• 2019 March 28 10:47

    MABUX: Bunker Market this morning, March 28

    The Bunker Review was contributed by Marine Bunker Exchange

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) rose slightly on Mar.27:

    380 HSFO - USD/MT - 412.29(+2.79)

    180 HSFO - USD/MT - 459.64(+2.71)

    MGO - USD/MT - 634.14(+1.57)

    Meantime, world oil indexes fell slightly on Mar.27, after the Energy Information Administration reported a moderate build in U.S. crude oil inventories for the week to March 22.

    Brent for May settlement declined by $0.14 to $67.83 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May delivery sank by $0.53 to $59.41 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 8.42 to WTI. Gasoil for April delivery lost $0.50.

    Today morning oil indexes extended losses into a second straight session.

    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.8 million barrels from the previous week. At 442.3 million barrels, U.S. crude oil inventories are about 2% below the five year average for this time of year. Distillate fuel production averaged 4.9 million bpd last week, virtually unchanged on the week. Distillate fuel inventories fell by 2.1 million barrels. This segment of the downstream industry could see more action in the months to come as refiners prepare to capture higher profit margins from increased sales of low-sulfur bunkering ahead of the IMO’s new emission rules that enter into effect next January.

    The International Energy Agency (IEA) reported Global energy-related CO2 emissions reached a historic high in 2018 – the highest rate of growth since 2013 and 70% higher than the average increase since 2010. The IEA notes that energy demand worldwide grew by 2.3% last year, its fastest pace this decade. The increase was attributed to a robust global economy and stronger heating and cooling needs in some regions. Natural gas has emerged as the fuel of choice, posting the biggest gains and accounting for 45% of the rise in energy consumption. Gas demand growth was particularly strong in the United States and China. Demand for all fuels also increased, with fossil fuels meeting nearly 70% of the growth for the second year running.

    U.S. Energy Information Agency (EIA) forecasts that the implementation of the new IMO 2020 fuel specification will widen discounts between light-sweet crude oil and heavy-sour crude oil, while also widening the price spreads between high- and low-sulfur petroleum products. In the January forecast, Brent crude oil spot prices increase from an average of $61 per barrel (b) in 2019 to $65/b in 2020 with about $2.50/b of this increase being attributable to higher demand for light-sweet crude oils priced off of Brent. The expected increased premium on low sulfur fuels will likely mean higher diesel fuel refining margins, which EIA forecasts will increase from an average of 43 cents per gallon (gal) in 2018 to 48 cents/gal in 2019 and 65 cents/gal in 2020.

    Hedge funds are buying oil once again after a pause earlier in March, signaling returning optimism about U.S. - China relations and subsiding concern about the global economy. The ratio between long and short positions on oil among funds is now five to one, which is a sign of returning confidence in the capability of the oil market to keep prices rising. Yet it is far from the 12-to-one ratio that was recorded last September, just before prices declined sharply.

    Despite that, the concern about world economy is still there. Slowdown is expected for key economies such as China and India, as well as in Southeast Asia. In early March, Fitch cut its projection for the Indian economy to 6.8 percent from 7 percent, and that itself was a cut from a December revision from 7.8 percent. Meanwhile, China cut its own economic growth forecast for this year to 6-6.5 percent from about 6.5 percent. Any news about economic growth projection cuts in either of these countries immediately pressures oil and fuel prices and currently explains hedge funds’ relative caution in increasing their long bets.

    Venezuela's main oil export port of Jose and its four crude upgraders were unable to resume operations following a massive power blackout on Mar.25, the second in a month. This week’s blackout will no doubt impact oil production and exports further, with OPEC likely using the production loss as a win in its drive to lower global oil inventories to see higher prices.

    Tensions between the United States and Russia over Venezuela are also increasing, escalating over the weekend when two Russian planes with 100 troops landed in Venezuela. The United States was quick to condemn what it felt was an encroachment in South America, while Russia downplayed the incident, hinting that it had routine military contracts to fulfill at the time.

    The unrest in Algeria in the form of mass protests seeking to force President Abdelaziz Bouteflika out of office has investors worried; but so far, there are no signs that oil and gas output has been affected. Protests began in mid-February with Bouteflika’s attempt to run for a fifth term as president. Market is now closely watching what the military’s next move will be, with news emerging yesterday that the military chief of staff has publicly taken sides with the protesters. Other political elite have also appeared to abandon Bouteflika, including some ruling party members and key business leaders. In the meantime, Algeria’s state-run oil company, Sonatrach, has decreased price for its April-loading cargoes of Saharan blend by 30 cents.

    We expect bunker prices may demonstrate sight downward trend today in a range of minus 1-2 USD/MT.


