• 2020 June 30 09:15

    MABUX: Bunker market this morning, June 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) dropped on June 29:

    380 HSFO: USD/MT 285.00 (-2.99)
    VLSFO: USD/MT 339.00 (-5.00)
    MGO: USD/MT 411.33 (-7.79)


    Meantime, world oil indexes rose slightly on Jun.29, supported by improving economic data and supply cuts by major producers, but held in check by sharp spikes in new coronavirus infections around the world.

    Brent for August settlement increased by $0.69 to $41.71 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for August delivery rose by $1.21 to $39.70 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.01 to WTI. Gasoil for July delivery gained $9.00 – $348.00.

    Today morning global oil indexes do not have any firm trend so far and change sideways.

    It is expected, that global oil prices could continue to chop higher in the coming months as COVID-19 shelter-in-place restrictions begin to lift. Forecasts pointed to reduced global supply and the faster-than-expected return of demand keeping both Brent and West Texas Intermediate crude prices on an upward trajectory. Most analysts see prices stabilizing between $50 per barrel and $60 per barrel by year’s end, still shy of pre-pandemic levels. It is also expected, that global oil supply is anticipated to decline by a record 7 million bpd in 2020 on the back of the organized cuts from OPEC+, which were supplemented by economically driven reductions by the U.S. and other producers.

    U.S. trade deficit in goods unexpectedly widened in May versus forecasts for a narrower deficit, due to a slide in exports mostly driven by oil. The U.S. international trade deficit in goods was US$74.3 billion in May, up by US$3.6 billion from US$70.7 billion in April. Forecasts had expected that the deficit in May would shrink from April. Economists had predicted a deficit of US$66.5 billion, while the median forecasts from the consensus were for a US$68.3 billion deficit. Meantime, U.S. exports of crude oil in April – when oil prices hit their lowest in years – plunged to US$3.205 billion from US$5.185 billion in March.

    As per different analyses, as much as 30 percent of the U.S. shale drillers could go under if oil prices fail to move substantially higher. These 30 percent are technically insolvent at oil prices of $35 a barrel. Oil is now trading closer to $35 than to $50—the level at which most shale drillers will be making money. At the same time, banks have started cutting credit lines for industry players as they reassess their assets and the production that they promised would be realized from these assets. Banks could reduce asset-backed loan availability for the industry by as much as 30 percent, which translates into tens of billions of dollars.

    European refiners are shunning Russia’s flagship crude grade Urals, which is now more expensive than Brent Crude after Russia cut its exports as part of the OPEC+ agreement. Over the past few weeks, the price of Urals, a blend of heavy sour oil from the Urals mountains and light oil from Western Siberia, has risen to a premium to dated Brent prices after Russia has significantly reduced its exports of the grade. As the price of Urals has increased, European refiners are looking into alternatives and are considering a shift to West Texas Intermediate from the United States or light oil from West Africa.

    China’s low-sulphur marine fuel exports fell 20% last month to 1.14 million tonnes compared with April, reflecting a monthly dip in demand from international shipping. Chinese refiners began exporting very low sulphur fuel oil (VLSFO) in January, with a maximum sulphur content of 0.5% to comply with emission rules set by the International Maritime Organization, after Beijing waived export taxes for domestic refiners to meet shipping demand. Exports for the first five months totalled about 5.2 million tonnes. China has been striving to reduce its reliance on bunker fuel imports and create its own marine fuel hub to supply northern Asia.

    The International Energy Agency said in its report, that natural gas is expected to experience its largest demand shock on record in 2020 as the Covid-19 pandemic hits an already weakened market. This shock will cause a 4-percent drop in global gas demand. The IEA also said the lost demand would start returning next year, but it added that the shock will still lead to lost demand of some 75 billion cu m of natural gas in the period to 2025. As per report, liquefied natural gas is expected to remain the main driver behind global gas trade growth, but it faces the risk of prolonged overcapacity as the build-up in new export capacity from past investment decisions outpaces slower than expected demand growth.

    We expect IFO bunker prices may slightly rise by 4-7 USD today, VLSFO – add 5-9 USD, MGO prices may gain 7-10 USD.




