• 2019 September 11 09:20

    MABUX: Bunker market this morning, Sep 11

    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) continued firm upward trend on Sep.10:

    380 HSFO - USD/MT – 393.54 (+8.22)
    180 HSFO - USD/MT – 435.01 (+7.11)
    MGO - USD/MT – 658.80 (+6.00)


    Meantime, world oil indexes changed insignificant and irregular on Sep.10 amid optimism that OPEC and other producing countries may agree to extend output cuts to support prices and after U.S. President Donald Trump fired national security adviser John Bolton, raising speculation of a return of Iranian crude exports to the market.

    Brent for November settlement increased by $0.25 to $60.95 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for October delivery rose by $0.04 to $56.30 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $4.65 to WTI. Gasoil for September lost $12.25.

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

    Trump fired Bolton amid disagreements over how to handle foreign policy challenges such as North Korea, Iran, Afghanistan and Russia. The market took that as a sign that the Trump Administration may open the talks with Iran and probably return Iranian oil. Iran’s crude oil exports were slashed by more than 80% due to re-imposed sanctions by the United States after Trump exited last year Iran’s 2015 nuclear deal with world powers. In May, Washington ended sanction waivers given to importers of Iranian oil, aiming to cut Tehran’s exports to zero.

    Saudi Arabia's new energy minister, Prince Abdulaziz bin Salman, said the kingdom's policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained. As per him, the OPEC+ alliance, made up of OPEC and non-OPEC producers including Russia, would be in place for the long term. The OPEC+ joint ministerial monitoring committee (JMMC), which reports on compliance with the cuts, is due to meet on Sep.12 in Abu Dhabi. There have been concerns about producers' adherence to the agreement as OPEC members Iraq and Nigeria, among others, exceeded their quota in August and Russia also did not fully comply.

    JMCC may also discuss this week the implementation of new metrics to monitor the state of the global oil market and its balance. OPEC is now considering using several metrics to assess where global oil (over)supply stands, including taking the five-year average of oil stocks in 2010-2014 instead of the most recent five-year average 2014-2018, which it currently reports in its monthly oil market reports and which the International Energy Agency (IEA) also takes as a benchmark to measure oil inventories. There are concerns that the 2010-2014 average metric will not give a correct comprehensive assessment of the oil market.

    Russia is considering the notion that oil prices may be as low as $25 per barrel in 2020. Russia’s Central Bank has forecast in its macroeconomic forecast that oil could possibly hit that low due to falling demand for oil and oil products worldwide, as well as from disappointed global economic growth. If that risk scenario actually materializes, Russia’s inflation could increase to 7% or 8% next year, on the back of falling gross domestic product to 1.5%– 2%. Meantime, Russia is more impervious to low oil prices compared to its competitors because its currency weakens when oil prices fall. This provides some type of a protection—at least to some extent—for its lower oil revenues. Russia’s budget for 2019 was based on $40 oil. Meanwhile, Saudi Arabia needs $80 or even $85 per barrel.

    The main headwind for oil/fuel prices, however, remains. The U.S. and China are far from a trade deal despite positive signals from both sides about their willingness to settle their differences. Until this trade war finds a resolution, prices will have a pretty limited space for growth, whatever OPEC+ decides to do.

    Argus and the Asia Pacific Exchange (APEX) signed an agreement licensing the use of the Argus Bunker Index (ABI) Singapore LSFO 0.50%S as the settlement price for a proposed new derivatives contract. The contract can be used by oil traders, bunker fuel suppliers and shipowners to manage their price risks related to the new low-sulphur fuel oil (LSFO) required to comply with the 0.50% sulphur cap. The LSFO 0.5%S index represents the price of bunker fuel delivered within 4-12 days from the trade date, for volumes between 500 tonnes and 3,000 tonnes, with viscosity of less than 380 centistoke (cSt) and sulphur below 0.50%.

    The American Petroleum Institute (API) has estimated a large crude oil inventory draw of 7.227 million barrels for the week ending September 5, compared to analyst expectations of a 2.6-million barrel draw. The inventory build this week takes away from last week’s build in crude oil inventories of 401,000 barrels, according to API. The EIA estimated that week that there was an inventory draw instead, of 4.8 million barrels. After today’s inventory move, the net draw for the year is 25.90 million barrels for the 37-week reporting period so far, using API data.

    We expect bunker prices will stay stable today with possible fluctuations in a range of plus-minus 3-7 USD.




