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  • MABUX: Bunker market this morning, Jan 13
  • 2020 January 13 09:36

    MABUX: Bunker market this morning, Jan 13

    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) demonstrated irregular changes on January 10:

    380 HSFO: USD/MT – 388.10 (+0.31)
    VLSFO: USD/MT – 661.00 (-7.00)
    MGO: USD/MT – 701.31 (-9.29)

    Meantime, world oil indexes also demonstrated slight irregular changes on Jan.10 as the market focused on rising U.S. inventories and other signs of ample supply. However, markets were still eyeing the longer-term risks of conflict, and prices were briefly supported on Friday by new U.S. sanctions on Iran in retaliation for its missile attack on U.S. forces in Iraq this week.

    Brent for March settlement decreased by $0.39 to $64.98 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for February declined by $0.52 to $59.04 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $5.94 to WTI. Gasoil for January delivery increased by $0.50.

    Today morning oil indexes slight amid easing U.S.-Iran tensions.

    Last week, the U.S. House of Representatives voted to curb U.S. President Donald Trump’s power to strike Iran. Meanwhile, Vice President Mike Pence said the Islamic Republic has asked militias in the Middle East not to carry out attacks against U.S. interests.

    Oil prices have been under pressure since Jan.8 after President Donald Trump refrained from responding to Tehran’s rocket attacks on U.S.-Iraqi airbases after the U.S. killing of Iranian General Qassem Soleimani. Even media reports out of Beijing on Jan.9 confirming that China will sign the phase one trade deal with the United States Jan.15 couldn’t get oil higher.

    The United States rolled out harsher sanctions on Iran on Jan.10, targeting the Islamic Republic’s multi-billion-dollar metals Industry, as part of the White House’s “maximum pain” campaign aimed at crippling Tehran’s possible nuclear bomb ambitions. Iran’s Revolutionary Guards commander has also vowed he would take "harsher revenge" on the United States after the raid on the airbases, which did not kill any U.S. servicemen.

    Both Iran and Iraq are members of OPEC, which together with Saudi Arabia, account for about 40% of the world’s oil production. On Jan.08, crude tankers deliberately avoided the Strait of Hormuz around Iran to be on the safe side. Still, there has been no disruption to Middle East oil production as a result of the flare-up in tensions.

    Also, a Russian navy ship “aggressively approached” a U.S. Navy destroyer in the North Arabian Sea on Jan.9, the U.S. This puts some fear back into the market place

    OPEC output declined in December ahead of the new pact. Still, production remains higher than the forecast demand for early 2020. Global oil markets will remain well supplied this year, with a possible overhang of some 1 million bpd, according to the International Energy Agency. Non-OPEC production remain strong. It is still expected production coming from Norway, Canada, Guyana, among other countries. Norway is about to experience a sharp jump in oil production in the next four years. After a steady decline over several years, production is set for a 43-percent increase between 2019 and 2024, reaching 2.02 million bpd in 2024. This will be thanks to the start of production at the Johan Sverdrup offshore field along with several smaller fields.

    The start of 2020 has seen the spread between the main compliant bunker fuels, 0.5% sulfur fuel oil and marine gasoil, shrink, amid high demand for very low sulfur fuel oil and slack market conditions for middle distillates. European 0.1% sulfur marine gasoil remains priced at a premium to 0.5% VLSFO, which is to be expected due to higher refinery and manufacturing costs. However, the differential between VLSFO and 0.1%S marine gasoil in both the barge and the downstream bunkers market has narrowed notably over the first days of 2020. Some suggested MGO would fill potential local demand shorts for 0.5% sulfur bunker fuel if availability becomes limited. However, practical and operational limitations have tested this outlook, with some sources saying the less viscous 0.1% marine gasoil is less suitable for long voyages and more liable to cause difficulties in ships’ engines.

    The Mediterranean has seen the most pronounced tightness for 0.5%, with spreads of around $10 between VLSFO and MGO at some ports in 2020.All this has been reflected in the upstream refinery feedstocks market. Low sulfur straight run has seen rocketing values as the product enters directly 0.5% marine fuel blendstock. Similarly, increasing demand for low sulfur vacuum gas oil, for use as a blendstock, has returned strength to a product that had remained relatively flat for 2019.

    We expect bunker prices to demonstrate slight irregular changes: 1-3 USD down for IFO, 1-3 USD up for MGO.

