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  • MABUX: Bunker Market this morning, Oct 14
  • 2020 October 14 09:24

    MABUX: Bunker Market this morning, Oct 14

    The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

    Oil Market close, Tuesday evening

    Oil rises nearly 2% as robust China trade data offsets returning supply.

    Oil prices rebounded on Tuesday, supported by robust economic data from China that offset returning supply in other regions but gains were capped by forecasts for a slow recovery in global oil demand as coronavirus cases rise.

    Brent crude futures were up 72 cents, or 1.7%, to $42.44 a barrel by 12:09 p.m. ET (1609 GMT). U.S. West Texas Intermediate (WTI) crude futures rose 85 cents, or 2.2%, to $40.28 a barrel. On Monday, both benchmarks fell nearly 3%.

    China, the world’s top crude oil importer, took in 11.8 million barrels per day (bpd) of oil in September, up 5.5% from August and up 17.5% from a year earlier, but still below the record high level of 12.94 mln bpd in June, customs data showed.

    “Oil prices, which suffered quite a blow the previous day, were looking for a bright spot and Tuesday offered just that,” said Rystad Energy’s senior oil markets analyst Paola Rodriguez-Masiu.

    “We find that China’s record haul of crude growth is poised to cease as independent refineries have nearly fully utilized their state-issued import quotas and companies struggle with extremely high crude inventories. Therefore, despite the initial enthusiasm, we find that the uptick in oil prices today is unjustified.”

    The International Energy Agency (IEA) - which advises Western governments on energy policy - said in its World Energy Outlook that in its central scenario a vaccine and therapeutics could mean the global economy rebounds in 2021 and energy demand recovers by 2023.

    But under a “delayed recovery scenario,” it said the energy demand recovery is pushed back to 2025.

    “The era of global oil demand growth will come to an end within the next 10 years, but in the absence in a large shift in government policies, I don’t see a clear sign of a peak,” IEA chief Fatih Birol told Reuters.

    The Organization of the Petroleum Exporting Countries (OPEC) also forecast a slower demand recovery on Tuesday.

    In a monthly report, it said oil demand will rise by 6.54 million bpd next year to 96.84 million bpd, 80,000 bpd less than expected a month ago.

    Social restrictions were being tightened in Britain and the Czech Republic to battle rising cases of COVID-19, and French Prime Minister Jean Castex said he could not rule out local lockdowns.

    On the supply side, workers have been returning to U.S. Gulf of Mexico platforms after Hurricane Delta and Norwegian workers to offshore rigs after ending a strike.

    The energy minister from the United Arab Emirates (UAE) said on Tuesday that OPEC+ oil producers will stick to their plans to taper oil production cuts from January.

    OPEC member Libya on Sunday also lifted force majeure at its Sharara oilfield.

    Libya’s total output on Monday was expected to hit 355,000 bpd while a full return of the 300,000 bpd Sharara field would nearly double that.

    “For prices to rise further, we think elevated spare production capacity among OPEC+ needs to be reduced. This is why we describe the oil market as artificially, and not structurally, tight at present. The group can react easily to any large production disruption by using its spare production capacity to ramp up production in case prices spike,” UBS analysts said in a note.

    Weekly U.S. oil inventory data is delayed a day due to Monday’s Columbus Day federal holiday.

    Oil Market today, Wednesday morning

    Oil prices slip as rising coronavirus cases stokes demand concerns.

    Oil prices slipped on Wednesday on concerns that fuel demand will continue to falter as rising coronavirus cases across Europe and in the United States, the world’s biggest oil consumer, could impede economic growth.

    The Organization of the Petroleum Exporting Countries (OPEC) said in its monthly report on Tuesday that oil demand in 2021 will rise by 6.54 million barrels per day (bpd) to 96.84 million bpd, 80,000 bpd less than its forecast a month ago, as a result of the economic dislocations caused by the coronavirus pandemic.

