• 2020 October 28 10:01

    MABUX: Bunker Market this morning, Oct 28

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

    Oil Market close yesterday evening
    Oil rises 2% on U.S. Gulf shutdowns, outlook weak.

    Crude settled higher on Tuesday as companies shut down some U.S. Gulf of Mexico oil production ahead of an approaching storm, although surging coronavirus infections and rising Libyan supply limited gains.

    Companies including BP, Chevron, Shell and Equinor ASA evacuated rigs or closed facilities. So far producers have shut 16%, or 294,000 barrels per day (bpd) of oil output due to Zeta, which weakened to a tropical storm on Tuesday from a hurricane on Monday, the U.S. National Hurricane Center (NHC) said.

    Brent crude closed up 75 cents, or 1.9%, at $41.21 per barrel by 1:22 EDT (1722 GMT). U.S. oil gained $1.01 cents, or 2.6%, to $39.57. Both contracts fell more than 3% on Monday.

    The storm-induced bump in prices may be short-lived, however, with demand expected to weaken anew with coronavirus cases rising.
    “We have a lot of weakness...no vaccine, no stimulus, and the very real possibility of a contested election in a couple days, and a stock market that won’t react positively to that,” said Bob Yawger, director of energy futures at Mizuho.

    Libya’s production should rebound to 1 million bpd in coming weeks, complicating efforts by other OPEC members and allies to restrict output.
    The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, are planning to increase production by 2 million bpd from January after record output cuts this year. That would cut overall reductions to 7.7 million bpd - still an enormous amount by the standards of major oil producers, but it may not be enough to offset weak demand.

    Russian President Vladimir Putin, speaking last Thursday, did not rule out extending the cuts for longer.

    “As the virus continues to spread, the odds of additional OPEC + production tends to diminish in helping to provide some balance to the market,” said Jim Ritterbusch, president of Ritterbusch and Associates.

    The latest weekly U.S. oil inventory figures, due later on Tuesday and on Wednesday, are expected to show rising supplies. Analysts polled by Reuters expect crude stocks to rise by about 1.1 million barrels.

    Oil Market today Wednesday morning
    Oil falls 2% as rise in U.S. crude stocks fans oversupply fears.

    Oil prices slid about 2 percent on Wednesday, giving up most of the previous day’s gains, as a surge in U.S. crude stocks and growing coronavirus infections in the United States and Europe fanned fears of a supply glut in oil and weaker fuel demand.

    Brent crude was down 76 cents, or 1.8%, at $40.44 a barrel by 0343 GMT, having climbed nearly 2% the previous day. U.S. oil was down 90 cents, or 2.3%, at $38.67 a barrel, after gaining 2.6% on Tuesday.

    U.S. crude oil and gasoline stocks rose last week, data from industry group the American Petroleum Institute showed, with crude inventories rising by 4.6 million barrels to about 495.2 million barrels, against analysts’ expectations in a Reuters poll for a build of 1.2 million barrels.

    “The higher-than-expected build in U.S. crude stocks prompted fresh selling, while concerns over supply disruption from Hurricane Zeta have receded,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

    Energy firms and ports along the U.S. Gulf Coast prepared on Tuesday for Zeta, the 11th hurricane of the season, as it entered the Gulf of Mexico.
    “Rising COVID-19 cases with the lack of a U.S. coronavirus fiscal relief package also dented investors’ risk appetite,” Kikukawa said. He expected the gloomy sentiment to keep prices under pressure through the Nov. 3 U.S. presidential election.

    The United States, Russia, France and other countries have registered record numbers of infections in recent days, and European governments have introduced new curbs to try to rein in the fast-growing outbreaks.

    President Donald Trump acknowledged on Tuesday that a coronavirus economic relief deal would likely come after the election, with the White House unable to bridge differences with fellow Republicans in the U.S. Senate as well as congressional Democrats.

    “With and without another lockdown, movement across Europe and North America will fall during the coming winter months as most people avoid travel and big gatherings,” said Henning Gloystein, director of global energy & natural resources at Eurasia Group, in a note on Wednesday.

    “This will dent fuel consumption and almost certainly force OPEC and its allies to continue withholding oil supply well into 2021,” he said.

    The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, plans to scale back the size of its production cuts in January from a current 7.7 million barrels per day (bpd) to roughly 5.7 million bpd in January. While still an enormous amount, this may not be enough to offset weak demand.

    Adding to pressure, Libya’s production should rebound to 1 million bpd in coming weeks, complicating efforts by other OPEC members and allies to restrict output.

    Oil Future close 27th October, 2020
    Brent crude:          $ 41.20 (+0.74) /brl         FM delivery Dec (FM=Front Month)
    Light crude (WTI): $ 39.57 (+1.01) /brl         FM delivery Dec
    Gasoil ARA;           $ 329.50 (+9.25) /mton    FM delivery Nov
    NY Harbor Ulsd:     $ 356.41 (+11.05) /mton  FM delivery Nov  

    Oil Futures trading at GMT 06.46; Brent: $ -0.72, WTI: $ -0.87.

