• 2020 March 26 10:16

    MABUX: Bunker market this morning, Mar 26

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

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs) changed insignificant and irregular on March 25:

    380 HSFO: USD/MT 258.46 (-0.49)
    VLSFO: USD/MT 330.00 (+1.00)
    MGO: USD/MT 417.93 (+1.10)


    Meantime, world oil indexes rose slightly on March 25, bolstered by progress on a massive pending U.S. economic stimulus package.

    Brent for May settlement increased by $0.24 to $27.39 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May rose by $0.48 to $24.49 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.90 to WTI. Gasoil for April delivery gained $2.75.

    Today morning global oil indexes do not have any firm trend so far.
     
    U.S. senators and Trump administration officials have reached an agreement on a $2 trillion stimulus bill helping to boost markets.

    Over the weekend, Bank of America told clients the US was heading towards a recession because of the spread of the coronavirus. In addition, oil producing countries continue to increase production at record levels amidst a price war between Russia and Saudi Arabia after OPEC+ (OPEC and Russia) failed to reach an agreement earlier this month over how much further to cut production to offset the virus outbreak-induced decline in demand. Some oil producers recently reduced selling prices by up to 20 per cent.

    Two main scenarios are under discussion at the moment: the best-case scenario includes effective control measures against the pandemic and successful stimulus packages that could halt the secondary effects on the economy while a resolution to end the oil price war is also required. This scenario does not mean oil will return to $60 plus levels, and $45 plus level looks more reasonable. The worst-case scenario assumes that the global economy will be impacted by a wave of bankruptcies.

    With the Saudis holding out and flooding the market with oil, the oil glut could reach a staggering 1 billion barrels in a matter of months and $10 oil is suddenly looking like a distinct possibility. Even though the American government plans to purchase a total of 77 million barrels of oil for its strategic reserves, this can only be done at a 2 million barrels per day clip, thus leaving a massive excess of nearly 20 million barrels per day as the coronavirus continues to crush global demand.

    Barclays slashed by $12 a barrel its estimates for average WTI Crude price this year to $28 per barrel, and cut by the same amount--$12 a barrel--its outlook for the average Brent Crude price for 2020. Barclays now sees Brent Crude averaging just $31 a barrel this year, largely in line with other major banks that have already slashed their forecasts for Brent to the low $30s. The price outlook was slashed due to the spreading of the coronavirus and estimates of massive demand destruction across the world as many countries are now under lockdown, and thousands of flights are grounded. Last week, Morgan Stanley further cut its oil price forecast, expecting Brent Crude to average $30 a barrel during the second quarter, from $35 a barrel earlier.

    The U.S. is today showing signs of increased desperation as oil prices sink to levels that may pose a threat to the energy independence of the United States by kicking U.S. shale out of the market. Several recent actions taken by the United States indicate that it may be attempting to change the current trajectory of the global oil market, including by showing interest in stepping up negotiations with Saudi Arabia. The move comes after intense pressure from U.S. lawmakers and others in the industry in recent weeks, some of whom have urged President Trump to take the extreme stance of embargoing Russian and Saudi Arabian oil. Other calls to action include the Texas Railroad Commission’s suggestion to use pro-rationing that would force Texas producers to curb production.

    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 1.6 million barrels from the previous week. At 455.4 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year. This comes after two consecutive weekly inventory builds, the first of 7.7 million barrels, for the first week of March, and another, of 2 million barrels, for the second week of the month. Distillate fuel stockpiles last week shed 700,000 million barrels after during the previous two weeks, they declined by a combined 9.3 million barrels.

    Credit risk in the bunker market is intensifying amid the coronavirus outbreak, even as dropping bunker fuel costs following the recent collapse in oil prices offer some relief to shipowners. This comes as industry estimates a negative outlook for global bunker demand this year as shipping feels the heat and countries worldwide struggle to contain the pandemic. Despite that, some shipowners are considering locking in longer term contracts, but also volumes for April, as bunker fuel prices have dropped. On the other hand, some shipowners have already started taking steps to trim their capital expenditure to cope with tough markets.

    We expect bunker prices may rise slightly today in a range of plus 1-5 USD.