2021 June 19

15:37 BIMCO welcomes updated IMO Compendium to advance electronic data
14:19 TradeLens digital shipping platform adoption grows in China
13:49 Bimco launches initiatives to address shipping’s plastic footprint
12:31 First cruise passengers of the year in Gothenburg go ashore in a bubble
11:23 Austal Australia delivers 11th Guardian-class patrol boat

2021 June 18

19:30 Royal IHC hands over the second cutter suction dredger to Suez Canal Authority
18:02 Consolidated cargo turnover of NCSP Group in 4M’2021 fell by 18.7% YoY
17:39 Safety management of Sparta IV complies with the ISM Code
17:15 Oboronlogistics' Sparta III allowed to sail in Northern Sea Route waters
16:47 Acceptance/delivery certificate signed for non-self-propelled suction hopper dredger of Project 4395 built for Kama Basin
16:14 BIMCO publishes new standalone Refund Guarantee for Shipbuilding Contracts
15:51 FESCO opened seasonal transportation to the ports of Chukotka
15:30 CMA CGM to enhance its BSMAR service connecting Black Sea & Turkey with Morocco
15:22 Production of Icon of the Seas began at Meyer Turku shipyard
14:56 Wärtsilä signs multiple vessel support agreement with Nakilat
14:53 Multipurpose Reloading Complex puts into operation two new 5-cbm clamshell buckets
14:17 Singapore: Seven start-up grant recipients announced at launch of Smart Port Challenge 2021
13:48 The Lepse floating maintenance base no longer poses a nuclear threat to the Arctic
13:21 GLDD agrees to $1 million fine
12:59 Rosatomflot organized icebreaker escorting of LNG carrier Nikolay Urvantsev
12:54 Stena RoRo takes delivery of the lengthened vessel Stena Scandica from the Turkish shipyard
12:30 CMA CGM announces Overweight Surcharge from Asia to North Europe
11:45 Number of lock through operations on Russia’s IWW rose by 2.81%
11:02 ATLAS A-CLASS new WTIV tailored for large-scale Wind Farm Installations
10:38 Glavgosexpertiza of Russia approves project of in-depth modernization of Onezhsky Shipyard
10:02 CMA CGM announces Hazardous Surcharge from Asia to North Europe
09:53 Port of Oakland posts results for Jan-May 2021
09:40 Baltic Dry Index as of June 17
09:24 Oil prices continue decreasing
09:07 MABUX: bunker indexes may decline on June 18
08:59 DNV launches new digital EEXI Calculator

2021 June 17

18:37 PD Ports commended with top ‘Gold’ award for ongoing commitment to health and safety
18:07 Maersk advises logistics planners on hurricane season preparation
17:40 Trials of innovative smart navigation marker at Stockholm Norvik Port
17:23 Remote surveys continue to gain momentum
17:16 Konecranes instills new Generation 6 mobile harbor cranes with a genetic code for the future
17:06 MABUX: Bunker Weekly Outlook, Week 24, 2021
16:55 Sovcomflot to pay dividends in the amount of RUB 6.67 per share
16:50 KARMOL's first Floating Storage and Regasification Unit has arrived in Dakar
16:48 GTT entrusted by Hyundai Heavy Industries with the tank design for four new LNG carriers
16:18 HEMEXPO President appointed as Vice-Chair of SEA Europe
15:13 10 consecutive months of positive year-over-year growth in Savannah
14:52 Grigory Zhelokovich appointed as General Director of Astrakhan Ship Repair Yard
14:33 Royal IHC carries out maintenance work for DMI on LCF frigates
14:13 On-shore power plant at Kiel's Ostseekai inaugurated
13:54 Volga Shipping Company completes transportation of equipment for windfarm under construction in Kazakhstan
13:33 MARINE INTERIORS, Cruise & Ferry Global Expo, powered by SMM 2021 cancelled
13:33 Kalmar’s new-generation RTGs ready to enable productive eco-efficiency for container terminals
13:12 DNV and Keppel Offshore & Marine sign collaboration agreement to develop hydrogen projects in Singapore
13:00 Russia’s State Duma passes bill on obligations of investors in seaports
12:11 Covenant Energy chooses Haldor Topsoe’s HydroFlex™ and H2bridge™ solution to produce renewable diesel with low carbon footprint
11:49 RF Navy’s frigate Admiral Makarov took part in a complex exercise in the Mediterranean Sea
11:30 Global Ship Lease announces agreement to acquire four ultra-high reefer containerships on multi-year charters
11:02 Konecranes launches new generation of energy-efficient mobile harbor cranes as global trade accelerates
10:57 Port of Salalah ranked 6th globally in efficiency
10:51 Oil market sees downward price correction
10:09 MABUX: bunker indexes may demonstrate upward changes on June 17.
09:53 Port of Riga sees timber handling growth
09:30 Baltic Dry Index as of June 16
09:12 Weathernews signs strategic partnership deal with Wärtsilä