• 2020 April 1 09:16

    MABUX: Bunker market this morning, Apr 01

    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) continued slight downward movement on March 31:

    380 HSFO: USD/MT 243.67 (-5.29)
    VLSFO: USD/MT 308.00 (-6.00)
    MGO: USD/MT 398.02 (-6.55)


    Meantime, world oil indexes firmed on Mar. 31 after U.S. President Donald Trump and Russian counterpart Vladimir Putin agreed to talks aimed at stabilising energy markets.

    Brent for May settlement decreased by $0.02 to $22.74 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May rose by $0.39 to $20.48 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.26 to WTI. Gasoil for April delivery gained $7.50.

    Today morning global oil indexes do not have any firm trend so far.
     
    US President Donald Trump and Russian President Vladimir Putin agreed on Mar.30 to have energy officials from both countries discuss the dire state of the global oil market. Neither President detailed what specific issues or possibilities they would discuss. Meantime, The U.S. is also applying pressure to Saudi Arabia. It would take—at a minimum—both Saudi Arabia and Russia to effect any real change. Even if all of OPEC will continue with further production cuts, it is doubtful at this point that even aggressive action will have enough potential to trim the oil glut and boost prices at a time when the coronavirus continues to shrink demand. Although the futures market is seeing a recovery at the moment, physical cargoes are selling in some regions at single digits, with sellers offering hefty discounts

    Under Rystad Energy’s updated base case scenario of $34 per barrel in 2020 and $44 per barrel in 2021, global capital expenditure (capex) for exploration and production firms (E&Ps) is expected to drop by up to $100 billion this year, about 17% versus 2019 levels. Expected decline this year will make 2020’s capex volumes, estimated at about $450 billion, the lowest in 13 years. As the most flexible of the supply segments in terms of cost reduction, US shale players are expected to reduce their investments by about 30% year-on-year. These measures will be quickly reflected in the oil market supply, with shale oil supply growth set to slow down in 2020.

    IHS Markit estimates, globally, the countries/regions with the lowest oil capacity (estimated in how many days of crude oil production could be placed in available storage) are Nigeria, Brazil, Ecuador, and Alberta in Canada. The U.S. PADD 4 Rocky Mountain district, which includes Wyoming and Colorado, has 12.8 days of storage capacity, while all U.S. districts combined have 30.2 days of storage. Russia’s days of storage are 8.0, while Saudi Arabia’s are estimated at 18.0.

    Russia’s largest oil producer, Rosneft, has announced that it is halting operations in Venezuela and selling its assets there (including multiple joint ventures, oil-field services companies, and other activities) to a company fully owned by the Russian government. The move appeared to be aimed at protecting Rosneft from U.S. sanctions while Russia continues supporting Venezuelan President Nicolas Maduro. The United States has imposed sanctions on two Rosneft subsidiaries, including a company based in Geneva that sells crude oil to European customers.

    Supertanker rates are surging again, for a second time this month, as a growing global glut is making more traders and companies look to charter carriers to store oil at sea and sell at a later date to profit from the market structure. The Saudi pledge to start flooding the market with oil as early as this week is also driving up freight rates for very large crude carriers (VLCCs). At the moment traders and the trading arms of oil majors are looking to charter tankers for floating storage as the oil market structure has flipped to contango: the market situation in which front-month prices are lower than prices in future months, pointing to a crude oil oversupply and making storing oil for future sales profitable. The run on supertankers during the massive glut and the Saudi supply surge sent supertanker rates for the route from the Middle East to China jumping to $180,000 a day on Mar.30. That’s double from the $90,000 a day rate in the middle of last week.

    It is forecasted LNG trade to grow by just 2% in 2020 due to low demand. A mild winter and a decline in Asian spot LNG prices have resulted in higher inventories in both Europe and Asia thereby impacting imports. This scenario is unlikely to change as the market enters the seasonal low-demand period. Reduced LNG demand in Europe and Asia resulted in low LNG prices globally with the UK NBP price at $2.20 per MMBtu in March 2020, falling 29% from the start of the year while Asian spot LNG price declined to $3.40 per MMBtu in February from $5.90 per MMBtu in January.

    The American Petroleum Institute (API) estimated on Mar.31 a large crude oil inventory build of 10.485 million barrels for the week ending March 28, as 75% of Americans remain under lockdown in some form or another. This inventory move was expected to be for a much smaller build of 3.997-million-barrels. In the previous week, the API estimated a surprise draw in crude oil inventories of 1.247-million barrels, while the EIA’s estimates were more bearish, reporting a build of 1.6 million barrels for the week. US crude oil production as estimated by the Energy Information Administration showed that production for the week ending March 20 slipped back slightly to 13.0 million bpd.

