• 2019 October 17 09:21

    MABUX: Bunker market this morning, Oct 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) changed irregular on Oct.16:

    380 HSFO - USD/MT – 368.07 (-4.85)
    180 HSFO - USD/MT – 409.56 (-3.09)
    MGO - USD/MT – 659.93 (+2.19)


    Meantime, world oil indexes slightly rose on Oct.16, as investors pinned hopes on a potential Brexit deal between Britain and the European Union and on signals from OPEC and its allies that further supply curbs could be possible.

    Brent for December settlement increased by $0.68 to $59.42 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for November delivery rose by $0.55 to $53.36 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $6.06 to WTI. Gasoil for November gained $4.25.

    Today morning oil indexes demonstrate slight downward evolution.

    The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all see global oil inventories building in the first half of next year, as they almost unanimously cut their forecasts for oil demand growth for 2019 and 2020. The three agencies made also further cuts to their forecasts for oil demand growth this year in their latest reports and, for the first time, all of them now see global oil use increasing in 2019 by less than 1 million barrels a day compared with 2018. And those forecasts could still fall further. All three of the agencies also have cut their estimates for the first three quarters of the year, making particularly big reductions to their assessments of demand growth in the first half. Slowing economic growth will have a knock-on effect on oil demand, so it can be expected further downward revisions to the demand numbers next month.

    The International Monetary Fund in turn slashed its global growth forecast once again, predicting economic growth will fall to its weakest rate since the financial crisis a decade ago. The IMF said that the world economy is in a “synchronized slowdown,” and will only expand by 3 percent this year. At one-point last year, the IMF forecasted 3.9 percent growth for 2019. Fund said in a statement that growth continues to be weakened by rising trade barriers and increasing geopolitical tensions. For the four largest economies – the U.S., China, the Eurozone and Japan – the IMF sees no improvement in their growth prospects over the next five years. Meanwhile, U.S. shale production has flatlined this year, ending years of explosive growth. The rig count has fallen sharply and companies are cutting drilling and spending. However, even with significant geopolitical risks to supplies in the Middle East and a slowing U.S. shale sector, oil and fuel prices have failed to rally so far.

    Prices found some support from indications that the Organization of the Petroleum Exporting Countries could announce further curbs to oil output in December. OPEC and its allies meet on Dec. 5-6 in Vienna to review output policy. OPEC Secretary-General Mohammad Barkindo said there is an option for OPEC and its allies to implement deeper cuts in oil production. As per Barkindo, OPEC will do what it can with allied producers to sustain oil market stability beyond 2020, in a signal the producers will continue to cooperate. Russia and other producers have a deal to cut oil output by 1.2 million barrels per day until March 2020, but Russian officials have so far said it was too early to discuss additional output cuts.

    Talks between Britain and the European Union to get a Brexit deal ahead of a summit of the bloc's leaders this week are underway, but it is still unclear if Britain could avoid postponing its departure, due on Oct. 31. Any deal that avoids a "hard" or no-deal Brexit should boost economic growth and in turn oil growth and prices.

    The United States carried out a secret cyber operation against Iran in the wake of the Sept. 14 attacks on Saudi Arabia’s oil facilities, which Washington and Riyadh blame on Tehran. The operation took place in late September and took aim at Tehran’s ability to spread “propaganda.” The attack highlights how President Donald Trump’s administration has been trying to counter what it sees as Iranian aggression without spiraling into a broader conflict.

    The global shipping industry has seen freight rates soar over the past few weeks as traders and shippers stay away from booking oil tankers owned by Chinese tanker companies that came under U.S. sanctions for dealing with oil from Iran. The cost of chartering supertankers to carry crude oil from the Middle East to Asia has soared and made oil procurement costs so high to the point of eroding refining profits for refiners. Complex refining margins in Singapore plunged to just US$2.91 per barrel at the end of last week, from a high of over US$10 a barrel in mid-September. The current refining margins in Asia are close to the lowest levels for this time of the year in five years.

    The American Petroleum Institute (API) has estimated a major crude oil inventory build of 10.45 million barrels for the week ending October 10—compared to analyst expectations of a much smaller 2.878-million-barrel build. Last week saw a large build crude oil inventories of 4.13 million barrels, according to API data. The EIA estimated that week that there had been a smaller build of 2.9 million barrels. After today’s inventory move, the net draw for the year is 15.27 million barrels for the 42-week reporting period so far, using API data. US crude oil production as estimated by the Energy Information Administration showed that production for the week ending October 4 increased to 12.6 million bpd, another new all-time high.

    We expect bunker prices may turn into slight upward trend today in a range of plus 4-8 USD.




