• 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.




2020 July 11

15:28 Cox Powertrain celebrates as first 300hp diesel outboards roll off the production line ready for delivery
14:51 WCI names Tracy R. Zea as President & CEO
13:45 NOS expands its fleet with two additional M-Class vessels
11:37 Huisman to deliver 250mt Knuckle Boom Crane and 500mt Towing Winch for Nanhai Rescue Bureau
10:52 Wabtec wins federal order for advanced marine engines on new multi-use ships

2020 July 10

19:08 CMA CGM announces FAK rates from Asia to the Mediterranean
18:30 CMA CGM announces FAK rates from Asia to North Europe
18:04 HHLA implements machine learning for the first time to increase productivity
18:01 Port of HaminaKotka throughput in 6M’2020 fell by 14.2% YoY
17:38 Information on the seaport of Murmansk changed in the Register of Russian Seaports
17:13 Thun Tankers takes delivery of the fifth L-class at China Merchants Jinling Shipyard
16:52 Russian Railways: Loading of export cargo bound for domestic ports up 3.3%
16:33 Valenciaport reaffirms its leadership as the first Spanish port at UNCTAD index
16:03 Port of Marseille to maintain €57 million in investments to stimulate the recovery
15:43 DNV GL launch support for new Dynamic Positioning system failure guideline enabling quicker and cost effective implementation
15:30 Volga Shipping Company delivered project cargo to the Caspian Sea
15:13 COVID-19 causes problems for implementing EU legislation - BIMCO
14:48 Throughput of Russian seaports in HI’2020 grew by 0.1% Y-o-Y
14:23 Wärtsilä simulator complex delivered to enhance operations at the Training and Education Office of the Indonesian National Police
14:03 Port of Oakland imports up 1.9 percent in June 2020
13:44 Onezhsky Shipyard delivers hybrid workboats Anatoly Klimov and Victor Vorotylo (video)
13:22 Governments of 12 countries pledge action for seafarers at crucial crew change summit
13:19 GTT receives an order from Hudong-Zhonghua Shipbuilding for the tank design of three new LNG carriers
13:01 Sredne-Nevsky Shipyard commenced making hull of yet another minesweeper of Project 12700, Aleksandrit
12:38 Throughput of Murmansk Sea Fishing Port fell by 12.7% in HI’2020
12:13 Nuclear-powered icebreakers of Rosatomflot assisted 462 ship calls in winter-spring navigation season
11:35 Construction commences on Austal's largest ever ferry
11:04 GIWACAF launches webinar series on oil spill preparedness and response
10:46 FSUE “Rosmorport” takes award-winning place in the annual sailing regatta
10:32 LR to develop structural digital twin for Bluewater FPSO Glas Dowr
10:22 Rosmorport changes tariffs on berth assignment services in Astrakhan and Olya seaports
09:59 Bunker prices are slightly up at the Port of Saint-Petersburg, Russia (graph)
09:37 Oil prices decrease amid concern over demand recovery rates
09:20 Baltic Dry Index as of July 9
09:11 MABUX: Bunker market this morning, July 10

2020 July 9

19:03 OOCL receives Gold Award from the HKAEE for the fourth time
18:10 Aquila Power Catamarans announce a luxuriously versatile new model
17:55 Tallink Grupp’s vessel Sailor to operate on Paldiski-Kapellskär Route from Sunday
17:31 Bunker prices are flat at the Far East ports of Russia (graph)
17:28 Port of Rotterdam to start trial with PIN-free container handling
17:18 Damen holds keel-laying for Port of Auckland’s fully electric RSD-E Tug 2513
17:12 Diana Shipping announces time charter contract for m/v Selina with ST Shipping
16:44 "K" Line participates in JV for FPSO owning and chartering business offshore Brazil
16:23 Jan De Nul Group has started offshore installation activities in Taiwan
16:06 Port of Liepaja throughput in 6M’2020 fell by 15.6% Y-o-Y
15:48 Russia remains in Paris MOU’s White List
15:24 PD Ports submit response to national Freeport consultation
15:03 Khabarovsk Territory Governor Sergey Furgal detained by officials of Russia’s Investigative Committee
14:39 Aibel awarded Oseberg portfolio agreement
13:47 Ukraine is still on Paris MOU’s Black List
13:22 MOL announces joint development of energy-saving rudder
12:50 Container shipments on Russian Railways’ network up 15% in 1H 2020
12:17 Cargo transhipment in North Sea Port falls by more than 11% in first half of year
12:07 ABB teams up with Yinson on offshore oil and gas project in Brazil
11:20 FPSO operators could save £15 million per asset on maintenance
10:42 The CMA CGM Group commits to fight illicit trafficking in protected species and tightens its shipment control procedures
10:10 Unifeeder contracts We4Sea for fleetwide vessel performance monitoring
09:38 MABUX: Bunker market this morning, July 09
09:29 Oil market sees mixed price movements
09:13 Baltic Dry Index as of July 8