• 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.




2020 September 23

18:15 HMM opens Fleet Control Centre
17:35 Stena develops a solution to use recycled batteries in charging stations at port
17:05 Philippine Ports Authority COVID-19 Molecular Testing Center for seafarers now operational
16:42 British Ports responds to reasonable worst-case scenario Brexit assumptions
16:17 Vestdavit wins contract to supply six Australian Navy patrol boats
16:03 ABB powers P&O super-ferries towards new sustainable transport era
15:43 Royal Niestern Sander orders SCHOTTEL thrusters for world’s first shallow-draught ice-breaking walk-to-work vessel
15:25 FESCO’s Board of Directors elected new Management Board
15:03 Kalmar’s fuel-efficient terminal tractor solutions selected by Yilport for fleet expansion at Puerto Bolívar and Gävle container terminals
14:47 RF Government to revise comprehensive plan for upgrading and expanding core infrastructure
14:30 U.S. Coast Guard awards four more fast response cutters to Bollinger Shipyards
14:01 ESPO expresses commitment of European ports to play their part in helping shipping sector decarbonise
13:28 Travelling by ferry between Finland and Sweden is now permitted without restrictions
13:19 Damen delivers ASD Tug 2810 to Thomas Service Maritimes
13:02 Van Oord’s Deep Dig-It trencher buries cables to 5,5 metres depth for offshore grid connection
12:44 Nakhodka Shipyard launched two self-propelled freight/passenger barges ordered by Kamchatka Transport Ministry
12:15 Construction of LNG transshipment facility in Kamchatka put under special control of RF Government
12:01 CMA CGM announces FAK rates from Asia to North Africa and to the Mediterranean
11:53 Maersk partners with IB Cargo to offer tailored logistics solutions for IKEA Supply AG in Romania
11:09 Konecranes wins Automation Service Contract in Indonesia
10:51 Bunker prices increase in the Port of Saint-Petersburg, Russia (graph)
10:32 IAA PortNews offers photos from farewell ceremony for Project 22220 icebreaker Arktika leaving for Murmansk
10:13 BlueWater Reporting: Asia-South America trades sees high demand, equipment shortages
10:00 RF Government approves new NSR navigation rules
09:41 Oil prices decrease amid information about growing US reserves
09:29 Maritime Safety Committee adopts resolution on Recommended action to facilitate ship crew change
09:26 Baltic Dry Index as of September 22
09:12 MABUX: Bunker market this morning, Sept 23
08:48 MPA and SMI launched a joint call for proposals on the electrification of harbourcraft in the port of Singapore

2020 September 22

18:24 FESCO launches new maritime service from ports of China and USA to Chukotka
18:06 Aker Solutions wins electrification work for Lundin Energy Norway
17:49 Onezhsky Shipyard launches yet another self-propelled hopper barge of Project NV-600
17:36 DNV GL – Maritime releases the fourth edition of its Maritime Forecast to 2050
17:15 KNUD E. HANSEN introduces new design of icebreaking expedition cruise vessel
16:56 Vyborg Shipyard lays down processing trawler of KMT02.03 design
16:35 "NextGEN" shipping decarbonization concept mooted for green and efficient navigation
16:19 USC and KOMEA create Russia-Korea shipbuilding and ship equipment cluster
16:05 Hopper Dredger First to Sail 2,000 Hours on 100% Sustainable Marine Biofuel
15:34 Boudewijn Siemons appointed as new Port Authority COO
15:10 The largest LNG-powered container ship joins CMA CGM Group's fleet
14:58 Lead nuclear-powered icebreaker of Project 22220, the Arktika, heads out for Murmansk
14:23 Release of containers at Port of Antwerp will be digitalized
14:17 Gazprombank to loan EUR 522 for construction of floating LNG storage units
13:22 Konecranes to start cooperation negotiations in Germany and Finland in its Industrial Equipment business area
13:00 Ships of RF Navy’s Black Sea Fleet participated in Kavkaz-2020
12:38 Bunker market sees mixed price movements in the Far East ports of Russia (graph)
12:15 Dogger Bank wind farm places record-breaking turbine order boosting local jobs
11:49 BIMCO adopts the industry’s first ship sale and leaseback standard
11:46 Operation of Novosibirsk gateway completed in navigation season of 2020
11:20 Rosmorport prepares tender documentation to continue construction of international marine terminal in Pionersky
10:33 IAA PortNews’ webinar “All Ferries. Caspian Basin” scheduled for 30 September 2020
10:09 Port Houston container volumes down 4% to 248,630 TEUs in August 2020
09:55 New gas tanker form paves the way for revision of ASBATANKVOY
09:31 Oil prices are recovering
09:22 Keppel O&M secures two contracts worth approximately $200 million
09:14 Baltic Dry Index as of September 21
08:38 MABUX: Bunker market this morning, Sept 22

2020 September 21

18:27 CMA CGM announces new PSS, FAK and GRR from Asia to North Europe
18:07 IUMI reports that marine cargo insurance market is “improving amid significant change”
17:43 BIMCO adopts the industry’s first ship sale and leaseback standard