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  • MABUX: Bunker market this morning, Mar 17
  • 2020 March 17 09:31

    MABUX: Bunker market this morning, Mar 17

    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) continued firm downward trend on March 16:

    380 HSFO: USD/MT 277.26 (-11.53)
    VLSFO: USD/MT 367.00 (-15.00)
    MGO: USD/MT 451.02 (-16.83)


    Meantime, world oil indexes fell on Mar.16 as emergency rate cuts by the U.S. Federal Reserve and its global counterparts failed to tame markets and China’s factory output plunged at the sharpest pace in 30 years amid the spread of coronavirus.
     
    Brent for May settlement decreased by $3.80 to $30.05 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April fell by $3.03 to $28.70 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $1.35 to WTI. Gasoil for April delivery lost $30.25.

    Today morning global oil indexes have turned into slight upward correction.
     
    The U.S. Federal Reserve took yet another action on Mar.15 evening, announcing that the central bank would be slashing interest rates to zero percent and reactivating the crisis-era program of bond purchases known as "quantitative easing," in which the Fed buys billions of dollars in bonds to cut prices and keep markets flowing. The move comes following another announcement last week stating that the Federal Reserve pledged to inject as much as $1.5 trillion into U.S. markets to cull the growing panic sparked by the Coronavirus pandemic. Despite the supposedly rather good news, oil markets failed to react positively and continued downward evolution.

    China’s industrial output fell by a much larger than expected 13.5% in January-February from the same period a year earlier, the weakest reading since January 1990.

    An OPEC and non-OPEC technical meeting planned for Mar.18 in Vienna has been called off. A deal to cut oil output struck by the Organization of the Petroleum Exporting Countries and allies led by Russia - a grouping known as OPEC+ - is due to expire at the end of this month. On March 6, OPEC+ failed to reach a deal to deepen oil supply cuts or to extend existing curbs, deepening a slide in oil prices.

    Venezuela is in discussions with OPEC and Russia about the current oil price collapse saying it reached out to its “partners” to take steps toward opening up a new dialogue between OPEC and non-OPEC nations. Meantime, Venezuela continues to suffer under the weight of US sanctions and last week the United States added another subsidiary of Rosneft—TNK Trading International SA (TTI)—for supporting Maduro’s regime. The sanctions block all property and interests in property of TTI that are in the US or in the possession or control of US persons, as well as any entities that are owned, directly or indirectly, 50 percent or more by the designated individuals and entity.

    IHS Markit estimates that oversupply of oil could come to 800 million to 1.3 billion barrels. The projection is two to three times what existed in late 2015 to early 2016, when the Organization of the Petroleum Exporting Countries pumped more oil to combat the growing U.S. shale industry.

    Saudi Arabia’s national shipping firm, Bahri, has provisionally chartered up to 31 supertankers, up from 19 vessels sought earlier last week. The Kingdom had said on Mar. 11 it would launch a programme to boost production capacity for the first time in more than a decade, signalling to Russia and other rivals it was ready for a long battle over production levels and market share. The number of supertankers Bahri was seeking to conclude charters for had risen to up to 31 from 19 on Mar.11. Each of these vessels, known as very large crude carriers, can carry a maximum of 2 million barrels of oil.

    The shipping industry is drawing some comfort from the collapse of OPEC+ and coronavirus-led demand weakness thanks to cheaper marine fuel costs, with prices for VLSFO in Europe having experienced a greater-than-expected drop, plunging by half since the start of the year. Prices for VLSFO in Rotterdam plummeted approximately one fifth in January alone, as market participants cited softening demand as well as growing availability. Initial pockets of tight availability at Europe’s bunkering hub in Rotterdam did not appear to persist for long, partly due softened demand-related conditions from IMO 2020 which were further exacerbated by the COVID-19 outbreak.

    The International Bunker Industry Association (IBIA) has issued advice on how to mitigate the risk of COVID-19 infection during bunkering operations. In a statement issued on 16 March, IBIA said that the key issues for any personnel involved in a bunker delivery – barge crew, ship crew, surveyors or agents – are to minimize touching surfaces which may be contaminated. The virus is unlikely to persist on bunker hoses, flanges, valve wheels etc. and in any case, gloves should always be worn in these circumstances.

    We expect bunker prices may continue to decline in a range of minus 10-20 USD during the day, followed by a possible upward correction at the end of the session.




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