• Home
  • News
  • MABUX: Bunker market this morning, Jan 30
  • 2020 January 30 10:28

    MABUX: Bunker market this morning, Jan 30

    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) changed insignificant and irregular on January 29:

    380 HSFO: USD/MT 373.42 (+0.34)
    VLSFO: USD/MT 585.00 (-4.00)
    MGO: USD/MT 634.32 (+0.46)


    Meantime, world oil indexes rose for a second day on Jan.29 as worries about the impact of the coronavirus outbreak and swelling crude inventories in the United States weighed on prices, while talk that OPEC could extend oil output cuts provided support.

    Brent for March settlement rose by $0.30 to $59.81 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March fell by $0.15 to $53.33 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $6.48 to WTI. Gasoil for February delivery lost $1.75.

    Today morning global oil indexes demonstrate slight downward trend.

    Fuel markets that have been hit by the spread of the new virus out of China and its rising death toll are taking stock of the economic fallout, helped by comments from the head of the World Health Organization supporting Beijing's efforts to beat the outbreak. It is expected, that any effect of the China virus on oil demand is likely to be clearer over the coming week.

    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 3.5 million barrels from the previous week. At 431.7 million barrels, U.S. crude oil inventories are about 2% below the five year average for this time of year. Forecasts had expected a draw of 460,000 bpd, after last week the EIA reported a draw of 400,000 bpd for the seven days to January 17. Distillate fuel inventories fell by 1.3 million barrels last week. This compared with a 1.2-million-barrel decline a week earlier. Distillate fuel production averaged 5 million bpd in the week to January 24, unchanged from the previous week.

    Barclays predicts, a slump in oil demand caused by the outbreak of the coronavirus in China could pressure oil prices by $2 per barrel, revising its full-year Brent crude forecast to $62 a barrel and its West Texas Intermediate forecast to $57 a barrel. The downward revision from Barclays comes just a week after the bank said that it expects global crude demand growth to pick up in 2020 thanks to an improving global economic outlook.

    OPEC wants to extend oil production cuts until at least June from March, and may deepen the reductions should demand for oil in China be significantly reduced by the spread of the virus. The Organization of Petroleum Exporting Countries (OPEC) and allies including Russia, have been trying to stabilize prices amid questions over the global demand outlook and rising supplies, particularly out of the United States. OPEC and its allies will next be meeting in Vienna in March to decide on any further action on its output reduction agreement. Meantime, Russia had insisted it wanted the current deal to last only until March, while Saudi Arabia has been keener for the deal to last longer.

    China is set to further expand its massive oil refining capacity this year, offering support to global oil and fuel prices, and U.S. producers in particular. Already the world's No.2 oil refiner after the United States, China added 800,000 barrels per day (bpd) of capacity last year - 80% of the United Kingdom's refinery throughput - and forecasts expect a further 460,000 bpd to become operational in 2020. Domestic demand, however, has failed to keep pace. Chinese exports of diesel, gasoline and jet fuel combined jumped 20% in 2019, reaching as far as Mexico, Nigeria and Italy, and weighing on global refining margins. Exports of diesel and gasoline, however, will be capped as refiners shift production to make cleaner marine fuels to meet new international emission standards.

    A new report from the International Council on Clean Transportation (ICCT) has found that the most popular Liquefied Natural Gas (LNG) ship engine, particularly for cruise ships, emits between 70% and 82% more life-cycle greenhouse gas (GHG) emissions over the short-term compared to clean distillate fuels. The authors found that using LNG could actually worsen the shipping industry’s climate impacts compared to marine gas oil (MGO) when considering the amount of heat these emissions will trap over a 20-year period. LNG is being hailed as a climate solution by many in the shipping industry — a sector that is responsible for more global GHG emissions than major climate polluting nations, including Germany, Iran, South Korea, and Canada. As per report, if left unchecked in a business-as-usual scenario, international shipping GHG emissions could rise from its current 3% share of emissions to a staggering 17% of global GHG emissions by 2050. If ships were to continue to uptake LNG as a marine fuel, emissions could be even worse.

    SEA\LNG and the Society for Gas as a Marine Fuel (SGMF) in respond pointed out that they were not contacted prior to the release - and therefore need some time to review the report in depth - but their ‘immediate comments are related to the assumptions and methodologies used and the lack of direct input from the engine manufacturers’.

    Libya’s National Oil Corporation said earlier this week production had slumped by more than two-thirds over the last week, from over 1.2 million bpd to about 300,000 bpd. The drop followed the blockade of oil export terminals and the consequent shutdown of several oil fields. The situation could deteriorate further, with production falling to as little as 72,000 bpd: the potential upward driver in a short-term.

    Yemen’s Iran-aligned Houthi movement said on Jan.29 it had carried out an unspecified military operation on Saudi Aramco sites in the kingdom’s south, but there was no immediate confirmation from Saudi authorities of any attack.