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
14:51 Sembcorp Marine's LMG Marin to design world’s first zero-emission fuel tanker
13:09 USCG, royal Turks and Caicos Islands Police Force sign MOU
12:34 The Hurtigruten terminal has been renamed Jektevik terminal
11:02 Port of Rotterdam Authority embarks on partnerships with three promising maritime companies

2021 December 3

18:26 Hydrographic Company set to establish Center of Engineering and Technical Expertise
18:07 ABP Humber complete oil spill incident management exercise
17:52 Wärtsilä OPTI-DP Engagement Tool supporting the marine industry to configure optimised propulsion arrangements for DP vessels
17:45 Ocean Network Express conducts a joint crisis management drill with Seaspan Corporation
17:40 Transport Strategy of Russia until 2030 with forecast until 2035 published on official portal
17:22 MSC adds Hamburg to its feeder service „Baltic Loop 3“
17:02 Vyborg Shipyard launches KMT01 trawler named Kara Sea
16:32 South African minister visits Port of Rotterdam to discuss hydrogen exports
16:05 PD Ports contracts Konecranes to convert four RTGs to electric
15:31 Four Jones Act CTVs built to ABS Class to support U.S. offshore wind development
15:17 ABS, NYK, MTI and WinGD team-up to verify design with modeling and simulation
14:03 Jurong Port joins the Castor Initiative
13:30 ABS awards sustainability notations to two Harvey Gulf vessels
13:04 Kapitan Dranitsyn and Admiral Makarov icebreakers reinforced icebreaker group on NSR
12:57 Royal IHC delivers key components for “R.B. Weeks” to Weeks Marine
12:42 Icebreaker assistance season begins in White Sea waters
12:17 Sailing practice of 2021 on Mir sailing ship successfully completed
11:21 NCSP Group's consolidated revenue for 9M’2021 rose by 9.3%
10:53 Foreign contractors can be involved to build LNG-powered icebreakers for Arctic
10:38 MABUX: Bunker prices may demonstrate multidirectional changes with tendency to grow on Dec 3
10:29 The Korean Register publishes guidance for containers loading on bulk carriers
10:20 MSU-1 to perform reconstruction of Gorodetsky hydrosystem locks
09:57 Annual repair dredging in Gulf of Ob from 2023 estimated at 5 million cbm
09:35 Crude oil prices rise on OPEC+ decision to keep oil output increase in January
09:18 Baltic Dry Index as of December 2

2021 December 2

18:36 NRP buys handysize drybulk carrier
18:06 2M Alliance’s Far East liner service „AE 7/Condor“ calls at Hamburg again
17:54 Icebreaker assistance season starts in Big Port St. Petersburg on December 7
17:36 Vitol is first customer to approve completely digital inspection of cargo tanks
17:15 BIMCO launches new contract for employment of security escort vessels
16:45 GTT will design the tanks of four new LNG carriers ordered by Daewoo Shipbuilding & Marine Engineering to operate in Arctic waters
16:25 MOL announces delivery of next-generation coal carrier 'EeneX' series
16:05 PSA & ONE launch environmentally friendly barge service at Jurong Island Terminal
15:42 “K” Line conducts trial use of marine biofuel for decarbonization on car carrier
15:38 Wärtsilä wins order to supply cargo handling system for second LNG bunker vessel being built by Fincantieri Bay Shipbuilding
15:23 Verifavia launches industry’s first real-time carbon intensity indicator dashboard
14:55 Two more LK-60 icebreakers needed for regular year-round navigation on Northern Sea Route
14:28 Equinor and SSE reach financial close on the third phase of the world's biggest offshore wind farm
14:04 Nuclear-powered icebreaker Sibir to commence operation in Kara Sea in early January 2022 – Vyacheslav Ruksha
13:42 MABUX: Bunker Weekly Outlook, Week 48, 2021
13:02 European shipowners call for further action in the Gulf of Guinea
12:40 Rolls-Royce to supply eight mtu engines for new Svitzer tugs in Brazil
12:01 Throughput of Azov port in 11M’2021 climbed by 1% YoY
12:00 NORDEN simplifies business unit structure
11:36 Norway’s Eksfin tops NOK 10bn in offshore wind financing as Dogger Bank C reaches financial close
11:34 Annual throughput of Severnaya Zvezda project on Taimyr peninsula to exceed 7 million tonnes from 2026
11:10 MABUX: Uncertainty on Global bunker market to continue on Dec 02
10:00 Digital Twin Conference 2022 to be held virtually on 11-12 May 2022
09:33 Crude oil prices are rising in expectation of OPEC+ meeting
09:19 Baltic Dry Index as of December 1