• 2019 May 21 08:05

    MABUX: Bunker market this morning, May 21

    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) changed insignificant and irregular on May 20:

    380 HSFO - 442.49 (-0.03)
    180 HSFO - USD/MT - 477.51 (+0.14)
    MGO - USD/MT - 705.18 (-2.97)

    Meantime, world oil indexes also changed irregular on May 20 after OPEC indicated it would probably maintain production cuts that have helped support prices this year.

    Brent for July settlement decreased by $0.24 to $71.97 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for June delivery gained $0.29 to $63.21 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 8.76 to WTI. Gasoil for June lost $5.50.

    Today morning oil indexes have started the session with no firm trend.

    Saudi Arabia said on May 19 there was consensus among the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers to drive down crude inventories gently but the Kingdom would remain responsive to the needs of a fragile market. UAE in turn stressed up that producers were capable of filling any market gap and that relaxing supply cuts was not the right decision.

    Bank of America Merrill Lynch warns that Brent crude oil could reach $90 per barrel. Bank claims that the IMO rules regarding the allowable sulphur content, to take effect in 2020, could cause a spike in middle distillate demand, pressuring prices upward. Also pushing up prices could be the weakening dollar should the trade war between China and the United States simmer down. In February, Bank of America estimated that Brent crude would be trading within the $50 to $70 per barrel band through 2024, with prices anchored around $60 per barrel, citing rising US shale supplies and slowing oil demand growth. Along with its $90 per barrel warning, Bank said there was a risk that Brent could dip to $50 per barrel, if the trade war between China and the United States were to hurt consumer sentiment and lead to an economic downturn.

    Saudi Arabia may soak up some of Iran’s previous market share on the Indian market as Saudi Aramco is set to ship additional 2 million barrels per month to Indian Oil Corp between July and December this year on top of the existing term supply deal between the two companies. India, Iran’s second largest oil customer after China, was one of the eight countries that were granted six-month waivers to continue buying oil from Iran after the U.S. re-imposed sanctions on the Iranian oil industry in November. The United States, however, pursued a maximum pressure campaign against Iran last month and put an end to all sanction waivers for all Iranian oil buyers. This put Indian refiners in a position to source the market for alternatives.

    A month before OPEC and allies are set to discuss the future of their production cut deal, the leader of the non-OPEC group, Russia, appears to have finally fallen in line with its share of the cuts, producing below its OPEC+ quota for the month of May. Russia’s oil production between May 1 and 16 averaged 11.156 million bpd,  which means that Moscow is now below its quota under the production cut deal, although the decline in production may have been the result of restricted exports via the Druzhba oil pipeline due to a contamination issue.

    Venezuela’s oil production surprisingly inched up in April, to 768,000 bpd from 740,000 bpd in March. However, a PDVSA report has revealed that since the start of May, production has slumped by as much as 77 percent to 169,800 bpd because of the lack of tankers to carry the crude.

    Global ship insurers are monitoring increased tensions in the Middle East and considering their next course of action. Last week London maritime ship insurers met to consider whether or not to increase shipping insurance rates for tankers in the Arabian Gulf. However, they have failed to reach a consensus so far, as the group doesn't have enough information yet to make a decision over rate possible increases.

    China has issued a new batch of oil product export quotas and they are 5.3 percent higher than they were this time last year as the country’s refineries return to processing record-high amounts of crude oil. The total that Chinese refiners can export comes in at 45.29 million tons since the beginning of the year. That’s up from 43 million tons a year ago. The biggest share is for gasoline, at 9.09 million tons, and next is gasoil with quotas for 9.175 million tons. There is a concern among refiners in other Asian countries that surplus fuel production in China would spill into neighboring countries, undermining the profit margins of local refiners.

    We expect bunker prices may slightly decline today in a range of minus 1-5 USD.




