• 2019 December 17 10:41

    MABUX: Bunker market this morning, Dec.17

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

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) showed slight upward trend on Dec.16:

    380 HSFO - USD/MT - 361.06(+1.80)

    180 HSFO - USD/MT – 402.50(+2.12)

    MGO - USD/MT – 679.27(+7.12)

    Meantime, world oil indexes rose slightly on Dec.16 on hopes energy demand will benefit from the trade deal between the United States and China announced last week.

    Brent for February settlement increased by $0.12 to $65.34 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for January rose by $0.14 to $60.21 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $5.13 to WTI. Gasoil for January delivery added $11.50.

    Today morning oil indexes do not have any firm trend so far.

    The United States and China announced on Dec.13 a “phase one” agreement that will reduce some U.S. tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of U.S. farm products and other goods. The agreement averted additional tariffs on Chinese goods totaling $160 billion that the United States was set to impose over the weekend. It is expected the deal would nearly double U.S. exports to China over the next two years and was “totally done” despite the need for translation and revisions to its text. Progress on trade could jump start oil demand and ease fears of a glut which have weighed on prices.

    Data from China on Dec.16 showing industrial output and retail sales growth accelerating more than expected in November offered some support for oil prices. But growth in China is expected to slow further next year, with the government likely to set its growth target at about 6% in 2020 compared with 6%-6.5% this year.

    The International Energy Agency (IEA) predicts deeper production cuts by the OPEC and other major producers including Russia could be not enough to prevent a global supply glut. Even if the countries adhere to the deal struck in Vienna and supply growth from other nations drops, there could still be a surplus of 700,000 barrels per day in the first quarter of next year. IEA kept its global oil demand growth forecasts unchanged for 2019 and 2020, at 1 million and 1.2 million barrels per day respectively. Meantime, US oil production has more than doubled over the past decade, driven by the boom in shale production. As per IEA, the United States was a net oil exporter for the first time in decades in September, and that could become commonplace starting late next year or in early 2021.

    China and India are still among the world’s top oil consumers, together accounting for almost a fifth of global oil consumption. Both countries have been consistently trumping the United States in importance when it comes to oil price trends in recent years as demand for oil has been growing a lot faster in both China and India. In China, oil demand has been growing at an average annual rate of 5.5 percent. In India, it has been growing by some 5.1 percent since 2008. Meanwhile, U.S. oil demand has only been climbing by 0.5 percent over the last decade. Besides, both countries are overwhelmingly reliant on imported oil. In China, the percentage of imported oil in its total consumption is almost 70 percent. In India, this percentage is even higher, at more than 80 percent.  So, if in supply, one has to watch the U.S., OPEC, and Russia, in demand, however, these are China and India. Anything that happens in those two economies immediately affects oil and fuel prices.

    The European Union agreed to cut its total emissions to net-zero by 2050 after ten hours of debates as Eastern European states demanded financial help to hit the target. One EU member state was left out of the agreement: Poland. Poland has opposed the ambitious emissions plan, saying it will cost too much to implement. As a result, the EU agreed to let it off the hook for now on the promise the country will revisit the issue next June. The union also allowed the Czech Republic to include nuclear energy in its energy mix. The agreement comes a day after the EU approved the net-zero emissions plan, which will cost it $111.7-billion (100 billion euro). Dividing these costs among the members proved to be tricky as well as navigating between the demands of individual countries.

    As 2020 rapidly approaches, very low and ultra-low sulphur HFO availability has long been a concern, but it appears that suppliers have responded to the upcoming demand and supply will not be a problem. Possibly of greater concern is how long High Sulphur HFO will remain available or if the price of it will get closer to the low sulphur fuels, greatly affecting the ROI of those owners who opt for scrubbers. Incompatibility of bunker stems may leave shipowners facing serious engine repairs, requiring vessels to be taken out of service and leading to serious loss of earnings for operators. The mixing of non-compatible fuels can lead to the formation of sediment in the tanks which can block filters and purifiers. Add to that the ever-present risk of asphaltenes and cat-fines in certain fuels then the stemming of good quality fuel and good on-board management is essential if damage to the engines and fuel systems is to be avoided.

    We expect IFO prices will stay stable today while MGO prices may add 5-8 USD.


2024 March 28

18:05 Jan De Nul, ENGIE and Equans launch a pilot project centred around the use of Vanadium Redox Flow batteries
17:35 Latvian port equipment manufacturer Bleste introduces new bulk handling ‘bucket’
17:05 Investors upgrade Navios Maritime Partners
16:25 DEME reports 22% increase in the orderbook and a record-high turnover of 3.3 billion euros in 2023
16:14 MABUX: Bunker Outlook, Week 13, 2024
15:41 AD Ports Group announced the opening of Saadiyat Marina & Ferry Terminal and Rabdan Marina
15:11 Sydney invests $11.5 million in two new operational vessels designed by Incat Crowther
14:55 China’s Jinzhao wins Peru $405m port construction contract
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