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  • MABUX: Bunker market this morning, June 08
  • 2020 June 8 09:13

    MABUX: Bunker market this morning, June 08

    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 upward trend on June 05:

    380 HSFO: USD/MT 277.44 (+3.55)
    VLSFO: USD/MT 318.00 (+4.00)
    MGO: USD/MT 389.35 (+2.75)


    Meantime, world oil indexes pushed higher on Jun.05, amid expectations major oil producers would meet over the weekend to discuss extending record production cuts.

    Brent for August settlement increased by $2.31 to $42.30 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for July delivery rose by $2.14 to $39.55 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.75 to WTI. Gasoil for June delivery gained $28.00.

    Today morning global oil indexes continue firm upward evolution supported by OPEC+ cut deal.
     
    Demand for oil is improving after lockdowns started being lifted in Asia, Europe, and North America. China's oil demand, notably, has recovered to 90 percent of pre-crisis levels, and U.S. demand is also on the rise, judging by rising refinery runs. Supply is still being limited, too. OPEC+ started cutting its agreed 9.7 million bpd last month, and despite far from perfect compliance, it has reduced the amount of oil going into markets. U.S. producers also cut production significantly in April and May, and so did Canadian oil companies.

    OPEC and its partners concluded their meeting on Jun.06, announcing that it would extend its current production cut deal. The last couple of days, the cartel’s de-facto leader Saudi Arabia negotiated with other OPEC members and some non-OPEC countries including Russia, Kazakhstan and Azerbaijan to extend the current 9.7 million bpd output cuts for at least another month. Most countries partaking in the record production cuts were willing to continue the current deal, but poor compliance from countries like Iraq, Nigeria and Kazakhstan has caused discontent among other OPEC members, some of which have even made deeper cuts than agreed on in April. During the virtual meeting on Jun.06, the cartel agreed that the countries that were unable to reach full conformity in May and June will have to compensate for this in July, August and September.

    Russia is predicting a shortage in the oil market next month. It is expected the global oil markets could see a shortfall between three and five million barrels per day in July. It was also noted that the filling up of oil storage has slowed, and that thanks to the current production cuts and the improving demand figures so far, the market should achieve balance in June, before slipping into a deficit in July.

    Russia’s Rosneft has set up a new trading arm to replace the one that Washington sanctioned earlier this year for the company’s work with the Venezuelan government. The U.S. administration slapped sanctions on the Russian state oil giant in February as part of its maximum pressure campaign against the Maduro government. Following the announcement, Rosneft cancelled several VLCC cargoes carrying a total 5.7 million barrels of Venezuelan crude to be delivered to Asian buyers. The company also transferred its Venezuelan assets to a newly set-up Russian state-owned company dubbed Roszarubezhneft. Moscow paid for the Venezuelan assets in Rosneft stock.

    U.S. shale producers are beginning to restart their shut-in wells. This is a necessity for many of them: the longer a well stays shut-in, the higher the risk of losing production. But this also means production will be coming back when storage facilities are still full. Demand cannot recover this fast, and fuel inventories are proving it: for two weeks now, gasoline and distillate fuel inventories in the U.S. have been rising, with the latest weekly data showing a 2.8-million-barrel rise in gasoline and a 9.9-million-barrel increase in distillate fuel stockpiles.

    China’s crude oil imports jumped by 13 percent from April to near record-highs of 11.11 million bpd in May, due to favorable spreads of the Shanghai-traded yuan-denominated oil futures and a ramp-up in refinery throughput. China’s crude oil imports in May were up by 1.28 million bpd compared to April and up by 1.27 million bpd compared to May last year. Apart from the Shanghai crude futures and recovering crude processing rates, another factor in China’s near-record imports of crude was the fact that the independent refiners continued to actively procure oil, most likely because of the low prices.

    U.S. lawmakers have sought to pass a bill to levy sanctions on the Nord Stream 2 project, which the United States sees as further undermining Europe’s energy security by giving Russian gas giant Gazprom another pipeline to ship its natural gas to European markets. Germany, the end point of the Nord Stream 2 pipeline, looks at the economic benefits of the project, while the U.S., including President Donald Trump, have been threatening sanctions on the project and even on Germany over its support for the project. At the end of 2019, the U.S. included in its massive defense bill for 2020 sanctions on companies helping Gazprom to complete Nord Stream 2. Russia is now using its own vessels to complete the pipeline laying.

    The number of oil and gas rigs in the US fell again last week by 17, falling to 284, with the total oil and gas rigs sitting at 691 fewer than this time last year. The number of oil rigs decreased for the week by 16 rigs, bringing the total to 206—compared to 789 active rigs in play this time last year. The significant fall in the rig count over the last couple of months is also reflected in the steady decline of EIA’s estimate for oil production in the United States, which fell again last week to 11.2 million barrels of oil per day on average for week ending May 29, which is 1.9 million bpd off the all-time high and 200,000 bpd lower than the week prior. It is the ninth straight weekly production decline.

    We expect IFO bunker prices may gain US$ 12-15 today while MGO prices may rise by US$ 20-25.




