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  • MABUX: Bunker market this morning, Jan 16
  • 2020 January 16 10:18

    MABUX: Bunker market this morning, Jan 16

    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 firm downward trend on Jan.15:

    380 HSFO: USD/MT 382.51 (-2.17)
    VLSFO: USD/MT 639.00 (-15.00)
    MGO: USD/MT 680.95 (-9.50)


    Meantime, world oil indexes fell on Jan.15 on concerns that the Phase 1 trade deal between the United States and China, the world's biggest oil users, may not boost demand as the U.S. intends to keep tariffs on Chinese goods until a second phase.

    Brent for March settlement declined by $0.49 to $64.00 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for February fell by $0.42 to $57.81 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $6.19 to WTI. Gasoil for February delivery lost $3.75.

    Today morning global oil indexes turned into slight upward correction.
     
    Under the Phase 1 trade agreement, China will buy $18.5 billion more in U.S. energy products in the first year and $33.9 billion in the second. However, market remained cautious. Trump said he would remove all U.S. tariffs on Chinese imports as soon as the two countries completed Phase 2 of their trade agreement, adding he does not expect there to be a Phase 3 pact.

    OPEC Secretary General Mohammed Barkindo said, OPEC+ members will remain united in their stewardship of the oil market, whether or not their current production cuts are extended beyond their currently scheduled March expiry. OPEC, Russia and nine other countries are entering their fourth year of production cuts aimed at supporting oil prices, with the current deal that went into force January 1 calling on the coalition to slash 1.7 million b/d of output through March. Saudi Arabia has also pledged to cut a further 400,000 bpd if all other members respect their production quotas. Earlier this year Russia has suggested that it may seek to exit the production cuts. The alliance will meet again March 5-6 in Vienna to decide on the future of the deal.

    Russia’s government, including Energy Minister Alexander Novak, resigned on Wednesday in an unexpected move after President Vladimir Putin said that he would be looking to make amendments to the Russian constitution. Putin’s proposals for constitutional amendments include giving more powers to the Parliament. Whoever takes over Russia’s energy ministry, they will have to hold a communication channel open to OPEC and its leader Saudi Arabia, because Russia has been instrumental in the ongoing OPEC+ oil production cuts. Still, Russia’s energy policy in the global oil and gas markets will continue to be dictated by Putin.

    European nations insist they still want to save the Iran nuclear deal, but to do that they now need to turn up the pressure on Tehran. Germany, France and the U.K. triggered a dramatic escalation in the standoff with Iran on Jan.14, starting formal action against the Islamic Republic for breaching restrictions on uranium enrichment set out in the 2015 accord. Violating the terms of the deal marks a dangerous new course that could see Iran coming closer to developing a nuclear weapon and leaves the so-called EU-3 with little choice but to start the agreement’s dispute resolution mechanism. The EU will first try to resolve Iran’s nuclear violations within an initial 15-day period set out in the accord. If that fails, the foreign ministers of signatory nations, including China and Russia, would gather to debate the matter and would have the option of sending Iran back to the UN Security Council to face even stiffer international sanctions.

    The U.S. government is threatening Baghdad not to kick out American troops from the country. The State Department threatened to shut down Iraq’s access to its own bank account held at the Federal Reserve Bank of New York, a move that could cripple Iraq’s financial system. Besides, a U.S. troop withdrawal could easily relaunch a sectarian civil war in Iraq, and Kirkuk region would be the first to fall. The only reason ISIS has been kept from taking over this region entirely is the effort of a U.S.-led international anti-ISIS coalition, in which Kurdish Peshmerga forces played an integral role since 2014. A withdrawal of U.S. troops at this point will ensure a return of ISIS, and a sectarian conflict is exactly what the Islamic State is hoping for. The situation in Iraq has become potential upward driver for fuel prices recently.

    Russia said U.S. sanctions could delay the Nord Stream 2 gas pipeline until next year. Just 160 km of the total length of the 2,460 km two-string line is left to lay after contractor Allseas halted pipe-laying work due to US sanctions signed into law in mid-December threatening measures against companies helping to build the project. Russia is expected to fit out an existing vessel of its own -- the Akademik Cherskiy -- to lay the final kilometers of the Nord Stream 2 pipeline. Nord Stream 2 - which has been criticized by the European Commission, the US and countries in eastern Europe for focusing too much European gas import capacity on one route and one source - will double the Russia-Germany subsea gas export corridor to 110 Bcm/year.

    China’s oil demand may only grow by 2.4 percent this year, down from 5.2 percent in 2019. The slowdown coincides with economic deceleration. At the same time, China has amassed an enormous strategic oil reserve in the last few years, growing from 191 million barrels in 2015 to as much as 800 million barrels last year. China’s import demand was bolstered by this stockpiling; should it slow down or cease altogether it would amount to another knock on demand.

    Global availability of VLSFO – compliant fuel – is still an issue on global bunker market. Despite the reports of the Maritime and Port Authority of Singapore (MPA) that 29 of Singapore’s 45 licensed bunker suppliers have 0.50% sulphur fuel oil ‘available now’ and all but two have IMO 2020-compliant marine gasoil (MGO), there are still reports of delays in barge deliveries and of a lack of compliant product. In India, a lack of IMO 2020-compliant fuel threatens to bring coastal shipping operations on the East Coast to halt. In Egypt, meanwhile, there is said to be very limited availability of compliant fuel as well.  As a result, the Suez Canal Authority (SCA) has issued a circular saying it puts ‘no restrictions on fuel oil’ for ships using the canal ‘until ratification of MARPOL Annex VI’ by Egypt.

    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 2.5 million barrels from the previous week. At 428.5 million barrels, U.S. crude oil inventories are at the five year average for this time of year. Analysts had expected the authority to report an inventory decline of 750,000 barrels for the period. A week earlier, the EIA estimated inventories had added 1.2 million barrels, after for the last week of 2019 it reported an inventory decline of 11.5 million barrels. Crude production for the week ended Jan. 10 rose to 13 million barrels per day (bpd).

    We expect bunker prices may go down today in a range of minus 2-4 USD for IFO and minus 2-9 USD for MGO.




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
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
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