    Brent crude futures for December fell by 12 cents, or 0.3%, to $42.33 a barrel by 0355 GMT while U.S. West Texas Intermediate futures were down 11 cents, or 0.3%, to $40.09.

    The heads of two of the world’s biggest oil producers, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman, discussed the current situation in the energy markets during a telephone call, the Kremlin said on Tuesday.

    OPEC and producer allies such as Russia, a group known as OPEC+, will stick to their plans to taper oil production cuts from January, Suhail al-Mazrouei, the energy minister of the United Arab Emirates said on Tuesday.

    “Oil prices are steady in Asia as the dollar rally takes a break and as the Russian and Saudis show a united front in making OPEC+ oil producers live up to their pledged output cut promises,” said Edward Moya, a senior market analyst at OANDA.

    “Crude prices are looking very vulnerable as the coronavirus continues to spread like wildfire across Europe and trending higher in the U.S.,” Moya added.

    On the supply side, crude oil production in the U.S. Gulf of Mexico continued to recover four days after Hurricane Delta made landfall with the amount shut falling to 44% on Tuesday from 69% on Monday.

    U.S. crude oil inventories were seen falling last week, while distillate stockpiles likely declined for a fourth week, a preliminary Reuters poll showed on Tuesday.

    The poll was conducted ahead of reports from American Petroleum Institute and the Energy Information Administration. Both the reports were delayed by a day because of the Columbus day holiday on Monday in the United States.

    Oil Future close 13th October, 2020

    Brent crude:           $ 42.45 (+0.73) /brl                FM delivery Dec (FM=Front Month)

    Light crude (WTI):  $ 40.20 (+0.77) /brl                FM delivery Nov

    Gasoil ARA;            $ 339.25 (+2.25) /mton           FM delivery Nov

    NY Harbor Ulsd:    $ 359.89 (+3.66) /mton           FM delivery Nov

    Oil Futures trading at GMT 04.53; Brent: $-0.08, WTI: $-0.10.

    Fuel Oil prices expected to increase 5 usd/mton

    (Fuel Oil, means 380 HS plus VLSFO together).

    MGO and NY Harbor Ulsd expected increase by 2-4 usd/mton.

    Above indications are based on Oil Future close last night 13th October.

    The Oil Market began the day with a small downward trend, and in general a further drop of Oil Prices is more likely also today, but it never happened yesterday. The price uptick in oil prices yesterday was unjustified.

    More oil productions are coming on stream and no visible demand increase in sight, which is likely to push oil prices further downward.

     


2022 August 12

18:27 OKEE Maritime to enhance environmental performance with StormGeo's CII Solution
18:03 IAA PortNews’ summary of past week news
17:51 The Government of Canada announces funding for new technologies to reduce underwater noise from marine vessels
17:20 Avenir LNG signs MoU for the development and construction of an LNG/BioLNG Terminal in the Port of Oxelösund, Sweden
17:02 NE China ports handle over 3,100 China-Europe freight train trips - The State Council the People's Republic of China
16:31 Russian Railways boosts loading of cargo bound for Azov-Black Sea Basin by 2.5% in 7M’22
16:24 Global container fleet to grow more than demand - Hapag-Lloyd CEO - Reuters
15:30 ZIM invested $5.5 million in provider of asset and fleet visibility solutions
15:03 Equinor’s H2H Saltend selected to proceed as one of the first large-scale hydrogen projects in the UK
14:58 Three new barges delivered cargo for construction of Amur Gas Chemical Complex
14:13 Grimsby River Terminal welcomes the first sustainable car carrier
14:03 CMA CGM service starts to call Yilport Gemlik
13:42 Maersk Drilling awarded two-month extension with TotalEnergies offshore Denmark
13:14 De Vlaamse Waterweg and Port of Antwerp-Bruges maintain the water level in the docks and the Albert Canal with a temporary pump installation
12:00 First Rijeka–Czech Republic direct cargo rail service established
11:55 Kazakhstan Transport Week will be held in Almaty from September 20-22, 2022
11:32 MacGregor has received a significant order to supply all-electric RoRo equipment to four PCTC vessels
11:02 Diana Shipping announces the acquisition of nine Ultramax dry bulk vessels from Sea Trade
10:42 First hydrogen bunkering license issued in the Netherlands
10:28 Throughput of Russian seaports in 7M’2022 declined by 0.2% YoY
10:20 Teekay сompletes the first ship-to-ship operations at Port Sudeste Brazil
10:09 Höegh Autoliners posts Q2 2022 results
09:31 ZeroNorth signs deal with X-Press Feeders to propel carrier’s decarbonisation strategy
09:16 Crude oil futures decrease after growing for two days
08:51 MABUX: Global bunker indices to keep rising on August 12
08:33 Pakistan Navy saves 9 Indian crew members after ship drowns - Geo News

