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  • MABUX: Bunker market this morning, Mar 24
  • 2020 March 24 10:12

    MABUX: Bunker market this morning, Mar 24

    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) demonstrated slight downward trend on March 23:

    380 HSFO: USD/MT 258.85 (-3.97)
    VLSFO: USD/MT 330.00 (-7.00)
    MGO: USD/MT 419.19 (-7.02)


    Meantime, world oil indexes did not have firm trend on Mar.23 with demand still sliding as travel and industrial activity contracted across the globe in a bid to stem the spread of coronavirus.

    Brent for May settlement increased by $0.05 to $27.03 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May rose by $0.73 to $23.36 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.67 to WTI. Gasoil for April delivery lost $15.00.

    Today morning global oil indexes have turned into slight upward correction.
     
    The demand destruction caused by the coronavirus pandemic comes as the oil market contends with the unexpected price war that erupted between producers Russia and Saudi Arabia, effectively ending an OPEC+ alliance and flooding the market with barrels.

    On Mar.20, OPEC Secretary General Mohammad Barkindo invited Texas Railroad Commissioner Ryan Sitton to the organisation’s summer meeting in June. Although this invitation quickly raised hopes for a deal to stabilise oil prices, Sitton attracted criticism as he called for decreased production of Texan crude output for the first time since 1970.  Neither Saudi Arabia nor Russia are backing down from their strategy in the ongoing price war. The increased supply that both countries are insisting on could soon send prices crashing even lower, as the unabating spread of the COVID-19 pandemic continues to lower demand.

    Goldman Sachs said supply restraint by core-OPEC producers could push second-quarter Brent oil prices up to $30 a barrel, while U.S. measures to support the market could underpin prices in the near term. Meantime, even if any U.S. measures could support the oil market into the second half of the year, however, Goldman Sachs said accompanying supply cuts would still not be enough to offset the 8 million barrels per day (bpd) demand loss – brought about by countries slowing economic activity to halt the spread of the coronavirus which has caused nearly 10,000 deaths worldwide.

    Rystad Energy predicts, global storage infrastructure is in trouble and will be unable to take more crude and products in just a few months. Current liquid balances show supply surpassing oil demand by an average of nearly 6 million bpd in 2020, resulting in an accumulated implied storage build of 2.0 billion barrels this year. Based on Rystad analysis, the world currently has around 7.2 billion barrels crude and products in storage, including 1.3 billion to 1.4 billion barrels currently onboard oil tankers at sea. On average, 76% of the world’s oil storage capacity is already full.

    Wood Mackenzie in turn has reported that China’s crude stock (including strategic and commercial petroleum reserves) could reach 1.15 billion barrels in 2020 – but limitations in storage capacity are reducing the fill rate. Since the last oil price crash in 2014, China has been accelerating its crude imports for strategic and commercial storage from about 200 million barrels in 2014 to 900 million barrels in 2019. This is equivalent to about 70 days of its 2019 oil demand and 70% of its 2019 total storage capacity. China is expected to continue importing crude to fill its reserves taking advantage of lower oil prices. But this time, China could build its crude reserves by up to 300,000 barrels a day (b/d) from March 2020 to the end of 2020, due to limitations in storage capacity, as storage capacity utilisation reaches 90% this year.

    Refining operations in Europe and elsewhere in the world are being curtailed as gasoline and jet fuel demand is falling down due to the enormous demand destruction in the spreading coronavirus pandemic. In Europe, oil majors are shutting down refinery units as major economies are under lockdown and flights are severely restricted. Across Europe, lockdowns in Italy, Spain, and France are crushing oil demand and German traffic is down 40 percent. Falling demand, including jet fuel demand, may force Japanese refiners to cut run rates. Japanese refiners are stocked with crude for April and don’t have much room to take extra barrels from Saudi Arabia, regardless of how cheap the flood of additional supply will be.

    Asian spot liquefied natural gas (LNG) prices rose for a third straight week on slowly recovering demand in China as local transmissions of coronavirus ease but a flood of cargoes from the West could reverse price gains. The average LNG price for May delivery into northeast Asia LNG-AS was estimated at $3.50 per million British thermal units (mmBtu), up 20 cents from the previous week. Prices for cargoes delivered in April were estimated around $3.70/mmBtu, up 30 cents from a week ago. European gas demand could fall more than 4% over the next two months on depressed commercial and industrial activity as more countries lock down to tackle the spread of the novel coronavirus. This could see more cargo flows towards Asia, eventually depressing prices.

    We expect bunker prices may change irregular today in a range of plus-minus 5-10 USD.




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