• 2020 February 18 10:21

    MABUX: Bunker market this morning, Feb 18

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

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs) did not have firm trend and changed irregular on February 17:

    380 HSFO - USD/MT 364.17 (+2.18)
    VLSFO - USD/MT 539.00 (-2.00)
    MGO - USD/MT 599.51 (+2.22)


    Meantime, world oil indexes were little changed on Feb.17 as concerns of falling fuel demand caused by the economic fallout from the coronavirus outbreak in China were offset by expectations that output cuts from major producers will tighten crude supply.

    Brent for April settlement increased by $0.35 to $57.67 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March rose by $0.26 to $52.31 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $5.36 to WTI. Gasoil for March delivery lost $4.25.

    Today morning global oil indexes have turned into slight downward trend.

    The production cuts continued by OPEC may not be enough to stabilise global markets and the oil cartel may have to look cutting crude output by another 0.85 million barrels to balance the market hit hard by the Coronavirus outbreak. In the worst case scenario if China’s demand falls by 2.0-2.6 mbpd in February-March 2020, OPEC may need to further cut production by 0.85 mbpd to prevent the price of global crude oil from falling. China is the largest importer of oil and among its top consumers after the US. The spread of coronavirus there has also impacted oil consumption and resulted a further slide in already oversupplied oil market.

    Meantime, Chinese refineries have cut output by about 1.5 million barrels per day (bpd) over just two weeks, causing crude stocks to pile up. That has left numerous Very Large Crude Carriers (VLCCs), capable of holding more than 2 million barrels of crude each, unable to unload at China’s top crude import terminal of Qingdao. Other cargoes are being diverted to South Korea, Malaysia, Singapore and other locales in China, while storage tanks in Shandong province – where Qingdao is located – are filling swiftly. Oil storage tanks in China’s eastern Shandong province are nearing peaks seen last June as independent refiners slash processing rates. China’s overall crude storage is at 760 million barrels, versus a peak of 780 million barrels in early June last year.

    The International Energy Agency (IEA) slashed its demand forecast for the first quarter of 2020, predicting that global oil consumption will contract for the first time in over a decade. IEA dramatically revised its oil demand forecast, predicting consumption will actually contract by 435,000 bpd, the first outright decline year-on-year since the global financial crisis more than a decade ago. Previously, the agency expected consumption to increase by 800,000 bpd from a year earlier. For the full-year in 2020, the IEA cut demand growth by 365,000 bpd to just 825,000 bpd. That would be the lowest annual increase since 2011, and slightly below the growth figures for 2019, which itself was a down year.

     Iran said that when it comes to the rising tensions in the Gulf, the United States and Saudi Arabia are to blame. Tensions in the Gulf took an anxious turn last month when the U.S. conducted a deadly strike on Iran’s top military leader. The Jan. 2 strike that killed Gen. Qasem Soleimani, a key military figure of Iranian and Middle East politics, followed a string of attacks on locations that hosted U.S. and coalition forces, including the U.S. Embassy in Baghdad. The tension in the Persian Gulf is still one of the main upward drivers for oil and fuel indexes.

    A cargo of 950,000 barrels of crude that had been stranded at sea for about a year has finally docked at the port of Jose in Venezuela. The cargo was worth around $50 million at today’s prices. The cargo, on the Gerd Knutsen tanker, was loaded in January 2019 but never reached its destination on the U.S. Gulf Coast because of the escalation of U.S. sanctions against Venezuela and the takeover of Citgo by Venezuelan opposition leader Juan Guaido with the support of Washington.

    Warmer winter weather this year has reduced U.S. natural gas demand for heating, and as production growth continues to exceed demand growth, U.S. natural gas prices slumped this month to their lowest February levels in two decades. Natural gas prices dipped to below US$2 per MMBtu this January for the first time in almost four years. This winter season, the glut is further aggravated by higher gas production in the Permian, higher than normal inventories, and warmer weather so far this winter. For full year 2020, EIA forecasts that Henry Hub natural gas spot prices will average $2.21/MMBtu, and then rise to an annual average of $2.53/MMBtu next year.  

    Libyan UN-recognized Government of National Accord said, country is facing financial disaster if the Libyan National Army does not lift the oil port blockade. The blockade began in mid-January when a group of paramilitary formations affiliated with General Khalifa Haftar’s Libyan National Army occupied the country’s oil export terminals along with pipelines and fields. Since then, Libya’s oil production has slumped from over 1.2 million bpd to less than 200,000 bpd. Despite rounds of talks, the warring sides cannot seem to find common ground for a ceasefire that would last long enough for oil production to start recovering.

    We expect bunker prices may change insignificant and irregular today in a range of plus-minus 1-3 USD.




