• 2020 September 17 09:16

    MABUX: Bunker market this morning, Sept 17

    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) demonstrated firm upward trend on September 16:

    380 HSFO: USD/MT 291.76 (+3.81)
    VLSFO: USD/MT 336.00 (+4.00)
    MGO: USD/MT 407.52 (+1.63)


    Meantime, world oil indexes continued upward evolution on Sep.16 as a hurricane closed U.S. offshore oil and gas production and an industry report showed U.S. crude inventories decreased.

    Brent for November settlement rose by $0.22 to $42.22 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for October delivery increased by $1.88 to $40.16 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.06 to WTI. Gasoil for October delivery gained $5.25 – $325.25.

    This morning, global oil indexes have turned into slight downward movement.

    A hurricane in the U.S. disrupted offshore oil and gas production. More than 25% of U.S. offshore oil and gas output was shut and export ports were closed as Hurricane Sally sat just off the U.S. Gulf Coast. Current estimate for the total outage associated with the Sally weather system is between 3 million and 6 million barrels of oil over approximately 11 days.

    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 4.4 million barrels from the previous week. At 496.0 million barrels, U.S. crude oil inventories are about 14% above the five year average for this time of year. Forecasts had expected an inventory build of a bit over 2 million barrels for the period, after last week the EIA reported a build of the same amount for the first week of September. Driving season has been weak this year, unsurprisingly for many, although some still hoped that it would lead to major drawdowns in both crude oil and gasoline inventories in the world’s largest oil consumer. Once it ended, more builds can reasonably be expected.

    OPEC and allies such as Russia are unlikely to announce further curbs to oil output this week despite a price drop, sources told Reuters, and will extend the period for countries like Iraq and Nigeria to compensate for earlier overproduction. OPEC and allies, a group known as OPEC+, have been reducing production since May to support oil prices after global demand plunged in the wake of the coronavirus pandemic. In the latest round of cuts, OPEC+ has been reducing output by 7.7 million barrels per day or around 8% of global demand, while asking Iraq and others to pump below their quota in September to compensate for overproduction in May to July. A virtual meeting on Sep.17, known as the joint ministerial monitoring committee (JMMC), will likely extend the compensation period into October and November to allow Iraq and others to catch up with their targets.

    Meantime, Iran has raised oil production from the oilfields in its southwest it shares with Iraq to 400,000 barrels per day (bpd) from 70,000 bpd in the past seven years. Iran officially launched in August the first phase of the oil-transfer chain of the West Karoun oilfields - with a daily delivery capacity of 460,000 bpd of heavy crude oil and 254,000 bpd of light crude oil to export terminals. Also in August, Iran signed a total of 13 oil contracts with 14 domestic firms, which will raise the Islamic Republic’s oil production capacity by 185,000 bpd. The 13 deals are worth a total of US$1.78 billion (1.527 billion euro).

    Vitol Group said inventories have been falling sharply and will continue to decline this year. Trafigura Group, the second-biggest trader, says the market will go back into a surplus. Both companies forecast demand to stagnate and foresee a volatile few months before a gradual recovery next year. As per Vitol, Global stockpile growth peaked at about 1.2 billion barrels in early summer and inventories have since been drawn down by about 300 million barrels. It is expected, they should drop by a further 250 to 300 million barrels in the last four months of the year.

    China has supported oil markets with its purchases of record volumes of crude oil in recent months, but it has also imported doubled volumes of fuel blending products, suggesting that the fuel demand recovery in the world’s top oil importer may be more impressive than expected. China’s imports of the so-called mixed aromatics, used in gasoline production, doubled between January and July 2020 compared to the same period last year. Chinese imports of light-cycle oil (LCO), which is used in blending for diesel production, soared 115 percent in the same period. It is quite possible, that actual Chinese fuel demand, which has recovered quickly, may be higher than official figures show.

    We expect IFO bunker prices may rise today in a range of plus 8-12 USD, while MGO prices may also gain 3-5 USD.




