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  • MABUX: Bunker market this morning, Mar 26
  • 2020 March 26 10:16

    MABUX: Bunker market this morning, Mar 26

    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 March 25:

    380 HSFO: USD/MT 258.46 (-0.49)
    VLSFO: USD/MT 330.00 (+1.00)
    MGO: USD/MT 417.93 (+1.10)


    Meantime, world oil indexes rose slightly on March 25, bolstered by progress on a massive pending U.S. economic stimulus package.

    Brent for May settlement increased by $0.24 to $27.39 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May rose by $0.48 to $24.49 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.90 to WTI. Gasoil for April delivery gained $2.75.

    Today morning global oil indexes do not have any firm trend so far.
     
    U.S. senators and Trump administration officials have reached an agreement on a $2 trillion stimulus bill helping to boost markets.

    Over the weekend, Bank of America told clients the US was heading towards a recession because of the spread of the coronavirus. In addition, oil producing countries continue to increase production at record levels amidst a price war between Russia and Saudi Arabia after OPEC+ (OPEC and Russia) failed to reach an agreement earlier this month over how much further to cut production to offset the virus outbreak-induced decline in demand. Some oil producers recently reduced selling prices by up to 20 per cent.

    Two main scenarios are under discussion at the moment: the best-case scenario includes effective control measures against the pandemic and successful stimulus packages that could halt the secondary effects on the economy while a resolution to end the oil price war is also required. This scenario does not mean oil will return to $60 plus levels, and $45 plus level looks more reasonable. The worst-case scenario assumes that the global economy will be impacted by a wave of bankruptcies.

    With the Saudis holding out and flooding the market with oil, the oil glut could reach a staggering 1 billion barrels in a matter of months and $10 oil is suddenly looking like a distinct possibility. Even though the American government plans to purchase a total of 77 million barrels of oil for its strategic reserves, this can only be done at a 2 million barrels per day clip, thus leaving a massive excess of nearly 20 million barrels per day as the coronavirus continues to crush global demand.

    Barclays slashed by $12 a barrel its estimates for average WTI Crude price this year to $28 per barrel, and cut by the same amount--$12 a barrel--its outlook for the average Brent Crude price for 2020. Barclays now sees Brent Crude averaging just $31 a barrel this year, largely in line with other major banks that have already slashed their forecasts for Brent to the low $30s. The price outlook was slashed due to the spreading of the coronavirus and estimates of massive demand destruction across the world as many countries are now under lockdown, and thousands of flights are grounded. Last week, Morgan Stanley further cut its oil price forecast, expecting Brent Crude to average $30 a barrel during the second quarter, from $35 a barrel earlier.

    The U.S. is today showing signs of increased desperation as oil prices sink to levels that may pose a threat to the energy independence of the United States by kicking U.S. shale out of the market. Several recent actions taken by the United States indicate that it may be attempting to change the current trajectory of the global oil market, including by showing interest in stepping up negotiations with Saudi Arabia. The move comes after intense pressure from U.S. lawmakers and others in the industry in recent weeks, some of whom have urged President Trump to take the extreme stance of embargoing Russian and Saudi Arabian oil. Other calls to action include the Texas Railroad Commission’s suggestion to use pro-rationing that would force Texas producers to curb production.

    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 1.6 million barrels from the previous week. At 455.4 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year. This comes after two consecutive weekly inventory builds, the first of 7.7 million barrels, for the first week of March, and another, of 2 million barrels, for the second week of the month. Distillate fuel stockpiles last week shed 700,000 million barrels after during the previous two weeks, they declined by a combined 9.3 million barrels.

    Credit risk in the bunker market is intensifying amid the coronavirus outbreak, even as dropping bunker fuel costs following the recent collapse in oil prices offer some relief to shipowners. This comes as industry estimates a negative outlook for global bunker demand this year as shipping feels the heat and countries worldwide struggle to contain the pandemic. Despite that, some shipowners are considering locking in longer term contracts, but also volumes for April, as bunker fuel prices have dropped. On the other hand, some shipowners have already started taking steps to trim their capital expenditure to cope with tough markets.

    We expect bunker prices may rise slightly today in a range of plus 1-5 USD.