2019 June 20

18:36 Xeneta and Catapult announce agreement
18:06 Inland terminals CTU in Lelystad, HOV Harlingen and Westerman Multimodal Logistics in Hasselt joined the North West Central Corridor
17:36 First European conversion of a dredger to dual-fuel LNG / MGO departs Damen Shiprepair Dunkerque
17:06 ECSA organises workshop on the shipping industry’s interests in the UN negotiations on international ocean governance
17:05 Containerships introduces its second LNG-powered ship CONTAINERSHIPS POLAR and optimizes its Baltic service
16:50 Recovery of vessel traffic in Tushino, Moscow Canal, postponed again causing ship owners’ losses
16:35 Damen Oskarshamnsvarvet Sweden achieves coveted AAA credit rating
16:18 MAN Energy Solutions, Corvus Energy and DNV GL present results of HYCAS study on hybrid power generation
16:04 Knud E. Hansen announces design of 110 m. Adventure Wind Cruise Vessel
15:34 MEYER WERFT announces handover of Spirit of Discovery
15:04 Busan Port Authority and Port of Rotterdam Authority sign contract for the issue of a five hectare site on Maasvlakte Distribution Park West
14:42 Composit participated in Dredging Summit & Expo 2019
14:25 UAE Shipping Association looks to branch out
14:03 MOL and GAIL sign charter contract for one LNG carrier
13:47 DNV GL: Building a marine supply infrastructure as part of a future hydrogen society
13:46 New generation trailing suction hopper dredger ‘Bonny River’ joins the DEME’s fleet
13:28 Helle Hammer awarded WISTA Norway’s LeaderShip Award 2019
12:50 Gazprom Management Committee reviews progress of Nord Stream 2 and TurkStream projects
12:24 Bunker prices are flat at the Far East ports of Russia (graph)
12:01 CMA CGM announces GRR from Asia to West Africa
11:36 ReCAAP ISC and Indian Coast Guard co-hosting 12th Capacity Building Workshop for Maritime Law Enforcement and Regulatory Authorities
11:11 NCSP Group’s consolidated cargo turnover for Jan-Apr 2019 increased by 0.3% to 47.6 million tonnes
10:42 Amendments to be introduced to the Water Traffic Act
10:10 Tallink Grupp connects first two vessels to shore power at Port of Stockholm in a bid to reduce environmental impact
10:09 CMA CGM announces FAK rates from Asia to the Middle East Gulf
09:46 Brent Crude futures price is up 1.81% to $62.95, Light Sweet Crude – up 1.69% to $54.9
09:27 MABUX: Bunker market this morning, June 20
09:17 Baltic Dry Index is up to 1,179 points

2019 June 19

18:14 Port of Southampton signs sister port agreement with PortMiami
18:05 Unique Wärtsilä fresh water production system offers one ton per day fuel savings
17:51 Continued rail investment at the Port of Southampton accelerates air quality improvements
17:28 PGNiG confirms production potential of Poland’s largest gas field
17:03 IMRF announces new Board of Trustees
16:40 Small-size missile ship Orekhovo-Zuyevo, Black Sea Fleet, completes tasks in the Mediterranean Sea
16:02 Hapag-Lloyd announces GRI from Asia to East Coast South America
15:39 Vympel Shipyard launched first Grachonok-class special purpose boat for Federal National Guard Troops Service
15:02 Black Sea Mediterranean Express (BMX Service) Additional Gemlik Call
14:43 Baltic Workboats announces delivery of 100m fully electric ferry
14:21 RS participates in Global Fishery Forum
14:02 MOL and Japanese shipyards design Next Generation Coal carrier 'EeneX'
13:45 Igor Sharkov appointed Director of FESCO Branch Office in Vladivostok
13:26 FESCO opens seasonal transportation to ports of Chukotka
13:02 Van Oord awarded large contract for Mozambique LNG project
12:34 NIBULON Shipbuilding and Repair Yard starts constructing vessels of new project
12:12 ICS meets in Faroe Islands
11:58 Frigate Admiral Gorhskov of RF Navy's Northern Fleet sails through Panama Canal
11:37 Ship inspection platform Idwal urges investors to carry out due diligence on asset condition as standards decline
11:19 WMU signed MOU with Higher Institute of Maritime Studies, Morocco
11:12 Damen signs Phase II contract with International Organization for Migration for nine additional SAR 1906 search and rescue boats
10:55 ABB wins system package with Keppel for dredging contractor Van Oord
10:33 Lavna coal terminal to reach design capacity of 18 million tonnes in 2022
10:00 Bunker market sees mixed price movements at the port of Saint-Petersburg, Russia (graph)
09:38 MABUX: Bunker Market this morning, June 19
09:32 Brent Crude futures price is up 0.03% to $62.16, Light Sweet Crude – up 0.22% to $54.23
09:15 Baltic Dry Index is up to 1,135 points

2019 June 18

18:36 Spotlighting IMO's actions on climate change
18:31 Transborders Energy signs joint study agreement with Kyushu Electric Power for FLNG Solution
18:06 Kim Heng Offshore & Marine Holdings signs MoU with HHC and Thaitan
18:03 Container service boost at Bristol Port
17:53 IMO and UN Environment – working together to keep the Mediterranean clean