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




2021 November 28

15:17 PGS awarded 4D contract in the North Sea
14:08 Cruises return to the Port of New Orleans with 285 ship calls estimated for 2022
13:54 Kalmar to deliver significant order of Straddle Carriers to MPET and PSA in Antwerp
12:41 Skipper ordered to pay reparation of $10,400 after collision with kayaker on the Whanganui River, NZ
12:17 Port of San Diego extends public review period for Draft EIR for PMPU
11:57 HAROPA PORT elected “Best Green Seaport 2021”
11:33 Contract award for MPSV Siem Dorado
10:48 Port of Dunkerque announces new appointments to its Executive Board

2021 November 27

14:38 Liquid Wind secures SEK 151 million for production of fossil free fuel
13:21 TECO 2030 receives NOK 50 million in government support for fuel cell development
11:09 Inmarsat offers future-proof remote control connectivity for latest sea-kit uncrewed surface vessel trials
10:54 J.P. Morgan and Havfram AS announce a series of next generation wind turbine installation vessels

2021 November 26

18:17 TECO 2030 is leading a project group that will build a hydrogen-powered high-speed vessel for the Port of Narvik
18:00 TransContainer’s IFRS-based net profit in 9M'2021 increased by 51% to RUB 14.8 bln
17:35 Royal Niestern Sander signs contract for walk to work vessel conversion
17:26 PortNews offers final edition of its magazine for 2021
17:15 Konecranes and Cargotec note CMA’s announced Provisional Findings regarding the planned merger of Konecranes and Cargotec
17:03 IMO appoints Special Advisor on Maritime Security
16:55 Nord Stream 2 delay weighs on gas prices - Gasum
16:40 Nevsky Shipyard lays down two research vessels of Project 17050
16:25 BIMCO calls for continued naval support in Gulf of Guinea after piracy incident
16:05 Alfa Laval and Orcan Energy sign a cooperation agreement for the marine market
15:43 Wärtsilä launches power limitation solutions for EEXI compliance
15:25 Hiab launches HIAB iQ.1188 HiPro loader crane with new control system
14:47 RF Government approves Transport Strategy of Russia until 2030 with forecast until 2035
13:59 Sredne-Nevsky Shipyard launches Anatoly Shlemov minesweeper of Project 12700
13:11 The Port of València hosts a rescue drill for a crane operator
12:10 GTT obtains tank design order for three new LNG Carriers from Hyundai Heavy Industries and Hyundai Samho Heavy Industries
11:54 Phase 2 of Bagayevsky hydrosystem construction begins
11:52 Ardmore moderates COP26 ‘ShipZero’ panels, discussing the realities of zero emission ships
11:17 ClassNK signs MOU on cybersecurity with Panama Maritime Authority (PMA)
10:51 MSC starts new In-Transit Cargo service
10:32 MABUX: Global bunker market to keep slight irregular fluctuations with no firm trend on Nov 26
10:22 Oboronlogistics' Ambal ferry obtaines certificate on safety management from RS
09:48 MPA and maritime partners maintain cybersecurity readiness through inaugural exercise
09:33 Baltic Dry Index as of November 25
09:17 Oil prices decrease on concerns over reduction of demand

2021 November 25

18:06 Rolls-Royce and Zhenjiang Shipyard to jointly promote tugs and workboats with mtu engines in China
17:44 Delo Group presented own Digitalization Strategy
17:16 Keppel awarded FSRU conversion and FPSO integration work worth around S$200 million
16:25 Cargo traffic within Azov-Don Basin of Russia’s IWWs fell by 14% in 2021
16:03 Great Lakes Dredge & Dock announces receipt of $92.5 mln Houston Ship Channel widening and improvement project 11 award
15:59 Damen Shipyards achieves official EU Stage V certification for its Emission Reduction system
15:30 RF State Duma ratifies Nairobi Wreck Removal Convention, 2007
15:02 Navigator Holdings announces approval in principle for new CO2 carrier designs for its Dan-Unity CO2 joint venture with Evergas
14:59 RINA, ABB, Helbio, the Liberian Registry, Wärtsilä and an Energy Major enter in proposal with hydrogen as fuel to meet IMO2050 targets
14:44 Rosterminalugol shipped 21 million tonnes of export coal over 10M’2021
14:21 BAE Systems launches next-generation power and propulsion system to help marine operators reach zero emissions
13:55 MABUX: Bunker Weekly Outlook, Week 47, 2021
13:12 Kongsberg Maritime and Norsepower MoU agreement facilitates Rotor Sail integration for shipowners
12:31 Sea Port of Saint-Petersburg allocated over RUB 21 million for implementation of its environmental programme
12:06 Port of Kiel describes path to climate neutrality by 2030
11:06 Third Finnlines hybrid ro-ro launched in China Merchants Jinling Shipyard
10:35 Mitsubishi Heavy Industries receives a major turbomachinery order for Ust-Luga LNG export plant
10:31 MABUX: Bunker prices may demonstrate slight upward changes on Nov 25
10:30 Navigation season closed on Volga-Baltic Waterways
10:06 Port of Long Beach named the best West Coast Seaport in North America
09:41 Oil market sees mixed price movements
09:22 Baltic Dry Index as of November 24
09:08 The second of Damen’s new Shoalbuster 2711 class handed over to Ports of Jersey in christening ceremony