2021 October 27

18:22 IMC Shipping appoints Mingfa Liu as managing director for ship services
18:07 TotalEnergies and MOL hold naming ceremony of France’s first LNG bunker vessel
17:51 Damen built LNG bunkering vessel enters service in the Gulf of Finland
17:42 Rosmorport takes delivery of LNG-powered Ro-Ro ship Marshal Rokossovsky
17:40 DEME Offshore installs final foundation at Hornsea Two offshore wind farm
17:34 Port of Zeebrugge posts a strong growth in nine months of 2021
15:40 Dublin Port volumes down by 3.3% after nine months of 2021
14:33 IMO considers midterm-measures for GHG reduction from ships
14:12 BIO-UV Group adds 3d scanning to turnkey BIO-SEA BWTS retrofit services
13:50 Ocean Yield agrees to invest in six VLCCs with 10-year bareboat charters to International Seaways
13:02 WinGD invests in training as gas-fuelled fleet grows
12:52 Vyborg Shipyard contracted to build an 18 MW icebreaker for Rosmorport
12:38 Zero emissions by 2050 is not enough for most developed countries if planetary warming is to be limited to 1.5 degrees - DNV
12:37 The LNG Fleet, LNG Bunkering and Other Alternatives Conference kicks off in Moscow
12:06 FESCO to supply Indian stations in Antarctica for another 5 years
11:51 Constructora Vale Verde places a repeat order for a cutter suction dredger with Damen Shipyards
11:19 MarineMax reports record fourth quarter and fiscal year results
11:18 FSRU Marshal Vasilevskiy completes maiden voyage with LNG cargo on the Northern Sea Route
10:09 Siemens Gamesa solidifies offshore presence in U.S. with Virginia blade facility
09:55 MABUX: No firm trend on Bunker market on Oct 27
09:33 Baltic Dry Index as of Oct 26
09:25 Aquadrill announces sale of a semisubmersible drilling unit
08:57 Oil prices edge lower

2021 October 26

18:06 FarSounder and NAVTOR announce a new partnership
17:49 Russian State Duma approves a bill on wrecks removal in the first reading
17:36 FuelEU can do more for the decarbonisation of shipping – World Shipping Council
17:08 First global hydrographic innovation and technology laboratory established in Singapore
16:31 BIO-UV Group adds 3D scanning to turnkey BIO-SEA BWTS retrofit services
16:24 Wärtsilä commits to carbon neutrality by 2030
16:05 CSL Americas takes delivery of second converted self-unloading ship
15:27 Damen Maaskant Shipyards Stellendam delivers 38-metre Beam Trawler to Rederij Long Ships
15:17 Vard Electro dual-battery pack to reduce emissions for Siem Offshore subsea vessel
15:01 Baltic Shipyard marks successful loading of shield tank duo onto the 22220 nuclear icebreaker Yakutia
14:13 BW Energy signs an agreement for the acquisition of semi-submersible drilling rig for the Kudu development
13:19 Wallem Group appoints John-Kaare Aune as new Chief Executive Officer
12:13 DP World: RWG terminal to be the first carbon neutral container terminal in the world
11:32 ClassNK grants Innovation Endorsement for Products & Solutions to Weathernews’s CIM
11:02 AIDA Cruises’ new cruise ship completes its first voyage on the river Ems
10:51 Sea Machines names Trevor Vieweg as new chief technology officer
10:14 TECO 2030 receives NOK 50 million in government support for fuel cell development
10:07 MABUX: Bunker prices may demonstrate irregular changes on Oct 26
09:54 Baltic Dry Index as of Oct 25
09:51 San Pedro Bay ports announce new measure to clear cargo
09:09 Oil prices continue to climb

2021 October 25

19:59 Severnaya Verf readies the 170701 series factory freezer trawler Kapitan Sokolov for shore power connection
18:13 CMA CGM applies Winter Surcharge in the Russian ports of St Petersburg, Bronka and Ust-Luga
17:44 Estonia’s Elenger takes delivery of first Damen LGC 6000 LNG bunkering vessel
17:34 Carnival Cruise Line christens Mardi Gras in first naming ceremony in the U.S. since industry restart
16:57 Sembcorp Marine clarifies report on the Johan Castberg Project
16:47 Two ways to experience the Fort Lauderdale Int'l Boat Show
15:23 Trafigura Group closes USD2.4 billion-equivalent syndicated revolving credit facility and term loan facilities
14:22 Sea Port of Saint Petersburg’s employees support package during COVID-19 pandemic
14:02 Svanehøj launches a new control system makes P&C offloading faster and easier
13:20 PIL launches new direct China to Gulf Service – Gulf China Service
12:15 Port of Hamburg honoured as ‘Best Seaport – Europe’
11:35 LR granted AiP to Samsung Heavy Industries for liquefied hydrogen carrier
11:12 Rosmorport updates Port of Ust-Luga data in the Register of Russia’s seaports
10:17 MABUX: Bunker prices may demonstrate upward changes on Oct 25
09:38 Russian Gov’t gives green light to imposing some port services tariffs in foreign currency
09:21 Baltic Dry Index as of Oct 22