2020 September 18

18:53 Russian ports switch to unified digital platform for daily scheduling of vessels layout and traffic
18:17 KR issues world’s first cyber security class notation to HHI for very large LPG carriers
17:59 Rosmorport takes part in TRANSTEC International Transport Corridors Forum
17:37 Land purchase in Saint Petersburg: new service center for SCHOTTEL in Russia
17:26 Start-ups invited to enter competition to win £75,000 grant to develop innovate port technology
17:11 New high-speed passenger ship put into operation in Yamal-Nenets Autonomous District
17:06 SEACOR Marine forms new Sustainability Council to lead enhanced ESG program
16:51 District awards $15.4 million contract to dredge Freeport Lower Stauffer Reach channel
16:48 DP World and Dubai Customs to assess opportunities to develop trade links between UAE and Israel
16:30 Gazprom Nedra and Marine Rescue Service test SeaDrone MG in Arctic conditions
16:09 SG-STAR Fund: First global tripartite initiative to support countries for crew change
16:02 IUMI raises concerns over increased accumulation risk for yachts and inland vessels
15:43 USCG releases new plan to protect global maritime security
15:08 CMA CGM informs of revised port charges in Ghana
14:51 Bunker prices are stable at the Port of Saint-Petersburg, Russia (graph)
14:24 Goods traffic between North Sea Port and hinterland by inland waterways continues to increase
14:07 Vostochny Port installs four more dust capturing units
13:10 Last jackets to leave Dubai and head for the Moray East offshore wind farm
12:53 Admiralteiskie Verfi shipyard starts assembling major equipment on two trawlers for RFC
12:22 Reconstruction of Klaipeda Seaport breakwaters to increase competitiveness of economy in Lithuania
12:01 Kalmar to support DP World’s continuing expansion at Caucedo with new terminal tractors and empty container handlers
11:03 Naming ceremony held for Japan’s first LNG bunkering vessel
10:48 BIMCO introduces new PIs and KPIs to help improve performance
10:16 ECSA publishes study on implications of EU ETS for shipping
10:10 Keel laying of Tallink’s newest vessel MyStar takes place in Rauma shipyard, Finland
09:54 Port of Oakland import volume up for third straight month
09:51 MABUX: Bunker market this morning, Sept 16
09:47 Tallink Grupp’s vessel Baltic Queen arrives in Riga for the first time
09:23 Oil prices rise after a recent decrease
09:09 Baltic Dry Index as of September 17

2020 September 17

18:05 Digital Twin Ready certification awarded to Furuno
17:54 Damen launches Marine Aggregate Dredger for Hanson
17:52 Verifavia launches industry’s first “3-Way Plug & Play” dashboard
17:41 Nord Star officially listed as first resident of RF Arctic Zone
17:30 ITF and IMEC contribute US$500,000 to the Singapore Shipping Tripartite Alliance Resilience
17:06 Azerbaijan State Marine Academy offers skills development and advanced training courses for ASCO employees
16:43 Ship banned in Australia for AUD $118,000 in unpaid crew wages
16:15 COVID-19 is negatively impacting the offshore energy insurance sector, but market is beginning to harden, says IUMI
16:00 Gasum secures contract with Celsa Armeringsstål AS including LNG deliveries and new terminal
15:42 Diana Shipping announces the sale of a Panamax dry bulk vessel
15:28 FESCO launches regular intermodal service for seafood delivery from Far East to China
15:18 MABUX releases Bunker Weekly Overview
15:09 IMO-Singapore webinar charts ways forward for decarbonisation of shipping
14:15 Bollinger awarded contract for state-of-the-art floating dry dock for the US new Columbia Class ballistic missile submarine
13:56 Bunker prices are going down in the Far East ports of Russia (graph)
13:32 LR accepted by MarinTrust as a new registered Certification Body
13:10 Rosmorport announces expansion of Onega seaport limits
12:33 Lead nuclear-powered icebreaker of Project 22220, Arktika, leaves for Murmansk on September 22
12:01 Konecranes wins order for two more mobile harbor cranes from ZHD Stevedores in the Netherlands
11:30 Abu Dhabi Ports’ Smart Container Initiative to cut emissions by half
11:05 New rail link opens between Oslo and the Port of Gothenburg
10:54 CMA CGM announces FAK rates from Pakistan to North Europe, North Africa and Mediterranean
10:52 Fleet of Rosmorport’s Astrakhan Branch expanded with Nerpa aerosleigh
10:29 Rosmorport signs contract with Marine Rescue Service for reconstruction of Vanino-Kholmsk ferry crossing
10:04 Powers of Konstantin Palnikov as RS General Director extended from October 2020
09:33 Oil prices decrease after a recent rise
09:16 MABUX: Bunker market this morning, Sept 17
09:11 Baltic Dry Index as of September 16

2020 September 16

18:05 Busan Port enhances protection of Gamcehon Port from COVID-19
17:52 Launching of trawler Vseslav and keel-laying of similar ship held in Svetly of Kaliningrad Region