in civil shipbuilding schedules
10:32 China ports Jan-Jul container volume rises 4.2%,Ningbo Containerized Freight Index drops in August
10:04 Morten Holm Christiansen becomes interim CFO at Topsoe
09:50 Global Ports’ revenue in H1’2022 rose by 18.2% YoY to $271.6 million
09:16 Crude oil futures fall on concerns over economic growth slowdown
08:56 MABUX: Global bunker prices to continue firm upward evolution on Aug 19

2022 August 18

18:41 Yilport Holding appoints co-CEO
18:01 Propulsion and hull design can significantly reduce shipping emissions and lower underwater noise - VTT
17:42 Ghana Chamber of Shipping becomes Associate ICS member
17:31 Boskalis posts H1 2022 results
17:15 Posh acquires offshore construction vessel from BOA
16:45 Port of Aberdeen and Stillstrom to collaborate on pioneering cleantech
16:42 Daugavgriva shore reinforcement continues by the order of the Freeport of Riga Authority
16:10 Anaergia’s Toender plant to supply CO2 to European Energy A/S for green E-methanol production as fuel for container ships
15:50 Norsepower signs agreement with Dalian Shipbuilding to install Rotor Sails onboard two newbuild CO2 carrier vessels
15:33 Mechel attributes decrease in coal sales in 1H'22 to limited carrying capacity of railroads leading to FE ports
15:14 Fluxys, ArcelorMittal Belgium and North Sea Port start a feasibility study for the Ghent Carbon Hub project
14:41 Europe experiences its worst drought in 500 years - Xclusiv Shipbrokers
14:21 APM Terminals adds new services to support booming Latin American trade routes
14:15 21 ships shipped 563,318 tonnes of food products from Ukrainian ports from 1 August 2022
14:01 Global Maritime Services launches Marine Advisory for the FSRU & LNG sector
13:31 China to lift fishing ban in a phased manner in August and September - Standard Club
13:10 Ardmore Shipping expands presence in Singapore to support energy transition plan
13:04 MABUX: Bunker Weekly Outlook, Week 33, 2022
12:40 The average vessel utilisation on the major head-haul trades continues to be below the threshold - Sea-Intelligence
12:37 Over 3,000 TEU transported between Russia and Europe by FESCO European Railway Network
12:20 ABS contracted to address barriers to adoption of advanced nuclear technology at sea
12:00 Maersk Tankers welcomes Korean SK Energy as a pool partner
11:40 Kalmar terminal tractors chosen by Maldives Ports
11:20 KiwiRail selects MAN's engines for new ferries
11:03 Royal IHC and Karnafuly Ship Builders sign contracts for design, engineering and equipment of four CSDs
10:36 Port of Oakland July volume drops 28 percent in July 2022
10:23 Port of Los Angeles container volume up to record 935,345 TEU in July 2022
10:14 Overhaul of Berth No. 29 drainage networks completed in Vostochny port
09:57 Port of Long Beach welcomes Pasha Hawaii LNG-powered ship
09:15 Crude oil futures are slightly up driven by a number of factors
08:46 MABUX: Global bunker indices may turn to upward changes on Aug 18

2022 August 17

18:37 NFE and Apollo funds complete $2 bln LNG maritime joint venture
18:07 Steerprop to supply a complete propulsion package for first-of-its-kind Wind Installation Vessel
17:31 Svitzer brazil strengthens fleet with two newbuilds
17:23 SFL Corporation agrees to acquire four Suezmax tankers in combination with long term charters