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  • MABUX: Bunker market this morning, Jan 28
  • 2020 January 28 10:02

    MABUX: Bunker market this morning, Jan 28

    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) dropped on Jan.27:

    380 HSFO: USD/MT 378.14 (-2.12)
    VLSFO: USD/MT 599.00 (-10.00)
    MGO: USD/MT 644.82 (-11.24)


    Meantime, world oil indexes fell on Jan.27 as the death toll from China's coronavirus rose and more businesses were forced to shut down, stoking expectations of slowing oil demand.

    Brent for March settlement decreased by $1.37 to $59.32 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March fell by $1.05 to $53.14 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $6.18 to WTI. Gasoil for February delivery lost $24.50.

    Today morning global oil indexes continue slight downward trend.

    The death toll from the coronavirus rose to more than 80 and the Chinese government extended the Lunar New Year holiday to Feb. 2, trying to keep as many people as possible at home to prevent the virus from spreading further. Outside China, 12 countries have also reported infections from the virus — Australia, Canada, France, Japan, Malaysia, Nepal, Singapore, South Korea, Taiwan, Thailand, Vietnam and the United States.  The rapid spreading of the virus fuelled fears of slowing oil demand and raised speculation that OPEC and its allies including Russia, a group known as OPEC+, will consider deepening production cuts. According to a report from Goldman Sachs, the coronavirus could cut into demand by around 260,000 bpd and reduce oil prices by more than $3 per barrel.

    Saudi Arabia and the United Arab Emirates, allies in the Organization of the Petroleum Exporting Countries (OPEC), tried to play down the impact of the virus, with Riyadh, the de-facto OPEC leader, saying the group can respond to any changes in demand. The OPEC+ group has been withholding supply to support oil prices for nearly three years and on Jan. 1 increased an agreed output reduction by 500,000 barrels per day (bpd) to 1.7 million bpd through March.

    American Petroleum Institute (API) reported that, U.S. petroleum exports hit a new all-time high of 9.0 million barrels per day (mb/d) in the final month of 2019. This latest milestone came as U.S. crude oil production notched a fifth consecutive monthly increase to reach a record 12.9 mb/d.

    The implementation of the IMO’s sulfur reduction regulations for bunker fuel has sidelined high sulfur fuel oil from the global marine fuel pool, but feedstock supply tightness on the US Gulf Coast has created an outlet for Russian fuel oil. Limited availability of feedstock on the USGC due to a closed arbitrage from Europe along with the pull of the bunker fuel blending pool has kept USGC vacuum gasoil and straight run fuel oil differentials well-supported, putting them on a higher shelf than refiners are willing to reach for. This has forced refiners to look at alternative options for feedstock. As a result, while HSFO demand for bunkering has evaporated due to the IMO 2020 sulfur shift, demand for the product as a refinery feedstock has jumped.

    LNG prices are on track to hit an all-time low in Asia later this summer. Gas is also at its weakest seasonally in the U.S. and Europe since the late 1990s. There’s a surplus already in the U.S. and Europe, while the mild winter in Asia build another surplus up there. As per evaluation from Gunvor Group Ltd., LNG exporters are 50 cents away from shutdowns.

    The environmental lobby group Clean Arctic Alliance has called on the International Maritime Organization (IMO) to support an immediate switch to distillate fuels for ships in the Arctic and develop a global rule prohibiting fuels with high Black Carbon emissions. Earlier a paper submitted by Germany and Finland to the IMO’s Pollution Prevention and Response (PPR) sub-committee indicated that the new IMO 2020-compliant 0.50% sulphur fuel blends contain high aromatic compound levels, which can directly impact on black carbon (BC) emissions. The Clean Arctic Alliance said that oil companies must explain how their new “Super Pollutant” shipping fuels ever came to market and the IMO must stop new “Super Pollutant” shipping fuels in the Arctic and globally.

    Libya’s oil production took a nosedive to less than 300,000 bpd last week, from over 1 million bpd following a blockade of its main oil export terminals, which has in turn prompted the shutdown of several large fields. Tribal groups affiliated with General Khalifa Haftar’s Libyan National Army, occupied the terminals last week and seized several fields in Libya’s main oil producing region. Among the affected fields were Sharara—Libya’s largest—and neighboring El Feel, the two contributing almost a third of Libya’s total output. The blockade will also cost Libya between 500,000 and 800,000 bpd in lost oil production. Before the blockade, Libya was pumping around 1.3 million bpd. The news is supporting fuel indexes at the moment.

    We expect bunker prices will drop today in a range of minus USD 4-8 for IFO and minus USD 15-22 for MGO.