2022 August 11

18:30 Valenciaport strengthens relations with the Chinese region of Fujian
18:05 Yang Ming publishes financial report for H1 2022
17:57 Yara Latvija opens a mineral fertilizer packaging and storage warehouse at “Riga Nordic Terminal”
17:26 KSOE lands LNG carrier order worth KRW2tn from Qatar - BusinessKorea
17:06 UECC signs up for Svitzer’s EcoTow solution in Scandinavia
16:51 Aleksandr Lukashenko gave instructions to make the maximum use of the Russian ports to ship Belarus’ goods
16:25 Saipem awarded three new EPC contracts in Angola for a total amount of around 900 million USD
16:05 Australian Maritime Safety Authority issues the Port State Control Annual Report for 2021
15:39 Maersk Supply Service wins another integrated solutions project in Brazil
15:14 Cleaning and dredging of water area near Moskva-river berths completed
14:48 Port of Tallinn closes operations in Paljassaare harbour
14:23 Germany's RWE widens global search for LNG supplies - Reuters
13:33 Nuclear-powered container ship Sevmorput came to Murmansk from Petropavlovsk-Kamchatsky
13:15 Dozens missing after migrant boat sinks off Karpathos, Greece - The Associated Press
13:02 MABUX: Bunker Weekly Outlook, Week 32, 2022
12:41 MacGregor receives an order to supply all-electric RoRo equipment to four PCTC vessels
12:12 Milaha reports a 46% increase in net profit for H1 2022
11:52 MAN Energy Solutions signs MoU with Stena and Proman
11:17 Aker Solutions to provide subsea production system for the Trell & Trine development
11:04 Hapag-Lloyd revenues up to EUR 17 billion in first half year of 2022
10:40 Equinor’s new floating production vessel Johan Castberg catches fire
10:33 EU ban on Russian coal imports comes into force - Deutsche Welle
10:01 Gubkin University supports 6th LNG Bunkering and Alternatives conference as its Industry Partner
09:41 QatarEnergy awards McDermott FEED contract for the North Field South Offshore Pipelines Project
09:40 Rosatom exercised option to purchase share in Delo Group and increased its stake to 49%
09:18 Crude oil futures decrease on surge of US reserves
08:59 MABUX: Uptrend to continue in Global bunker market on August 11

2022 August 10

18:37 Awilco LNG ASA enters a new time charter contract for the WilForce with an oil major
18:07 BHP, Pan Pacific Copper and Norsepower partner to harness the power of wind-assisted propulsion
17:55 Water area of Ust-Luga port’s southern district put into operation
17:46 Drydocks World-Dubai signs strategic partnership with Silverstream Technologies
17:26 US antitrust Commission seeks feedback on performance of exemption for liner shipping consortia
17:19 Throughput of port Shanghai (China) in 7M’2022 fell by 7% YoY to 291 million tonnes
16:52 STC INSISO secures six-figure contract extension with Peel Ports