2020 March 31

18:06 APM Terminals Nigeria donates $US 200,000 to UN Nigeria Basket Fund
17:51 New publication offers updated maritime security guidance for mariners operating off West Africa and Gulf of Guinea
17:36 Manila ports fear shut down due to continued cargo congestion
17:20 Floating workshop of RF Navy's Baltic Fleet completed tasks in Mediterranean Sea
17:06 Yang Ming reveals 2019 financial report
16:55 State Duma of Russia approved in first reading expansion of resource base for LNG production projects
16:23 Rolls-Royce supplies innovative propulsion system for new multi-purpose vessels in the North and Baltic Seas
16:18 Nauticor and Novatek cooperate in the development of small-scale LNG supply infrastructure in the Baltic Sea
15:28 Bunker prices continue going down at the Far East ports of Russia (graph)
15:04 ClassNK establishes "Rules for the Survey and Construction of Governmental and Naval Ships"
14:42 NOVATEK declares LNG transshipment in Norway to be a temporary measure caused by Covid-19 pandemic
14:23 Wärtsilä Translink becomes first ever solution fully compliant with latest IEC and DNV GL Cyber Security rules
13:36 Krasnoye Sormovo to build three more ships of RSD59 design
13:09 Hapag-Lloyd revises North Europe – CAF May 1, 2020
12:51 Navigation season opens at Coal Sea Port of Shakhtersk
12:27 Krasnoye Sormovo shipyard completed sea and mooring trials of Pola Yaroslava, dry cargo carrier of Project RSD59
12:09 Verifavia partners with OSM Maritime Group to provide IHM services
11:44 Operations under quarantine arranged by Troitsa Bay Seaport (MPBT)
11:30 Vostochny Port arranged operations under quarantine
11:08 ABS supports U.S. COVID-19 response
10:45 Cruise shipping to be suspended in the port of Kiel until end of April
10:08 COSCO SHIPPING Holdings announces 2019 results
09:46 MABUX: Bunker market this morning, Mar 31
09:33 Baltic Dry Index is down to 548 points
09:16 Brent Crude futures price is up 2.12% to $26.99, Light Sweet Crude – up 5.67% to $21.25
09:08 Sergey Shishkarev headed the Board of Directors of PJSC TransContainer
08:44 Hapag-Lloyd appoints new executive in Asia
08:44 Aker Solutions secures brownfield services contract in Brunei

2020 March 30

18:30 Ecochlor announces collaboration with Horizon Air Freight to expand shipping services
18:15 Inmarsat takes founding role in first Decarbonising Shipping programme for Asian start-ups
18:05 Start of cruise season in Kiel to be postponed until end of April
17:57 Globaltrans’ profit for 2019 climbed 16% YoY to RUB 22.7 billion
17:03 CMA CGM announces PSS from Romania to the Mediterranean
16:35 OOCL announces Transpacific product update
16:20 About 40 small- and mid-size ships to be built for Russia’s Far East by 2025
16:03 ClassNK releases Guidelines for Non-destructive Inspection by Phased Array Ultrasonic Testing
15:45 Gasum to supply Preem with renewable maritime fuel
15:24 Two ferries operate between seaports of Kaliningrad and Ust-Luga
15:03 NuStar extends Svitzer contract in Point Tupper, Canada, by five years
14:58 5G innovation put to a practical use in the Port of Zeebrugge
14:46 Global Ports terminals add new transit intermodal service from Europe to Asia via Russia
14:28 BPO and BTJ prepared overview of measures introduced in ports and shipping lines within Baltic Sea region
14:02 Port Houston posts cargo volume results for Feb 2020
13:51 Average wholesale prices for М-100 HFO fell to RUB 8,177 in RF spot market
13:20 Wärtsilä signs agreement with Kuribayashi Steamship in Japan for deployment of innovative gate rudder technology
13:10 Maersk’s first intercontinental train from Europe to Asia dispatched from St. Petersburg
13:03 Tianjin Port Development announces 2019 unaudited annual results
12:29 United Shipbuilding Corporation establishes center for prevention of Covid-19 spread
12:02 Ports of Bremen fully functioning
11:37 Abu Dhabi, UAE to host ADIPEC 2020 on November 9-12
11:12 MABUX Digest: Top events on global bunker market. Week 13
11:02 First-stage land usage permit issued to APM Terminals Poti
10:50 KN moves its LNG Terminal from its normal location due to cleaning work
10:28 Port of Riga reports no significant changes in cargo handling
10:21 Panama Canal backs efforts to expedite return home of the passengers and crew on Holland America’s Zaandam
10:04 NCSP Group published its consolidated financial results for 12 months 2019
09:41 MABUX: Bunker market this morning, Mar 30
09:26 RF Government limits crossing of state border checkpoints
09:09 Baltic Dry Index is down to 556 points

2020 March 29

16:29 Coast Guard and a salvage towing company rescued three people near Key Largo