2021 December 5

15:03 GasLog Ltd. places order at DSME for four 174000m3 gas carriers
13:27 USCG holds annual SaR exercise off Maui
12:33 Port of Felixstowe tops 100 million TEU
11:51 Vuosaari fairway deepening project completed on schedule, safely and under budget
10:47 New regional technology clusters in WA and Qld driving growth in Australia’s hydrogen sector

2021 December 4

15:21 MOL and Flotation Energy to explore offshore floating wind in Japan
14:51 Sembcorp Marine's LMG Marin to design world’s first zero-emission fuel tanker
13:09 USCG, royal Turks and Caicos Islands Police Force sign MOU
12:34 The Hurtigruten terminal has been renamed Jektevik terminal
11:02 Port of Rotterdam Authority embarks on partnerships with three promising maritime companies

2021 December 3

18:26 Hydrographic Company set to establish Center of Engineering and Technical Expertise
18:07 ABP Humber complete oil spill incident management exercise
17:52 Wärtsilä OPTI-DP Engagement Tool supporting the marine industry to configure optimised propulsion arrangements for DP vessels
17:45 Ocean Network Express conducts a joint crisis management drill with Seaspan Corporation
17:40 Transport Strategy of Russia until 2030 with forecast until 2035 published on official portal
17:22 MSC adds Hamburg to its feeder service „Baltic Loop 3“
17:02 Vyborg Shipyard launches KMT01 trawler named Kara Sea
16:32 South African minister visits Port of Rotterdam to discuss hydrogen exports
16:05 PD Ports contracts Konecranes to convert four RTGs to electric
15:31 Four Jones Act CTVs built to ABS Class to support U.S. offshore wind development
15:17 ABS, NYK, MTI and WinGD team-up to verify design with modeling and simulation
14:03 Jurong Port joins the Castor Initiative
13:30 ABS awards sustainability notations to two Harvey Gulf vessels
13:04 Kapitan Dranitsyn and Admiral Makarov icebreakers reinforced icebreaker group on NSR
12:57 Royal IHC delivers key components for “R.B. Weeks” to Weeks Marine
12:42 Icebreaker assistance season begins in White Sea waters
12:17 Sailing practice of 2021 on Mir sailing ship successfully completed
11:21 NCSP Group's consolidated revenue for 9M’2021 rose by 9.3%
10:53 Foreign contractors can be involved to build LNG-powered icebreakers for Arctic
10:38 MABUX: Bunker prices may demonstrate multidirectional changes with tendency to grow on Dec 3
10:29 The Korean Register publishes guidance for containers loading on bulk carriers
10:20 MSU-1 to perform reconstruction of Gorodetsky hydrosystem locks
09:57 Annual repair dredging in Gulf of Ob from 2023 estimated at 5 million cbm
09:35 Crude oil prices rise on OPEC+ decision to keep oil output increase in January
09:18 Baltic Dry Index as of December 2

2021 December 2

18:36 NRP buys handysize drybulk carrier
18:06 2M Alliance’s Far East liner service „AE 7/Condor“ calls at Hamburg again
17:54 Icebreaker assistance season starts in Big Port St. Petersburg on December 7
17:36 Vitol is first customer to approve completely digital inspection of cargo tanks
17:15 BIMCO launches new contract for employment of security escort vessels
16:45 GTT will design the tanks of four new LNG carriers ordered by Daewoo Shipbuilding & Marine Engineering to operate in Arctic waters
16:25 MOL announces delivery of next-generation coal carrier 'EeneX' series
16:05 PSA & ONE launch environmentally friendly barge service at Jurong Island Terminal
15:42 “K” Line conducts trial use of marine biofuel for decarbonization on car carrier
15:38 Wärtsilä wins order to supply cargo handling system for second LNG bunker vessel being built by Fincantieri Bay Shipbuilding
15:23 Verifavia launches industry’s first real-time carbon intensity indicator dashboard
14:55 Two more LK-60 icebreakers needed for regular year-round navigation on Northern Sea Route
14:28 Equinor and SSE reach financial close on the third phase of the world's biggest offshore wind farm
14:04 Nuclear-powered icebreaker Sibir to commence operation in Kara Sea in early January 2022 – Vyacheslav Ruksha
13:42 MABUX: Bunker Weekly Outlook, Week 48, 2021
13:02 European shipowners call for further action in the Gulf of Guinea
12:40 Rolls-Royce to supply eight mtu engines for new Svitzer tugs in Brazil
12:01 Throughput of Azov port in 11M’2021 climbed by 1% YoY
12:00 NORDEN simplifies business unit structure
11:36 Norway’s Eksfin tops NOK 10bn in offshore wind financing as Dogger Bank C reaches financial close
11:34 Annual throughput of Severnaya Zvezda project on Taimyr peninsula to exceed 7 million tonnes from 2026
11:10 MABUX: Uncertainty on Global bunker market to continue on Dec 02
10:00 Digital Twin Conference 2022 to be held virtually on 11-12 May 2022
09:33 Crude oil prices are rising in expectation of OPEC+ meeting
09:19 Baltic Dry Index as of December 1