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  • MABUX: Bunker market this morning, June 26
  • 2020 June 26 09:24

    MABUX: Bunker market this morning, June 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) dropped on June 25:

    380 HSFO: USD/MT 285.64 (-6.47)
    VLSFO: USD/MT 341.00 (-7.00)
    MGO: USD/MT 419.06 (-8.15)


    Meantime, world oil indexes changed irregular on Jun.25, after U.S. crude storage hit another record and coronavirus cases rebounded in countries like Germany and surged in heavily populated areas of the United States.

    Brent for August settlement increased by $0.74 to $41.05 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for August delivery rose by $0.71 to $38.72 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.33 to WTI. Gasoil for July delivery lost $1.25 – $344.50.

    Today morning global oil indexes continue slight upward trend.

    OPEC considers oil markets are now well onto the path of recovery for the second half of the year after suffering historic price drops in the first half of 2020. Cartel acknowledged the demand destruction to oil markets as a result of the COVID-19 outbreak, with demand falling by 20 to 24 million barrels per day. With energy investments also forecasted to contract by as much 20 per cent, or $1.5 trillion, this would make it critical to ensure investments are brought back into the sector to avoid an energy crisis. The main imminent challenge oil markets face is the risk of second pandemic wave, which could curtail demand again.

    The United States on Jun.24 imposed sanctions on five Iranian ship captains who had delivered oil to Venezuela. The ships delivered around 1.5 million barrels of Iranian gasoline and related components. The Trump administration, which is seeking both to block Iran’s energy trade and bring down Maduro, has threatened reprisals and warned ports, shipping companies and insurers against facilitating the tankers. Iran has since April sent five tankers totalling about 1.5 million barrels to the leftist government of fuel-starved Venezuela.

    The rising number of coronavirus cases among workers at Nigeria’s offshore oil fields and platforms is a growing concern for Africa’s largest oil producer, with disruption to output likely. Maintenance at the offshore Bonga oil field has already been disrupted after the operator, Shell, was forced to evacuate workers due to a coronavirus outbreak. Nigeria, Africa’s biggest oil producer has recorded 21,371 cases of coronavirus. This comes as Nigeria was starting to cut its crude output in line with its OPEC+ obligations. According to preliminary estimations, Nigeria produced nearly 300,000 b/d in excess of its 1.412 million b/d quota in May.

    According to a number of analyses, it will take years before U.S. shale production approaches pre-pandemic levels, if it ever does. None of them saw U.S. oil production returning to 13 million barrels per day (bpd) within the next few years. Comments from a handful of shale companies about restarting drilling now that WTI is in the high-$30s garnered a lot of attention in recent weeks. The run up in pricing has somewhat eased the panic in the oil industry. It estimates that the restart of shut in shale wells will bring 500,000 bpd back online. Meantime, the rig count is down by more than 70 percent, and the lack of new drilling will translate into steep decline rates, overwhelming the one-off jump in output from opening up shut-in production.

    The amount of crude stored on tankers is showing signs of a slight descent in response to the waning economics for storage as production cuts and a measured demand recovery aids a rebalancing of the global oil market. The slowdown in storage is already starting to have a significant impact on spot freight rates. Floating storage reached its peak earlier this month but with demand recovering, some of the storage is being emptied out, which has helped push oil prices near four-month highs this week. There are currently close to 190 million barrels of crude on floating storage compared with 200 million barrels earlier in the month. The data estimates the volume of oil on tankers that are idled offshore for seven days or more.

    The International Energy Agency (IEA) called for the European Union to accelerate low-carbon building renovations and introduce schemes to encourage consumers to replace inefficient old cars and fridges as part of a post-pandemic "green" recovery. Setting out its policy recommendations for the EU, the IEA said new policies would help ensure the European Commission's proposed 750 billion euro recovery fund boosts clean energy and avoids a sustained rebound in emissions after the pandemic. As the Commission aims to steer the bloc towards becoming climate neutral by 2050, the IEA said energy-saving stimulus investments should be a "prime target".

    Iran plans to export oil from a port on its Gulf of Oman coast by March: a shift that would avoid using the Strait of Hormuz shipping route that has been a focus of regional tension for decades. Tensions have spiked between Tehran and Washington since 2018, when the United States withdrew from a 2015 nuclear pact between Iran and six major powers and President Donald Trump reimposed sanctions on Iran, hammering its vital oil exports. Iran has often threatened to block the Strait if its crude exports were shutdown by U.S. sanctions, a move Washington has said would cross a "red line" and would demand a response.

    We expect IFO bunker prices may slightly rise by 1-3 USD today, VLSFO – add 3-5 USD, while MGO prices may change irregular in a range of plus-minus 1-3 USD.




2022 July 6

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
16:29 ClassNK releases latest “PrimeShip-PSC Intelligence” mobile application
15:56 Sovcomflot shareholders decide not to allocate payment of dividends
15:34 TGS named successful bidder in the auction process for ION assets
15:34 Vestas secures 266 MW order in the USA
15:18 Saudi Global Ports awards contract for future-ready quay cranes to Shanghai ZPMC
15:00 Berth in Ugolniye Kopi is 50% complete — Chukotka Governor
14:39 Fire at Mongstad extinguished - Equinor
14:21 ClassNK releases comprehensively revised structural rules
14:10 ASCO's ferry Professor Gul returns to operation after overhaul
13:47 Petrofac and Hitachi Energy to collaborate in growing offshore wind market
13:34 Fishery Shipowners Association President Aleksey Osintsev to speak at Ship Repair, Modernization and Components Conference
13:17 Boskalis expands presence in the US with opening of new offshore renewables office in Providence, Rhode island
12:55 Amur Shipyard lays down corvette Bystry of Project 20385
12:33 BPA's statistics review shows three-month port traffic was up 7.3% to 111.8 million tonnes
12:19 Brisbane offers world-class facilities as it joins global cruise revival
12:03 Eidesvik Offshore ASA appoints new CFO