    Expect Fuel Oil prices to increase 4 - 9 usd/mton. (Fuel Oil, means 380 HS plus VLSFO together). MGO is expected to increase around 7 usd/mton and NY Harbor Ulsd an increase of 11 usd/mton.  All prices based on Oil Future close last night Tuesday evening.




2020 December 4

20:37 Jan De Nul starts construction of its 5,000 tonnes crane vessel Les Alizés
18:36 RORO carrier continues liner services after fast steel repairs at Niestern Sander
18:20 Sea Port of Saint-Petersburg launches unified platform for data exchange with Russian Railways
18:06 Ørsted completes the construction of the largest in the Netherlands offshore wind farm
17:46 BIMCO: EU ship recycling regime improved but gaps remain
17:26 Hapag-Lloyd announces PSS from Far East to North Europe and Mediterranean
17:04 Zvezda Shipyard lays down shuttle tanker of ARC6 class
16:52 Lloyd's Register to acquire C-MAP Commercial from Navico Group
16:35 WDP builds multimodal mega-distribution centre in North Sea Port
16:05 Volkswagen powers car freighters with used oil from restaurants
15:24 Marvesa and Koole Terminals sign an agreement to build and use a new tank storage terminal in the Port of Rotterdam
15:09 Cargo traffic within Azov-Don Basin of Russia’s IWWs grew by 7.6% in 2020
14:11 CMA CGM announces FAK rates from North Europe to Kenya and Tanzania
13:45 Nefteflot lays down third cruise ship of Project PV20S
13:13 The Finnish Financial Supervisory Authority approves the merger prospectus concerning the combination of Cargotec nd Konecranes
12:24 Kapitan Metsayk icebreaker arrives at Azov seaport
12:01 Austal Australia launches first of two cape class patrol boats for Trinidad and Tobago Coast Guard
11:40 Klaipėdos Nafta joins Lithuanian hydrogen platform
11:19 Bunker prices started decreasing at the Port of Saint-Petersburg, Russia (graph)
11:18 Odfjell SE agrees to acquire Lindsay Goldberg’s stake in Korea terminal
11:09 CMA CGM announces THC for import / export Finland, Sweden, Spain, Italy, Belfast (UK)
10:55 MABUX: Bunker market this morning, Dec.04
10:49 Port of Long Beach prioritizes dual transactions
10:37 NSR cargo traffic grew by 4.2% in 11M’2020
10:00 Online discussion of China’s inland shipping experience to continue on December 9 at joint PortNews/MEB webinar
09:26 Oil prices rise following OPEC+ meeting
09:14 Baltic Dry Index as of December 3

2020 December 3

18:31 ABS, Hyundai Heavy Industries Group and the Marshall Islands Registry JDP creates coating needing just one application
18:11 Lotos shipyard lays down two more dredgers of Project 93.159
18:03 Torqeedo powers Thailands first electric passenger ferry fleet
17:28 Krasnoye Sormovo shipyard delivers dry cargo carrier Alfa Mercury
17:06 Wärtsilä signs 5-year agreement with LMM for the main engines for two VLGCs
17:02 Bunker Weekly Outlook, Dec 03, 2020
16:50 The 1st Hackathon dedicated to innovation in the port sector in Morocco launches from December 18 to January 29
16:37 Timber and forestry products account for 24% of Riga port’s total turnover
16:05 Cargotec’s Board of Directors has decided to initiate a sales process for Navis software business
15:59 Rosatom to establish Marine Operations Headquarters for NSR
15:34 Port of Antwerp tightens regulations regarding byloads inside second-hand vehicles
15:22 Operation of unmanned navigation test basin on Neva river to continue next season
15:04 Maersk Tankers adds four Xihe-owned tankers to its pools
14:24 Equinor and SINTEF enter into a strategic collaboration agreement
14:02 Investment reaps rewards for Pilbara’s ports
13:40 Bunker market sees mixed price movements in the Far East ports of Russia (graph)
13:02 Trafigura becomes a major investor in green hydrogen with H2 Energy
12:34 RF Government drafted decree on providing state support to construction of large-capacity ships
12:01 Busiest month for Port of King’s Lynn in five years
11:55 The study by HTC identifies almost 30 measures that can lead to a reduction in CO2 emissions in the Port of Hamburg
11:29 AS Tallink Grupp published its tatistics for November 2020
11:00 BW LPG enters into agreements to sell two vessels
10:35 Ships of RF Navy's Pacific Fleet completed their visit to Sri Lanka
10:10 Rosmorport takes delivery of self-propelled hopper barge Morskaya
10:02 Soren Toft arrives at MSC as Chief Executive Officer
09:48 MABUX: Bunker market this morning, Dec.03
09:29 Oil prices are slightly down
09:16 Baltic Dry Index as of December 2

2020 December 2

18:37 Rolls-Royce acquires leading supplier of ship control systems Servowatch
18:05 Aker and MAN sign agreement to develop energy-efficient compression solutions for carbon capture and storage applications with heat recovery
17:53 Cargo traffic within Azov-Don Basin of Russia’s IWWs grew by 7% in 11M’20
17:20 Fincantieri finalizes new generation of thrusters
17:15 Hapag-Lloyd announces rates from East Asia (incl. Japan) to North Europe and Mediterranean