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




2020 May 29

18:36 Port of Marseille Fos to constuct a new international ferry terminal
18:20 Sea Port of Saint-Petersburg boosts its infrastructure investments by 40%
18:06 PIL starts a new India Service - China India Express (CIX)
17:51 Petrotrans takes delivery of lead ship of Project RSD59
17:36 Rolls-Royce seals major contract covering complete MTU propulsion systems for Royal Navy Type 31 frigates
17:14 United Shipbuilding Corporation developed its own cargo ship design
17:06 ECSA welcomes TRAN opinion on future EU-UK partnership and urges rapid advancement of the talks in view of the looming deadline
16:15 Port Authorities pledging support to keep ports open during COVID-19 more than doubles within a month
15:52 Market of seaborne cargo transportation for wind farms is stable and expected to grow
15:46 Viking Line starts a passenger service from June 1
15:05 KiwiRail orders two new ferries
14:49 Admiral Makarov University introduced new GMDSS simulator class
14:05 Bollinger Shipyards delivers the USCGC MYRTLE HAZARD to the U.S. Coast Guard
13:41 Smart Delta Resources launches project to substantially reduce CO2 emissions in Scheldt-Delta region
13:09 Record engine powers world’s largest containership
12:48 Large amphibious ships of RF Navy's Black Sea Fleet conducted comprehensive exercise in sea training ground
12:30 Navigation season opens on Upper Lena and Lower Lena rivers
12:09 Global shipping body addresses the health concerns of seafarers during the COVID-19 pandemic
11:26 Vimpel Shipyard launches coast guard boat Lamantin of river-going design
11:03 LNG STS bunkering – ‚First-off‘ operations in France, Germany and Norway
10:28 Oil prices fall by over $1
10:09 DP World joins with TradeLens to digitize global supply chains
09:53 Bunker prices are stable at the port of Saint-Petersburg, Russia
09:35 Baltic Dry Index on May 28
09:20 Konecranes to deliver third mobile harbor crane to South Australia
09:17 MABUX: Bunker market this morning, May 29
08:46 CMA CGM announces FAK rates from Asia to North Africa, Mediterranean and North Europe

2020 May 28

18:37 CMA CGM ends ESS from North Europe, Scandinavia & Poland to West Med, East Med, Adriatic & North Africa
18:07 PortXchange results in shorter idle times on departure at APM Terminals Rotterdam
17:24 Independent Container Line starts new service from Cork to USA
17:20 Antwerp@C investigates potential for halving CO2 emissions in Port of Antwerp by 2030
16:49 Nevsky Shipyard launches lead ferry of Project PV22, Admiral Gennady Nevelskoy
16:17 Finland's new Water Traffic Act enters into force in June
16:05 Lubrizol joins the Getting to Zero Coalition
15:56 Wärtsilä high-efficiency propulsion solutions selected for special high-speed ferry
15:46 ABP keeps Britain trading in the safest way possible
15:02 Bunker prices show no considerable changes at the Far East ports of Russia (graph)
14:38 Bunkering tanker intended for Baikal lake delivered to the customer
14:00 WinGD wins type approval for biggest and most powerful ever dual-fuel engines
13:00 Gasum partners up with the sustainable transport solution provider company Samskip
12:30 More Konecranes BOXHUNTER RTGs to Vietnam
12:00 Konecranes and Fluidmesh join forces to deliver world-first 100% wireless Automated Rubber Tired Gantry crane system
11:30 EPS and Equinor set sights on a trio of newbuild LPG dual-fuel vessels
11:09 Boskalis awarded two dredging contracts in Finland
10:51 Oil prices continue going down
10:30 DNV GL releases first ever traceability standard for reclaimed plastic
10:09 Port of Stockholm announces arrival of the first container ship at Norvik Port
09:44 CMA CGM announces Overweight Surcharge (OWS) from Asia to North Europe
09:37 Baltic Dry Index on May 27
09:19 Rosmorport released young trout into Ladoga lake
08:54 MABUX: Bunker market this morning, May 28

2020 May 27

18:36 Nexans wins major subsea HVDC cable contract from Greece's Ariadne Interconnection S.P.S.A
18:06 The lock gate of the Pierre Vandammelock at the port of Port of Zeebrugge gets decoupled and transported to the inner harbour for renovation works
17:36 Sales of “Honesty” - device to measure the level of liquid in tanks - exceeds 1,000 units
17:06 ZIM posts Q1 2020 results
16:58 NOVATEK-Murmansk obtains resident status at Advanced Special Economic Zone
16:31 Transport Ministry addressed with proposal to introduce criteria for coal ports to be acknowledged as dedicated ones
16:04 UN agencies call for urgent action on crew changes and keyworker designation for sea and air workers
15:59 Cai Mep International Terminal welcomes maiden call of TP17 service
15:13 Traficom extends validity of certain seafarers’ competency and proficiency certificates