• 2020 March 30 09:41

    MABUX: Bunker market this morning, Mar 30

    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) declined on Mar.27:

    380 HSFO: USD/MT 253.35 (-3.88)
    VLSFO: USD/MT 316.00 (-10.00)
    MGO: USD/MT 406.96 (-12.94)


    Meantime, world oil indexes also fell on Mar.27 as demand destruction caused by the coronavirus outweighed stimulus efforts by policymakers around the world.

    Brent for May settlement decreased by $1.41 to $24.93 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May fell by $1.09 to $21.51 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.42 to WTI. Gasoil for April delivery lost $3.50.

    Today morning global oil indexes do not have any firm trend so far.
     
    Brent oil futures may be trading at $27 per barrel but oil producers are selling their crude in the physical market at lower prices not seen since the aftermath of the Asian financial crisis of the late 1990s. Most are offloading their oil for below $20 a barrel as the coronavirus pandemic savages demand and global supply rises amid a battle between Saudi Arabia and Russia for market share. While some crude grades typically sell at a discount to Brent, the market environment is making that gap even wider and other grades that usually cost more than the European benchmark are now cheaper for the most time ever.

    A fast-rising tide of crude oil is filling up storage tanks around the world and putting a strain on the global refining system. IHS Markit estimated that the global oil market is headed for a first-half 2020 surplus of 1.8 billion barrels, exceeding the top end of the advisory firm’s estimate of available crude-oil storage capacity of 1.6 billion barrels. The main driver for the surplus comes from the unprecedented collapse in global demand as major economies curtail activity on a massive scale in an effort to slow the spread of COVID-19. Meanwhile, a price war between Saudi Arabia and Russia after Moscow rejected a Saudi-led effort to increase existing production curbs in response to the pandemic has contributed to the plunge. The existing production limits expire at the end of the month.

    The Group of 20 major economies last week pledged to inject more than $5 trillion into the global economy to limit job and income losses from the coronavirus.

    Saudi Arabia has promised a flood of cheap oil to Europe, but it looks like demand for the ultra-cheap Saudi crude doesn’t exist after all. Regardless of the cheap extra Saudi crude oil, refiners in Europe plan to cut allocations for Saudi oil by as much as 25 percent for April, as many major economies – including Germany, France, Spain, Italy, and the UK – are in lockdown mode to try to slow the spread of the coronavirus. The widespread lockdowns are leading to a massive slump in oil demand in Europe’s biggest economies. Refining operations in Europe and elsewhere are scaling back as gasoline and jet fuel demand falls off a cliff due to the pandemic.

    Russia said, a new OPEC+ deal to balance oil markets might be possible if other countries join in. It was not specified, who the new deal's members should or could be. U.S. President Donald Trump said last week he would get involved in the oil price war between Saudi Arabia and Russia at the appropriate time. As per Russia, a global economic crisis was inevitable as global debt to the world's gross domestic product had risen to 323% as of now from 230% at a time of the previous economic crisis of 2008.

    Goldman Sachs expects oil demand to fall by 10.5 million barrels per day (bpd) in March and possibly by as much as 18.7 million bpd in April. Investment bank said, a demand shock of this magnitude will overwhelm any supply response including any potential core-Organization of the Petroleum Exporting Countries output freeze or cut, adding that the scale of the demand collapse will require a large amount of production to be shut-in, of potential several million barrels per day. Such a hit on production would not likely be reversed quickly.

    The US oil and natural gas rig count dropped by 47 to 766 on the week. The drop was the largest single-week hit since the final week of December 2015, when the rig count fell 77 to 691 while oil prices were in the mid-$30s/b and falling. This past week, 40 of the 47 rigs shed were oil-directed, to drop the total to 627, while rigs chasing gas dropped by seven to 139.

    Nearly half of the rigs dropped (20) came from the Permian Basin of West Texas/New Mexico, leaving a total of 396. Operators’ breakeven prices for drilling projects are higher than oil prices are today. At $35/b WTI, more than $10/b above where prices are today, less than 10% of US onshore resources will deliver a return.

    We expect bunker prices may change irregular today in a range of plus-minus 3-6 USD.




