• 2020 April 21 09:45

    MABUX: Bunker market this morning, Apr 21

    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) slipped lower on Apr.20:

    380 HSFO - USD/MT - 234.81(-2.69)
    VLSFO - USD/MT – 273.00 (-2.00)
    MGO - USD/MT – 359.55 (-3.03)


    Meantime, world oil indexes fell on Apr.20 with a U.S. crude futures contract hitting its lowest level ever, depressed by concern that U.S. crude storage will soon be full while companies prepare to report the worst quarterly earnings since the financial crisis. Besides, sell-off was exaggerated by the contract’s imminent expiry.

    Brent for June settlement decreased by $2.51 to $25.57 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May delivery fell by $55.90 to minus $37.63 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $63.20 to WTI. Gasoil for May delivery lost $13.75.

    Today morning global oil indexes do not have any firm trend so far.
     
    An extreme situation has developed in the U.S. crude oil futures markets, as the current front-month May contract expiring on Apr.21 turned negative for the first time in history, opening up the widest gap ever between it and the next contract, nearly $61 a barrel. That gigantic spread is the result of the shocking fall in demand due to the coronavirus pandemic and glut of global crude supply hitting the markets all at once. While oil-producing nations have inked a deal to cut output, those cuts will not come quickly enough to avoid a massive clog in the next couple of weeks. With U.S. oil prices trading in negative territory, that means sellers have to pay buyers for the first time ever to take oil futures. Futures traders, who would normally be able to shift from the expiring contract to the next, were finding very few buyers for the expiring May contract.

    The volume of oil held in U.S. storage, especially at the Cushing delivery point for the U.S. West Texas Intermediate (WTI) contract in Oklahoma, is rising as refiners throttle back activity in the face of weak demand. Oil in floating tanker storage is also estimated at a record 160 million barrels. The mood in other markets was also cautious as the first-quarter earnings season gets underway. The German economy is in severe recession and recovery is unlikely to be quick, given that many coronavirus-related restrictions could stay in place for an extended period. Japanese exports declined the most in nearly four years in March as U.S.-bound shipments, including cars, fell at their fastest rate since 2011.

    The Russian energy ministry has told domestic oil producers to reduce oil output by around 20% from their average February levels, which would bring Moscow in line with its commitment under a global deal. OPEC+ agreed to cut their combined oil output by 9.7 million barrels per day (bpd) in May and June in order to combat oversupply triggered by the coronavirus crisis. Under the deal, Moscow has to cut its oil production by 2.5 million bpd from May and using the reference level of 11 million bpd - the figure which includes crude oil only and exempts gas condensate, a type of light oil.

    Rystad Energy had been projecting an increase in US shale production of 650,000 bpd by the end of this year, but recent developments have caused it to take a more pessimistic view of what’s to come in the shale industry. As a result, Rystad has lowered its projected change in output for the year by 2.15 million barrels per day. Additionally, it cautioned that this figure may slide even further. So instead of shale production increasing by 650,000 bpd, Rystad is now expecting production to decrease by 1.5 million bpd by the end of 2020.

    Tanker owners could be hit with lower demand for their vessels in a few weeks’ time. Amidst an oversupplied oil market and expectations of production cuts and consequent oil price hikes, the large contango effect has made profitable several storage plays during the past couple of months, occupying a lot of ships as a result, while in addition to that, several countries decided to increase to the maximum their strategic petroleum reserves (e.g. the US SPR already has 634 million barrels in storage vs. a total capacity of 713 million barrels).

    OK Lim, the founder of the Singapore oil trader Hin Leong, is said to have instructed the company’s accounts team not to disclose around $800 million in futures trading losses. Hin Leong’s financial difficulties first came to public notice when it was reported that a number of financial institutions had refused to issue new letters of credit to the company because it could no longer service its debts. It was also reported that subsidiary company Ocean Bunkering Services Pte Ltd (OBS) planned to put bunker supply operations on hold. Hin Leong and subsidiary Ocean Tankers have now filed for court protection from creditors.

    The European Sea Ports Organisation (ESPO) and the Federation of European Private Port Operators (FEPORT) have spoken out against the European Commission’s proposal for a network of ports providing ‘fast-track’ crew changes – arguing that Member States should facilitate crew changes in all of their seaports. As per statement, neither technically nor economically is it feasible to restrict crew changes to only a select group of main ports.

    We expect bunker prices may react downward today in a range of minus 10-25 USD.