2024 March 28

14:13 APM Terminals Moín handled six million TEU
13:48 ClassNK grants Innovation Endorsements for Products & Solutions to two innovative initiatives by MOL
13:37 Konecranes launches its flagship Konecranes X-series industrial crane
12:53 United European Car Carriers UECC spearheads collaboration with industry leaders to advance CNSL as a sustainable marine fuel
12:26 Ocean Network Express announces Transpacific service
11:48 Yang Ming announces 2025 Trans-Pacific service network
11:24 Fincantieri signs contract for the supply of two PPAs to Indonesia
10:42 Maersk transported more than 660,000 TEU using clean fuel in 2023
10:23 Documentation delays push industry costs to $3bn
09:48 PONANT and FARWIND Energy partner to develop green hydrogen refueling solutions

2024 March 27

18:22 Bureau Veritas awards world’s first prototype certification for SolarDuck’s floating offshore solar solution
17:58 The recently converted Allseas's shallow water pipelay barge starts preparations for its first commercial project
17:38 The Port of Rotterdam calls on the European Commission and Parliament to focus on actively promoting green energy
15:23 SEFE to become sole shareholder of WIGA
14:53 Ocean Installer secures yet another SLM contract with Equinor
14:23 Cadeler signs offshore wind turbine installation contract for the vessel Wind Scylla
13:42 Carnival Cruise Line orders 5th Excel-class cruise ship
13:11 Maersk and MSC overcharging cargo owners for EU ETS, says T&E
12:52 The Port Authority of Valencia launches the ZAL project in the Port of Valencia
12:11 Clarkson Port Services and Peak Group collaborate to deliver Port Agency services across the North Sea
11:42 Wan Hai Lines holds ship naming ceremony for new vessels
11:24 Consolidated shipping lines EBIT loss was $1.44 billion in Q4 2023: Sea-Intelligence
10:49 Seaspan Shipyards receives long-term contracts for the pre-construction work of the the Canadian Coast Guard's first six multi-mission vessels
10:14 Woodside completes sale of 10% scarborough interest

2024 March 26

18:02 COSCO Shipping Lines introduces new Americas service
17:30 Davie awarded first contract for design of icebreaker fleet under Canada’s National Shipbuilding Strategy
17:04 Sanctions complicate Arctic LNG ship sales, Hanwha Ocean says - Bloomberg
16:57 Terntank places an order for 1+1 additional wind/ methanol-ready hybrid tanker
16:28 BW LNG completes acquisition of two TFDE vessels from Stena Bulk
15:50 Hanwha Ocean develops VR-based special vehicle simulator
15:20 TotalEnergies and SINOPEC join forces to produce sustainable jet fuel at a SINOPEC's refinery
14:52 Wärtsilä Lifecycle Agreement to guarantee operational reliability of new wind farm installation vessel
14:23 Hudong-Zhonghua launches two LNG carriers
13:51 Cargo ship hits Baltimore’s Key Bridge
13:12 Final sanctioned tanker with Russian Sokol oil to reach China port - Reuters
12:42 Adani Ports acquires 95% of Odisha's Gopalpur Port from SP Group for $162 million
12:21 IHI and Yara Clean Ammonia agree to jointly assess clean ammonia business collaboration
11:41 Yara Clean Ammonia and Azane granted safety permit to build world's first low emission ammonia bunkering terminal
11:16 Wartsila and Royal Caribbean Group celebrate 15 years of collaboration on digital transformation
10:46 A global carbon tax on shipping is coming, says ABS Chairman and CEO
10:21 Eni, Fincantieri and RINA establish partnership for maritime transport decarbonization

2024 March 25

18:07 The Maritime and Port Authority of Singapore continues to investigate reports of oil spills off the port of Tuas
17:31 “K” Line, NIPPON HAKUYO and OPT Gate sign an agreement for a new fire detection system for car carriers
17:07 Greek merchant fleet recorded slight decline in January 2024
16:47 Hanwha Ocean Plans to develop green technology and naval ships
16:25 U-Ming Singapore and ITOCHU sign milestone MoU for the joint development of ammonia dual-fuel and de-carbonized vessels
15:34 Svitzer targets methanol-fuelled MAN 175DF-M engine for tug application
15:04 Wallenius Wilhelmsen signs contracts for four 9,300 CEU vessels with China Merchants Jinling Shipyard
14:40 Taiwan International Port to upgrade terminal facility at Kaohsiung
13:59 Сruise ship Carnival Freedom catches fire near Bahamas
12:59 Hanwha Ocean wins 2.4 tln-won order for 8 LNG ships
11:16 Inland Ports meet in Paris to talk about the innovation potential of inland ports
10:50 IMO agrees possible outline for maritime “net-zero framework”
10:24 Hapag-Lloyd to continue to avoid the Red Sea route
09:58 QatarEnergy enters time charter agreements with Nakilat for the operation of 25 LNG vessels

2024 March 24

16:18 Inchgreen Marine Park upgraded as part of £11m investment
15:14 A ribbon-cutting ceremony for Solent Rail Terminal Rail was held at the Port of Southampton
14:08 ESNA and Strategic Marine join forces to offer Surface Effect Ship (“SES”) Crew Transfer Vessels (“CTV”) to the market
13:07 First LNG powered vessel calls at HIP
12:49 Inter-array cable installation completed at Neart na Gaoithe offshore wind farm
11:32 Equinor ASA posts net income at USD 11.9 billion in 2023
09:25 Edda Wind announces the sale of Edda Passat

2024 March 23

17:19 Maersk opens new warehouse facility in Tijuana, Mexico for cross-border capabilities
14:01 Bollinger Shipyard marks keel laying ceremony for 10th Navajo-class T-ATS
13:55 MEYER WERFT and Disney Cruise Line celebrate keel laying
12:19 HSL completes repair work on DEME's dredger TSHD Bonny River
10:53 Turkish shipbuilder delivers RAscal 1500 ASD tug to French port

2024 March 22

18:07 Lloyd's Register releases a report on the operational and safety issues of the use of ammonia as a marine fuel
17:17 RINA supports Mongolia's to develop a roadmap for long-term strategy according to Paris Agreement
16:47 MOL Coastal Shipping to start concept study on large coastal ammonia carrier