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  • MABUX: Bunker Market this morning, March 28
  • 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.


2022 January 19

18:20 New SGMF publication provides expansive and highly relevant guidelines on safe bunkering of LNG
18:03 ESL Shipping sells the barge Espa
17:52 High efficiency Wärtsilä power solutions to drive seven new Arctic Shuttle Tankers
17:50 Euroseas announces new charter for its 2,788 TEU, 2004-built vessel
17:33 Freeport of Riga Authority to invest almost EUR 1 million in implementation of port digital technology and IT solution projects this year
17:15 ABS, SDTR and SDARI develop methanol-fueled bulker
16:54 Thistle Wind Partners land 2 GW in ScotWind offshore wind leasing round
16:26 Results of Russian ports in 2021: infographics and analytics
16:05 Port of Blyth orders Konecranes Gottwald Generation 6 Mobile Harbor Crane
15:40 Equinor awarded 26 new production licences on the Norwegian continental shelf
14:56 Oboronlogistics’ Sparta IV to deliver project cargo to India
14:29 Sea Port of Saint-Petersburg increased its throughput in 2021 by 17% YoY
14:08 Growing orders for Alfa Laval FCM LPG fuel supply systems reflect strength in Alfa Laval’s broad LPG offering
13:45 Throughput of Novotrans at Ust-Luga port’s ferry terminal rose by 9.2% in 2021
13:24 ABB adds digital analytics feature to turbochargers, giving performance visibility to shipowners
12:51 Port of Corpus Christi finishes Fiscal Year 2021 with record tonnage
12:50 FESCO delivers equipment for NPP Akkuyu in Turkey
12:27 Helsinki City Board approves the Port of Helsinki Ltd development programme
12:13 METIS adds new functionality to cloud-based platform to enhance decarbonisation and compliance support
11:41 North makes key Fixed Premium P&I appointments to accelerate diversification drive
11:35 Jumbo-SAL-Alliance delivers comprehensive transportation solution for the transportation of offshore platform modules
11:23 Throughput of Murmansk Sea Fish Port in 2021 rose by 20.7% YoY
11:01 Throughput of Rostov-on-Don port in 2021 fell by 15%, year-on-year
10:39 MABUX: Bunker price may continue upward changes on Jan 19
10:16 DNV: “No room for complacency” despite advancement in shipping safety
10:02 Norilsk Nickel to have icebreaker built by Helsinki Shipyard Oy
09:29 Baltic Dry Index as of January 18
09:13 Crude oil prices continue rising amid high demand

2022 January 18

18:45 X-Press Feeders launches Germany Sweden X-Press
18:04 Crown Estate Scotland announces the outcome of the first Scottish offshore wind leasing round in over a decade
17:52 Throughput of Russian seaports in 2021 climbed by 1.7% (detalization)
17:34 Fugro secures cable route survey contract for Denmark’s Energy Islands development supporting the transition to renewable energy
17:04 MPC Capital secures new building slots for 5,500 TEU container ships
16:54 Incat Tasmania awarded a contract to build a 76 metre high speed catamaran for South Korea
16:40 Throughput of Taganrog port in 2021 fell by 1% Y-o-Y
16:24 NYK concludes long-term charter agreement for LNG carrier with EDF LNG Shipping
16:04 Ulstein and Sinoocean sign a framework agreement on spare parts and aftermarket services
15:44 DP World launches a single window digital solution for border authorities
15:24 KONGSBERG delivers innovative propulsion technology to VARD for vessel newbuilds
15:04 Knutsen and NYK establish new company for liquified CO2 Transportation and storage
14:35 NYK orders four LNG-fueled Capesize bulk carriers
14:14 GTT receives two orders for the tank design of new LNG carriers
13:37 Throughput of port Kavkaz in 2021 fell by 19% Y-o-Y
13:14 Unifeeder starts using carbon neutral towage services to boost decarbonization
12:50 Throughput of Kaliningrad port in 2021 rose by 2% Y-o-Y
12:25 Throughput of port Vyborg in 2021 rose by 60% Y-o-Y
12:01 Chinese refinery throughput falls in December
11:36 Port of Boston welcomes its biggest container ship ever
11:19 Fluxys launches 4 additional proposals for hydrogen and CO2 infrastructure in Belgium
10:28 Throughput of port Primorsk in 2021 rose by 7% Y-o-Y
10:03 The Nippon Foundation and Shin Nihonkai Ferry complete a demonstration test of the world’s first fully autonomous ship navigation systems on a large car ferry
10:02 MABUX: Bunker price may continue upward trend on Jan 18
09:49 Container throughput of Hong Kong port (China) in 2021 fell by 1.1%
09:31 Baltic Dry Index as of January 17
09:13 Brent futures exceeded $87 a barrel for the first time since October 2014

2022 January 17

19:02 Thyssenkrupp plans to spin off electrolyser business
18:16 Konecranes delivers three more Rail-Mounted Gantry cranes to Port of Virginia
18:00 Gazprom experts join editorial advisory board of PortNews’ magazine Hydrotechnika
17:46 ICTSI Subic welcomes Wan Hai’s consolidated service
17:33 Average spot market price for Russian M100 product rose to RUB 26,989 pmt