2022 July 6

18:16 Port of Oakland posts its container volume in May
18:00 Port of Kaliningrad expected to see a 25-pct decrease of throughput to 8 million tonnes in 2022
17:39 Gascade and Fluxys team up on two key infrastructure projects to ramp up the hydrogen economy in Germany
17:12 Strengthening port security in Tunisia
17:06 PIL announces contract to build four 8,000 TEU LNG dual-fuel container vessels
16:43 Cargo traffic within Azov-Don Basin of Russia’s IWW in H1’2022 totaled 1.4 million tonnes, down 57% YoY
16:21 MSC and Fincantieri announce the construction of two next generation cruise ships
16:07 TotalEnergies quits Russia's Kharyaga oil project - Reuters
15:57 Russia’s State Duma approves Draft Law on countersanction information
15:15 India, Iran to activate new shorter corridor to Russia - The Tribune
14:55 CPC-R requests to suspend execution of the judge's Ruling on administrative suspension of company's activities
14:32 Svitzer announces the purchase of a new tug to support terminal operations in Milford Haven, UK
14:18 Tallink Grupp reports 174.3% increase of passenger transportation in June 2022
14:02 ClassNK releases “ClassNK Technical Journal”
13:34 TechnipFMC awarded iFEED contract by Equinor for BM-C-33 project in Brazil
13:06 Nordic Engineering to speak at Ship Repair, Modernization and Components Conference about modernization of research vessels
12:01 Concordia Maritime sells the P-MAX vessel Stena Paris
11:39 MV Kholmogory to deliver first batch of cement to Kaliningrad
11:34 Germany prepares Uniper bailout - Handelsblatt
11:12 OPEC secretary-general is dead, Nigerian officials announce - AP
11:03 CMA CGM to implement Bunker Recovery Adjustment Factor to all West African ports
10:51 Krasnoye Sormovo shipyard delivers dry cargo carrier of Project RSD59 Sergey Volkov to GTLK
10:27 ECOWAS lifts sanctions against Mali
10:10 Novorossiysk Court orders Caspian Pipeline Consortium to suspend its activities for 30 days
09:55 TT Club highlights long-term changes to supply chain risk profiles
09:22 Throughput of port Kavkaz in H1’2022 fell by 26% Y-o-Y
09:08 MABUX: Global bunker prices to decline sharply on Jul 06
08:44 Turkey to try to reach outcome on grain corridor with Russia, Ukraine soon - Daily Sabah
08:13 The EU isn’t yet equipped to receive enough LNG to replace Russian gas entirely - Bloomberg

2022 July 5

19:44 Termination of oil and gas supplies to Japan from Russia is possible – Deputy Chairman of the Security Council of the RF
18:23 Norled accepts delivery of second newbuild zero-emission battery-powered Ropax Ferry from Sembcorp Marine
17:56 BAM and Transsib failed to deliver 70 million tonnes of cargo in 2021 - Yury Trutnev
17:31 DNV recognizes Arcadia Shipmanagement’s Aegean Myth as the first verified SEEMP III vessel
17:11 Wartsila supplies battery to Pivot Power as part of cutting-edge Energy Superhub Oxford project
16:53 Lotos Shipyard launches first self-propelled dredger of Project 93.159
16:24 Russia may ramp up its gas supplies to Asian markets to a level close to its exports to EU in a decade - IEA
16:17 Siemens Gamesa secures deal to supply 75 MW for South Korea’s third largest wind farm
15:33 DeloPorts completed full repayment of bond issue for RUB 3.5 billion
15:11 TAQA, Heerema, and AF Offshore Decom completed decommissioning project in Brae Field
15:04 ABP launches 1m sq ft development site at Port of Grimsby
14:52 Edda Wind appoints new COO
14:21 APM Terminals takes the next step on its strategic journey
14:05 Bunker sales at Vladivostok port in H1’2022 fell by 25% YoY
13:46 Throughput of Azov port in H1’2022 fell by 18% YoY
13:28 Strike affecting Equinor-operated fields on the Norwegian continental shelf
13:19 Ulstein's trawler design for Bluewild is one of three nominees for innovation award
12:41 New quayside unveiled at Port of Nigg
12:17 DEME announcement of the Member State of origin
11:51 Vladimir Potanin: we are ready to discuss merger of Nornickel and Rusal
11:29 MPCC placed orders for two carbon-neutral 1,300 TEU newbuildings
10:56 RZD Logistics launches new railway container service on eastern branch of North-South ITC
10:18 HHLA and Eurogate make joint declaration on cooperation talks
09:57 Russian Maritime Register of Shipping supports Ship Repair, Modernization and Components Conference
09:35 Russia’s internal container traffic in H1’2022 rose by 5.1% YoY
09:14 MABUX: Upward changes to continue on Global bunker on Jul 05

2022 July 4

18:22 Vestas pioneers world’s first hydrogen-powered offshore service vessel
17:59 Plans on modernization of BAM and Transsib are outdated - Yury Trutnev
17:53 MARIN to have new defense department with Pepijn de Jong as manager
17:28 World's largest civilian hospital ship in port in Senegal
16:47 Programme on development of diesel engines manufacture to cover domestic demand in full - Mikhail Mishustin