2021 September 21

19:01 Grimaldi to launch the Civitavecchia-Arbatax-Cagliari service
18:05 RTCOMM and Konnect Russia agree to join hands in development of satellite communication services for sea and river ships
18:02 “K” LINE to procure 8 next-generation of environmentally friendly car carriers
18:01 Diana Shipping announces time charter contract for m/v Maera with ASL
17:54 ABS publishes guide to ammonia-fueled vessels
17:47 RTCOMM and Iridium join hands to develop mobile communication services to improve clients security in Russia’s hard-to-reach areas
17:37 AD Ports Group and the General Company for Ports of Iraq sign MoU to promote cooperation and investments
16:58 RTCOMM and KNS partner to expand ocean satellite communications services
15:36 Hydrographic survey vessel Gorizont returns from the Arctic expedition
15:11 MOL Group Adopts Car Carrier Operation Digital Transformation Promotion Project 'Mathematical Optimization': Part II
14:59 Wärtsilä signs five-year Optimised Maintenance agreement featuring latest digital innovations with STQ of Canada
14:07 New ESPO Green Guide 2021 outlines a vision for ports towards a green future
12:34 International Maritime Exhibition and Conference NEVA 2021 opens in St. Petersburg
12:12 AtoB@C Shipping orders six highly efficient 5,350 dwt hybrid vessels
11:52 Damen Shipyards Group set to develop its localization in Russia
11:31 Port Houston sets new record for containers in August 2021
11:05 ASD Tug 3010 Ice Arc4 series to be laid down for Atomflot in September 2021
10:58 Stena Line and Frederikshavn sign agreement for two fossil fuel free ferries by 2030
09:51 Average spot market price for Russian M100 product rose to RUB 25,185 pmt as of September 17
09:37 MABUX: Global bunker market turned into downward trend on Sep 21
09:33 Crude oil prices increase in expectation of Covid related restrictions to be eased
09:19 Baltic Dry Index as of September 20

2021 September 20

18:27 Strategic Marine announces new 42m Gen 4 Fast Crew Boat
18:07 FSG to build RoRo vessel with LNG propulsion for Australian company SeaRoad
17:45 Sovcomflot Board reviews Group’s results for H1 2021
17:26 Shell to build one of Europe’s biggest biofuels facilities at the Shell Energy and Chemicals Park Rotterdam
17:16 Maiden call of EMA service at Vado Ligure connecting Eastern Med with US East coast
17:00 Rosmorrechflot estimates Russia’s demand for technical ships in 2025-2030 at over 800 units
16:39 New DNV Naval Technical Assurance concept offers tailored solutions for naval verification
16:11 Vyborg Shipyard delivers second trawler of KMT01 design
15:25 IAPH launches Cybersecurity Guidelines for Ports and Port Facilities
14:39 FESCO acquires 300 new refrigerated containers of increased capacity
14:02 Boluda Towage celebrates naming ceremony for tug quartet
13:22 ABS study suggests dual-fuel newbuilds have the decarbonization advantage over conversion
12:53 International conference “Inland waterways: strategic potential for growth” kicked off in Saint-Petersburg
12:05 NAVTOR boosts development muscle with new base in Poland
11:58 Port of Oakland import volume edged up in August 2021
10:51 New study reveals vessels using Jotun HPS reported 20% lower carbon intensity in operations
10:12 4th International Conference “Development of Icebreaking and Support Fleet“ kicked off in Saint-Petersburg
09:41 Crude oil prices decrease as oil production resumes in the Gulf of Mexico
09:35 San Pedro Bay Ports announce new measures to speed cargo throughput
09:27 MABUX: Global bunker market is in a stable state on Sep 20
09:13 Baltic Dry Index as of September 17

2021 September 19

15:23 Austal names Rusty Murdaugh as Austal USA President
14:17 Parkwind selects Port of Mukran to become the O&M base for Arcadis Ost 1 wind farm
13:04 Babcock sells first new frigate design licence to Indonesia
11:37 USC repatriates 22 migrants to Cuba
10:56 South Louisiana ports advocate for federal aid post Hurricane Ida

2021 September 18

15:07 Energy-saving investments clear the way for shore-based power
13:49 GROUPE IDEC is developing the first XXL energy - positive activity park in Europe
12:41 IMOCA extends relationship naming Iridium and Thales as official communications partners
11:37 Tanguy de Lamotte will spearhead electric boat revolution in the US
10:49 Industry alarmed as spat between governments threatens investment in Scottish ports – BPA

2021 September 17

17:49 New radar post to increase navigation safety in the seaport of Kaliningrad
17:26 Svanehøj acquires Wärtsilä Tank Control Systems
17:06 Navigator Gas awarded DNV AiP for new ammonia fuelled gas carrier design
16:47 Zelenodolsk Plant named after M. Gorky launches small-size missile ship Grad
16:31 PIL launches new South China to India West Coast Service - South China India Express
16:05 De Beers’ latest diamond recovery vessel departs Damen Shipyards Mangalia for Southern Africa
15:46 Port of Melbourne CEO announces retirement