2020 September 30

18:06 Drone delivers package to inland vessel in port of Rotterdam
17:52 Investments into Astrakhan Region SEZ to exceed RUB 25 billion by 2026
17:36 Yang Ming announces new Chairman
17:20 Sredne-Nevsky Shipyard launches minesweeper of Project 12700, Georgy Kurbatov
17:06 Nexans to supply 46 kilometers of umbilicalsto Subsea 7 for Senegal’s first offshore oil development
16:57 LR awards Digital Safe Security certification to Evergreen for its 12k TEU container ship newbuilding
16:46 APM Terminals Poti reports record box throughput in Sept
16:28 Nikolai Artyomov appointed as General Director of Murmansk Shipping Company
16:19 Maersk despatches first train from Rotterdam to China
16:05 Austal Australia delivers 83 metre trimaran ferry to Jr Kyushu Jet Ferry
15:53 Krasnoye Sormovo shipyard launches dry cargo carrier Alfa Atlant
15:25 Acceptance/delivery certificate signed for Victor Chernomyrdin icebreaker
15:02 NYK Group RORO carrier rescues fishermen at the Strait of Malacca
14:17 Maersk launches its cold store in South Africa
14:12 Finnpilot to undergo reorganisation as of 1 October 2020
13:24 Port of San Diego celebrates completion of Tenth Avenue Marine Terminal modernization project
13:10 RS introduces new distinguishing marks for class notation
12:09 Detachment of RF Navy’s Pacific Fleet returned to Vladivostok after long range campaign in Asia-Pacific region
11:31 Russia’s seaborne cargo traffic turnover to rise by some 10% in 2020
11:04 Port of Los Angeles and Port of Long Beach to host Clean Air Action Plan update meeting
10:50 Rosmorport announces tender for dredging in Kavkaz port’s water area
10:23 Bunker prices decrease in the Port of Saint-Petersburg, Russia (graph)
09:36 MABUX: Bunker market this morning, Sept 30
09:35 Scorpio Bulkers announces the sale of a Kamsarmax vessel
09:27 Oil prices continue decreasing
09:12 Baltic Dry Index as of September 29
08:33 Keppel reaffirms Vision 2030 and rolls out next steps for implementation
07:29 ADNOC signs 25-year agreement to service all petroleum ports in Abu Dhabi

2020 September 29

19:01 Carnival Cruise Line’s Mardi Gras departs on sea trials
18:37 Great Lakes announces receipt of $105 mln Jacksonville deepening award
18:03 Kongsberg Digital wins contract to deliver cutting-edge engine room simulator to German training institute
17:55 Murmansk Commercial Seaport expands its fleet of equipment
17:31 Milaha signs deal with Schlumberger
17:16 Expansion of Aberdeen Harbour by Van Oord in full swing
17:08 HHLA invests in the Adriatic Port of Trieste
16:29 Record-high number of international cruise ships to arrive at the Port of HaminaKotka next year
16:05 Hamworthy Pumps makes strong re-entry to tanker market
15:44 New BIMCO Shipping KPI version offers improved benchmarking concept
15:32 Free energy scan for inland vessels is to stimulate the use of shore power
15:05 Mir sailing training ship accepts new shift of cadets
14:30 Admiral Essen frigate of RF Navy’s Black Sea Fleet passes Black Sea Straits towards Mediterranean Sea
13:58 Traficom surveyed Maritime professionals’ opinions regarding N2000 fairway and nautical chart reform
13:13 Victor Shitukhin is appointed as Acting Director of its Ship Repair Plant ‘Nerpa’
12:49 Lotos shipyard lays down two self-propelled dredgers
12:11 Bunker prices decrease in the Far East ports of Russia (graph)
11:47 Port of Antwerp focuses heavily on general cargo: search begun for breakbulk candidate for Churchill Dock
11:27 Joint oil spill exercise tests inter-agency response and cooperation amidst COVID-19 pandemic
10:46 New impetus for digitalization of shipping in the COVID-19 pandemic
10:09 IAPH presents guidelines for LNG-powered vessels during port calls
09:54 Oil prices are decreasing
09:35 Port Authority of Singapore holds joint oil spill exercise
09:15 Baltic Dry Index as of September 28
08:58 MABUX: Bunker market this morning, Sept 29

2020 September 28

18:57 Okeanis Eco Tankers announces one year VLCC time charter
18:27 Bumi Armada secures third FPSO project in India
18:07 Wilhelmsen and thyssenkrupp step-up collaboration, establishing 3D printing joint venture targeting the maritime industry
17:59 RF Government to allocate RUB 27.6 billion for construction of two scientific research ships
17:28 Port of Long Beach announces closure of traffic routes leading to the Gerald Desmond Bridge
17:05 Maersk Supply Service and Ørsted to test offshore charging buoy to reduce vessel emissions
17:02 Oboronlogistics completed Northern Delivery programme of 2020