• 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.




2021 September 25

10:52 MYCRANE set to launch in four more countries as franchisees are appointed

2021 September 24

18:16 ABS and HHI design optimized LNG carriers
17:59 Admiralteyskie Verfi shipyard launches the Kapitan Martynov freezer trawler
17:55 Italian terminal operator orders two Konecranes Gottwald Mobile Harbor Cranes
16:12 Three Finnish icebreakers return to service after being repaired at Turku Repair Yard
15:03 Maersk invests in electrofuels startup company
14:40 International conference “Inland waterways: strategic potential for growth” focused on INFUTURE project was held on September 20
14:13 Dredge spoil disposal system planned for fairway deepening project
13:57 LAS Vice Admiral Kulakov went to the Atlantic
13:33 Wärtsilä ensures optimal performance and minimal carbon footprint for world’s most environmentally friendly ferry
13:09 Wan Hai Lines holds online ship naming ceremony for new vessels
12:38 Sredne-Nevsky Shipyard launched unmanned research ship Pioner-M
12:10 Record mid-year cargo volumes through the Port of Vancouver in 2021
11:46 SCF Group wins sci-tech award for development in Arctic exploration
11:02 Rolls-Royce and Overmarine continue cooperation with future-oriented mtu technologies
10:07 Tallink Grupp secures another short-term charter deal for vessel Silja Europa
09:59 MPA, SSA and GCNS sign MoU to raise carbon accounting capabilities amongst maritime companies in Singapore
09:41 MABUX: Global Bunker Market may continue firm upward trend on Sept 24
09:24 Crude oil prices continue increasing
09:09 Baltic Dry Index as of September 23

2021 September 23

18:05 Maersk calls Jafza home for its first Warehousing & Distribution facility in the UAE
17:25 GTT and Deltamarin receive AiP from American Bureau of Shipping for their new design applied for LNG fueled tanker
17:05 LR grows fleet optimisation offering with GreenSteam acquisition
16:25 The Port of Rotterdam Authority helps German DeltaPort to be a regional hydrogen hub
16:15 Panama Canal joins to the Call to Action for Shipping Decarbonization
15:39 Dry cargo vessel of RSD59 design, Alexander Ivanov, leaves for sea trials
15:21 ABS grants AIP for next generation liquified CO2 carrier JDP designs
15:05 Synergy Group to take over Maersk Tankers’ technical management business
14:37 DNV and LISCR award AiP to HHI for 40,000 CBM liquefied CO2 carrier design
14:17 Kaliningrad region and FESCO to cooperate in the field of logistics
13:48 Damen can build icebreaking ships for Russia’s Arctic projects within short timeframes
13:25 Sweden’s largest port solar cell system inaugurated at Stockholm Norvik Port
13:15 MABUX: Bunker Weekly Outlook, Week 38, 2021
12:56 Keel-laying of Damen tug series for Atomflot held in Saint-Petersburg
12:51 MSC invests in new efficiency solution to reduce emissions from fleet
11:00 13th Annual Capital Link Shipping & Marine Services Forum took place with great success on September 13, 2021
11:00 Rolls-Royce and Sea Machines sign partnership to cooperate on smart ship and autonomous ship control solutions
10:34 APM Terminals partners with Siemens for energy optimisation and emission reduction at terminals
09:58 Torqeedo and Fassmer Shipyard announce the CIT-E Ferry - a passenger ferry for public transport
09:46 MABUX: Global Bunker Market may demonstrate firm upward evolution on Sept 23
09:29 Crude oil prices continue increasing
09:14 Baltic Dry Index as of September 22

2021 September 22

18:05 ClassNK joins as signatory to Call to Action for Shipping Decarbonization
17:47 Localization level of LK-60 icebreakers estimated at 92% in finance terms
17:20 Torvald Klaveness joins over 150 industry leaders and organizations in call for decisive government action to enable full decarbonization of international shipping by 2050
16:55 SC Zvezda counts on signing contracts for 10 tankers under Vostok Oil project in October 2021
16:31 Transition to unmanned navigation and navigation with reduced crews will be possible in Russia in three years
16:30 LR, HHI and KSOE sign MoU to develop digital twin technology for an LNG carrier
16:10 APM Terminals Pipavav marks 1,000 days of safe operations
15:39 Wärtsilä and SHI agree to collaborate on ammonia fuelled engines for future newbuilds
15:14 NAVTEK proves first zero-emissions tugboat performance
14:43 Additional EUR 90 million to be invested in Saimaa Canal infrastructure development
14:14 Valmet AB orders Agilon automated warehouse solution and overhead cranes from Konecranes
13:57 Northern Sea Route will be covered with satellite communication services – expert
13:16 ABB’s Eero Lehtovaara appointed Chair of EU association Waterborne Technology Platform
13:13 LNG bunker terminal construction begins in Bilbao
12:04 Big Data Exchange, National University of Singapore and Sembcorp Marine to explore development of sustainable ocean Data centres
11:31 Russia’s Inland Water Transport Development Concept aimed at raising IWW cargo traffic by 65%
11:08 Pier T Terminal in the Port of Long Beach begins pilot program for 24-hour cargo pickup
10:40 Vadim Shpityak appointed as General Manager of Moby Dik and Yanino Logistic Park