• 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.




2021 April 18

16:18 USCG says two crewmembers recovered from capsized lift boat
14:27 Port Canaveral to host commercial vessels for U.S. reflag conversion process
13:48 ABP expands customer offer at Port of Garston
13:11 Suez Canal Authority permitted two personnel of the crew members of the Panamanian vessel to leave for urgent personal circumstances
12:34 IACS announces Incoming Council Chair
11:33 Maritime NZ welcomes new Chief Executive
11:03 RMC and TT-Line ink contract for car and passenger ferry duo
10:25 Local start-up Machine Eye wins £75k in funding from Techstart Ventures and Belfast Harbour
09:41 Logistics services in Dunkerque-Port are expanding with innovative solutions
09:17 USCG recovered one crew member Thursday night from missing lift boat crew

2021 April 17

15:41 BW LPG sells VLGC "BW Empress"
14:23 USCG continues search for missing people from capsized vessel
13:19 Silverstream Technologies and Shell successfully complete trials of the Silverstream® System onboard the LNG carrier Methane Patricia Camila
12:33 Contract for two new car and passenger ferries for TT-Line strengthens RMC's order book significantly
11:21 IACS has published its 2020 Annual Review
10:56 KR and HHI Group sign strategic partnership MOU For GHG issue

2021 April 16

18:00 New multi-regional manual for response to maritime pollution incidents gets jointly published by HELCOM and its partners
17:38 ESPO welcomes Port of Durrës as observer member
17:14 Rosatom estimates demand for tankers and bulkers needed under Arctic project till 2028 at 40 units
16:01 Baltic countries benefit from EMSA’s regional RPAS service for enhanced maritime surveillance
15:03 GPA’s March container trade leaps 48 percent
14:49 Baltic Ports Organization’s Digitalization Managers Group held online meeting
14:25 New rail cargo volumes to and from Stockholm Norvik Port
14:06 Navigation season 2021 opens in Saint-Petersburg
13:12 GTT upgrades its NO96 technology to further reduce the guaranteed Boil Off Rate
12:40 IMO asked to include industry standard on in-water cleaning in its on-going work
12:05 Valenciaport traffic up in March 2021
11:47 Consolidated marine container throughput of Global Ports declined 5.9% in Q1’2021
11:26 Tuapse Sea Commercial Port increased its throughput by 9% in 3M’2021
11:05 The newest ocean cruise ship “Viking Venus” delivered in Ancona
10:34 Rosterminalugol’s coal exports in 3M’21 totaled 6.05 million tonnes
10:12 Crowley begins use of biofuel to power tug Veteran
09:50 Finnish Government proposes amendments to Water Traffic Act
09:27 Oil prices are slightly up
09:09 Baltic Dry Index as of April 15

2021 April 15

18:45 The UAE aims to attain the No. 1 status in Global Food Security Index by 2051
17:58 Public Ferry Terminal in Gdynia to be completed in June
17:35 Tidewater chooses Topsoe’s HydroFlex™ and H2bridge™ technologies for renewable diesel production
16:57 Black Sea Fleet ships go to sea as part of a control check during the winter training period
16:40 Flex LNG and Cheniere enter into time charter party agreements
16:09 Jumbo Shipping and SAL Heavy Lift launch Jumbo-SAL-Alliance
15:44 Wärtsilä caps record-breaking year with scrubber order at Japan Marine United shipyard
15:32 ViaSea Shipping AS based in Norway launches its branch office in Gdynia
15:14 DNV awards world-first Smart notation to CMHI’s offshore rig
15:08 Bunker Weekly Outlook, Week 14, 2021
14:57 The company of the Riga Port produces world-class aluminum high-speed boats
14:36 Servicing Capesize vessels in the port of Riga facilitates access to new cargo and distant markets
14:31 Trafigura to co-sponsor development of MAN Energy Solutions ammonia engine
14:14 NextDecade and Mitsubishi Heavy Industries America sign ESA for carbon capture at Rio Grande LNG project in Texas
13:53 BHP, Oldendorff and GoodFuels successfully complete first trial with biofuel supplied in Singapore
13:35 Sparta III delivered cargo for construction of airfield in Arctic
13:13 UECC floats first of three LNG battery hybrid PCTCs
12:59 Cargo transit potential of Northern Sea Route estimated at several million tonnes per year
12:30 Seaports of Okhotsk Sea and Tatar Strait increased their throughput by 15% in 3M’21
12:11 DEME Offshore and Penta-Ocean establish JV to develop Japan’s offshore wind industry
11:41 Panama Canal Authority postpones planned price hike following calls from shipping industry
11:29 Atomflot estimates technical readiness of icebreaker Sibir at 88%
11:07 Georgia Ports Authority orders 28 Konecranes container cranes as larger ship traffic grows
10:34 BHP, Oldendorff and GoodFuels successfully complete first trial with biofuel supplied in Singapore
10:17 Traffic along the Northern Sea Route may become year-round in the near future – Vladimir Putin