2021 April 22

18:05 Xeneta launches public Xeneta Shipping Index for short-term market, unlocking daily rate tracking
18:04 Cargo navigation begins on the Upper Volga
17:53 Genco Shipping & Trading to acquire fuel-efficient Ultramax vessel
17:15 Port of Kapellskär cargo volume up to 3000 metric tons in Q1 2021
16:45 Maersk’s Destination Cargo Management program reduces demurrage and detention exposure by 50%
16:23 Pavel Leonov ferry completed its sea trials on the Ladoga Lake
16:05 Rolls-Royce delivers 16-cylinder version of mtu Series 8000 for the first time
15:41 Bunker Weekly Outlook, Week 16, 2021
15:24 ABS publishes analysis of the greenhouse gas footprint of the leading alternative marine fuels
15:04 Samskip enters into new formal agreement with sustainable cargo initiative GoodShipping
14:48 Icebreaker assistance period ends at the port of Ust-Luga
14:31 Plug and Play launches maritime innovation platform in Antwerp
14:13 ABS Consulting and Verifavia Shipping partner to deliver turnkey IHM solution to maritime industry
13:51 Volgotrans successfully completes e-document flow tests
13:35 Icebreaker assistance period ends at the port of Primorsk
13:12 MPA and SMF step up efforts for maritime workforce transformation
12:34 Rosmorport tests e-Navigation system in the seaport of Sabetta
12:30 DNV awards first merchant vessel SILENT-E notation
12:12 Aker Solutions completes first phase of the Hywind Tampen Construction
11:39 Russian Maritime Register of Shipping takes part in NEFTEGAZ 2021
11:17 Wan Hai Lines to launch independent TVT2 service
10:46 Russian Fishery Company starts supplying surimi to the domestic market
10:20 FESCO refinanced its obligations to VTB
09:33 Oil prices decrease as COVID-19 cases grow in India and Japan
09:11 Baltic Dry Index as of April 21
06:57 The first batch of the next generation of electric boats arrives in New York

2021 April 21

18:44 Russian President suggests providing federal infrastructure loans
18:35 MAN Energy Solutions to partner on world’s largest liquid-air energy-storage (LAES) project
18:05 Port of Dampier sets sail with 10-year roadmap
17:35 Port of Amsterdam postpones the implementation date of the Green Award requirement for river cruise ships for a year
17:33 First Candela C-7 hydrofoil delivered to customers on the US East coast
17:15 Maersk launches rail service between Gurugram and APM Terminals Pipavav Port
16:35 Wärtsilä seeks breakthrough in clean propulsion as part of Finnish consortium
16:15 BIMCO asks the IMO to improve the ballast water record book
15:14 Russian container transport giant RUSCON opens its office in the Netherlands
14:41 Shipping bodies call on world leaders to bring forward discussions on global market-based measures
14:18 Volvo Penta is now taking orders on its full Stage V marine engine range
14:13 DEME wins first floating offshore wind EPCI contract for the Leucate wind farm
13:02 S&P affirmed DeloPorts rating at B+ based on the results of 2020 with stable outlook
12:15 Korean Register launches latest ‘SeaTrust-HullScan’
11:30 MPA inks collaborations with partners to advance decarbonisation efforts
11:07 IAP on Maritime Decarbonisation unveils nine pathways to support decarbonisation in the maritime industry
10:37 European first for UK firm pioneering technology to transform shipping industry
10:27 Europe’s first Maritime value chain project for Liquid Hydrogen is short-listed as Norwegian candidate for IPCEI Hydrogen
09:51 Icebreaker assistance period ends at Passenger Port of St. Petersburg from April 21
09:30 Oil prices decrease amid returning COVID-19 risks
09:12 Baltic Dry Index as of April 20

2021 April 20

18:19 China's Sinopec successfully starts up two Dupont™ STRATCO® alkylation technology units
18:05 MINT Fund grant scheme to provide maritime technology start-ups in Singapore
17:25 MPA launches Singapore’s first Maritime Drone Estate
17:15 SEA-LNG warns against delay in addressing shipping decarbonisation
17:08 Launch of Singapore’s MDE as test bed for drone technologies
16:44 RF President signs law on long-term agreements for providing services involving nuclear-powered icebreakers
16:15 ONE launches Green Strategy Department
15:43 Solstad Offshore signs long-term contract for PSV in UK
15:20 ABS and Rainmaking to support Singapore’s decarbonization entrepreneurs
15:05 Icebreaker assistance period ends at the port of Vysotsk in the Leningrad Region
14:26 Budget allocations for construction of LNG terminal in Kamchatka Territory to exceed RUB 21 billion
14:02 Hiab to supply 37 loader cranes in Spain to maintain railway infrastructure
13:23 Alfa Laval starts testing methanol fuel cell systems for sustainable marine power supply