• Home
  • News
  • MABUX: Bunker market this morning, Jan 27
  • 2020 January 27 09:37

    MABUX: Bunker market this morning, Jan 27

    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 24:

    380 HSFO: USD/MT – 380.26 (+0.08)
    VLSFO: USD/MT – 609.00 (-6.00)
    MGO: USD/MT – 656.06 (-3.55)


    Meantime, world oil indexes fell on Jan.24 as concerns that a coronavirus will spread farther in China, the world’s second-largest oil consumer, curbing travel and oil demand.

    Brent for March settlement decreased by $1.35 to $60.69 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March fell by $1.40 to $54.19 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $6.50 to WTI. Gasoil for February delivery declined by $9.50.

    Today morning oil indexes continue to decline as the rising number of cases of the new coronavirus in China and city lockdowns there deepened concerns over oil demand.

    The virus that has killed 80 people and infected more than 2,7 has prompted the suspension of public transport in 10 Chinese cities, while cases of infection have been found in several other Asian countries, France and the United States. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday, when millions of Chinese travel. Experience with previous outbreaks such as SARS in 2003 and MERS from 2012 suggests the economic impact of an epidemic is relatively small. However, the market remains vulnerable to any disappointing news about consumption.

    The Economist Intelligence Unit said in a report Jan.23 that the virus could shave between 0.5 to 1 percentage point off China’s gross domestic product growth this year against a baseline forecast of 5.9 per cent. On the energy front, the outbreak has already downed demand for 200,000 barrels of refined oil products. In China’s Hubei province, where the disease was first noted, the shutdown of transportation has probably eliminated about 50,000 to 70,000 barrels a day of demand. Separately, Goldman Sachs said that it anticipated a 260,000-barrels-per-day negative shock to global oil demand on average, including a 170,000-bpd loss of jet fuel demand, from the 2019-nCoV. Its analysis was based on comparison with the 2003 SARS health epidemic, which shook global markets, including oil.

    The latest U.S. rig count data, an indication of future supply from the world’s largest crude producer, did little to support oil prices as energy firms added oil rigs for a second consecutive week. Companies added three oil rigs in the week to Jan. 24, bringing the total count to 676. In the same week a year ago, there were 862 active rigs.

    Also the U.S. government’s latest supply report on Jan.23 showed gasoline stockpiles grew for an 11th consecutive week to a record high. At the same time, U.S. oil production from tight formations increased in 2019, accounting for 64% of total U.S. crude oil production. This share grew because of the increasing productivity of new wells that were brought online during 2019. The growing initial production rates have helped oil production from tight formations to increase despite the slowdowns in drilling activity when oil prices fell between 2015 and 2016. Since 2017, recovering oil prices and more efficient production from new wells have helped producers cover costs of drilling, production, and the development of new technologies.

    According to OPEC figures, oil inventories in the wider industrialized world are above the five-year average, which analysts say is limiting the impact of supply losses. The prospect of further steps by OPEC+, could offer support going forward. OPEC+ has been mostly limiting supply since 2017 and on Jan. 1 deepened a cut in output. Moreover, OPEC members are discussing a potential extension of the oil production cuts through the end of 2020. Talks are at early stages, but there is an understanding that after March, the cuts should be extended until the end of the year.

    A blockade of major Libyan oil ports is damaging the economy and must be quickly resolved, the Tripoli-based central bank governor told on Jan.24, adding that Libya could run a budget deficit in 2020 as a result. Libya's internationally recognized prime minister Fayez al-Serraj has warned of catastrophe if the week-long blockade by eastern-based commander Khalifa Haftar's forces, which has cut oil output to almost zero, is not lifted. Previously, oil production was 1.2 million barrels a day.

    U.S. President Donald Trump on Friday signed a proclamation increasing tariffs on derivative steel products by an additional 25 percent and boosting duties on derivative aluminum products by an additional 10 percent. He said Argentina, Australia, Brazil, Canada, Mexico and South Korea are exempt from the additional tariffs on derivative steel products, and Argentina, Australia, Canada and Mexico are exempt from the added duties on derivative aluminum articles.

    Trump has imposed tariffs on imported steel and aluminum to help boost U.S. production, which he says is a national security issue.

    We expect bunker prices will continue to fall: 5-7 USD down for IFO, 7-9 USD down 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
09:35 Crude oil prices rise on OPEC+ decision to keep oil output increase in January