2021 July 29

12:13 Sembcorp Marine bags 24 Workplace Safety and Health Awards
11:46 Ongoing travel restrictions continue to impact Tallink Grupp financial results in Q2 2021
11:08 MARAD awards vessel acquisition management contract to Crowley
10:43 Rosmorport’s tugboats assisted sailing boat Pallada mooring in Egvekinot and Provideniya ports
10:08 Thun Tankers announces the launching of product tanker Thun Empower
10:00 British Ports Association welcomes the resumption of international cruise in England
09:35 Baltic Dry Index as of July 28
09:18 SCHOTTEL to deliver a total of ten rudder propellers and two transverse thrusters to Sanmar Shipyards
09:09 Crude oil prices rise on reduction of US reserves
08:00 Verifavia shipping highlights widespread confusion over EEXI technical parameters
07:55 Drewry launches shipmanager Steering Group to power vessel opex benchmarking

2021 July 28

18:20 NOVATEK announces consolidated IFRS results for Q2 and H1 of 2021
18:01 New BIMCO/ICS Seafarer Workforce Report warns of serious potential officer shortage
17:09 PSA & ONE team up to enhance sustainability and reduce maritime environmental footprint
16:28 ECSA and ETF welcome WHO decision to prioritise seafarers’ vaccination
16:03 Rosmorrechflot supports the International Conference “Development of Icebreaking and Support Fleet”
15:42 ERMA FIRST adds world’s smallest ballast water treatment system to product range
15:18 DCT Gdańsk and the Port of Gdańsk enter a new era of container handling on the Baltic Sea
14:51 Oleg Shakhmardanov appointed as head of FSBI Moscow Canal
14:10 MAN wins the world-first order for methanol engine within container segment
13:56 Amursky Shipyard should enter the APR markets – Prime Minister Mikhail Mishustin
13:14 Norcod finalizes transfer of 2.4 million fish into sea phase
12:55 Captain Guryev, rescue vessel of RF Navy's Black Sea Fleet passed the Suez Canal
12:32 Onezhsky Shipyard to get first federal tranche of RUB 1.3 billion for creation of ‘digital shipyard’ this year
12:13 DNV backs crew change programme in South East Asia
11:10 Firth of Forth proposed as Scotland’s Green Port
10:38 The Port of Gdansk welcoms the first cruise ship of the season
10:10 Andrey Severilov re-elected Chairman of the Board of Directors of FESCO
10:03 Haldor Topsoe and Yanchang form joint venture and build methanol catalyst facility in China
09:47 FESCO held repeated Annual General Meeting of Shareholders
09:28 Crude oil prices rise on reduction of US reserves
09:12 Baltic Dry Index as of July 28
09:05 Neal elected Long Beach Harbor Commission President
08:59 Seanergy announces delivery of one Capesize vessel and new bank loan facility

2021 July 27

18:34 Port of Kaohsiung wins International Association of Ports and Harbors (IAPH) 2021 Award
18:16 Port Houston launches business equity program
17:56 The UK’s most eastern port welcomes the maiden call of Noble Caledonia’s flagship vessel
17:36 ONE offers free transportation of oxygen tanks to India to fight the COVID-19
17:06 Pilbara Ports Authority launches its annual Recreational Vessel Safety Campaign
16:42 Carbon Trust to support BEIS in development and demonstration of innovative floating offshore wind technologies for the UK
16:14 Cargo Integrity Group calls for risk-based measures to prevent pest contamination
16:03 Passengers travelling via the Port of Helsinki should prepare for occasional congestion
15:33 APM Terminals Mobile targets Midwest supply chains
15:02 MOL jointly develops new energy-saving sail to boost ship propulsion
14:42 ICTSI South Pacific starts bulk coffee operations
14:24 GTT receives an order for the tank design of six new LNG carriers
14:11 IPEM and IAA PortNews launch their joint analytical project on cargo handling in Russian seaports
13:42 Port of Savannah moves 5mln TEUs in H1 2021
13:29 Launching of sea cruise between Aktau and Astrakhan under consideration
13:12 Port of Zeebrugge posts results for H1 2021
12:52 MSC takes delivery from Fincantieri of MSC Seashore
12:25 ABS leads EMSA consortium studying alternative fuels and technologies
12:12 IADC reveals the fifteen nominations in the running for the IADC Safety Awards 2021
11:44 FESCO performs its first intermodal shipment of containers with shoes from China to Krasnodar via CPV
11:26 MSC, Fincantieri and Snam to partner for world’s first oceangoing hydrogen-powered cruise ship
11:10 Yang Ming takes delivery of one more 11,000 TEU ship to upgrade Trans-Pacific service
10:45 The President of the European Council Charles Michel was briefed on the capabilities of the Port of Baku
10:39 Damen Marine Components awarded contract to provide rudders and steering gear for Navantia
10:23 DCT Gdańsk and the Port of Gdańsk enter a new era of container handling on the Baltic Sea
09:59 CMA CGM to launch a new RORO Short Sea Med service connecting Marseille & Barcelona with Casablanca