2020 June 6

15:31 USCG, President Eisenhower rescue mariner 500 miles offshore
14:08 First contract for subsea innovation from Kongsberg
12:37 Eidesvik secures extention of time charter for PSV Viking Lady
11:47 Wärtsilä’s Data-Driven Dynamic Maintenance Planning solution optimises engine maintenance
10:52 CMA CGM announces first quarter 2020 results

2020 June 5

18:21 Mezhregiontruboprovodstroy appointed as sole contractor for construction of Utrenny terminal
18:05 CMA CGM announces FAK rates from Europe to Indian Ocean Islands
17:35 Teesport welcomes largest containership
17:05 EUROGATE Intermodal appoints Christopher Beplat as a new managing director
16:50 Russian Railways: Loading of export cargo bound for domestic ports up 6.4% in May 2020
16:35 DNV GL performs over twenty remote wind turbine inspections globally in times of COVID-19 related-travel restrictions
16:05 Gasum performs first LNG bunkering to Heerema’s Sleipnir
15:28 Acquisition and recapitalisation of Royal IHC finalised
14:18 First of two Austal's 118 metre trimarans for Fred. Olsen completes sea trials in Australia
13:56 Rosmorrechflot announces new competition for construction of Bagayevsky hydrosystem
13:29 Zvezda Shipyard stars cutting steel for yet another Aframax tanker
13:01 Keppel enters into framework deed with Borr Drilling to defer scheduled delivery of rigs
12:01 Port of Rotterdam Authority decides to hold RFT for transport service along Container Exchange Route
11:47 Yevgeny Ditrikh takes helm of STLC Board of Directors
11:04 The second largest container vessels in the world, now has its “Socarrat”
10:41 Oil prices rise within $1
10:28 Marseille Maersk sets up new record for the port of Rotterdam
10:23 Training exercise held with rescuers of RF Navy’s Northern fleet to assist emergency ship in the Arctic
10:00 RF Navy's oceanographic research vessel Admiral Vladimirsky entered the North Sea
09:39 Bunker prices rise at the port of Saint-Petersburg, Russia
09:18 Baltic Dry Index on June 4
08:46 MABUX: Bunker market this morning, June 05

2020 June 4

18:20 Wärtsilä to supply Europe's most modern simulator for inland shipping training
18:02 Dutch innovative app trains 10,000 process industry workers in Singapore during Covid-19 lockdown
17:47 Singapore Maritime and Ports Authority issues guidelines for crew change
17:25 Gasum performs first LNG bunkering to Heerema’s Sleipnir
17:02 China Merchants Group's emergency working group of the prevention and control of COVID-19 holds 20th meeting
16:34 Throughput of port Vysotsk in 5M’2020 fell by 24.2% Y-o-Y
16:02 Diana Shipping announces time charter contract for m/v G. P. Zafirakis with Koch
15:41 NS Power's crew rescues two people in the Andaman Sea
15:23 RS Rules update: hybrid propulsion
15:02 Grimaldi boosts its Italy-Greece connections
14:32 DNV GL and ABB launch new MOU to advance marine digitalization with a remote signing ceremony
14:02 150 trapped eels rescued at the Port of Gothenburg
13:48 Bunker price are stable at the Far East ports of Russia (graph)
13:31 MSC Mediterranean Shipping Company extends the seasonal blanking programme on its Asia–Europe network
13:01 Wärtsilä offers new remote service to overcome Covid-19 travel restrictions
12:31 DEME to build the Scheldt tunnel
12:03 Havyard presents new design concept for zero-emission sightseeing vessels
11:45 Annual throughput of Murmansk Transport Hub to be raised to 100 million tonnes
11:23 Construction of automated gate complex commences at APM Terminals Aarhus
11:10 Port of Zeebrugge joins the International Port Community Systems Association
10:58 Jiangnan Shipyard and Gabadi teams complete construction of the first LNG tank as part of an LNG-fuelled container ship project
10:57 AS Tallink Grupp Statistics for May 2020
10:33 More departures added for Helsinki-Tallinn route vessel Star from 4 June 2020
10:11 Oil prices go down by 1.48%-2.06%
10:00 CMA CGM cancels Low Sulphur Surcharge from July 1st, 2020
09:52 Russia’s leading shipping companies suggest development of ATB services by the USA example
09:40 PIER71 launches Smart Port Challenge 2020 with New Venture Capital Partners for maritime tech start-ups investments
09:36 MABUX: Bunker market this morning, June 04
09:14 Baltic Dry Index on June 3

2020 June 3

18:25 Russia's Main Department of State Expertise approves construction of operational water area under Obskiy LNG project
18:03 Cargotec’s Kalmar and MacGregor to help drive development of connected automated waterborne transport through participation in AEGIS project
17:46 Rosmorport announced tender to reconstruct coastal facilities of Vanino-Kholmsk ferry service
17:24 RF Government approved allocation of RUB 60.5 billion for Russian Railways’ BAM and Transsib projects in 2020