• 2020 March 30 09:41

    MABUX: Bunker market this morning, Mar 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) declined on Mar.27:

    380 HSFO: USD/MT 253.35 (-3.88)
    VLSFO: USD/MT 316.00 (-10.00)
    MGO: USD/MT 406.96 (-12.94)


    Meantime, world oil indexes also fell on Mar.27 as demand destruction caused by the coronavirus outweighed stimulus efforts by policymakers around the world.

    Brent for May settlement decreased by $1.41 to $24.93 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May fell by $1.09 to $21.51 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.42 to WTI. Gasoil for April delivery lost $3.50.

    Today morning global oil indexes do not have any firm trend so far.
     
    Brent oil futures may be trading at $27 per barrel but oil producers are selling their crude in the physical market at lower prices not seen since the aftermath of the Asian financial crisis of the late 1990s. Most are offloading their oil for below $20 a barrel as the coronavirus pandemic savages demand and global supply rises amid a battle between Saudi Arabia and Russia for market share. While some crude grades typically sell at a discount to Brent, the market environment is making that gap even wider and other grades that usually cost more than the European benchmark are now cheaper for the most time ever.

    A fast-rising tide of crude oil is filling up storage tanks around the world and putting a strain on the global refining system. IHS Markit estimated that the global oil market is headed for a first-half 2020 surplus of 1.8 billion barrels, exceeding the top end of the advisory firm’s estimate of available crude-oil storage capacity of 1.6 billion barrels. The main driver for the surplus comes from the unprecedented collapse in global demand as major economies curtail activity on a massive scale in an effort to slow the spread of COVID-19. Meanwhile, a price war between Saudi Arabia and Russia after Moscow rejected a Saudi-led effort to increase existing production curbs in response to the pandemic has contributed to the plunge. The existing production limits expire at the end of the month.

    The Group of 20 major economies last week pledged to inject more than $5 trillion into the global economy to limit job and income losses from the coronavirus.

    Saudi Arabia has promised a flood of cheap oil to Europe, but it looks like demand for the ultra-cheap Saudi crude doesn’t exist after all. Regardless of the cheap extra Saudi crude oil, refiners in Europe plan to cut allocations for Saudi oil by as much as 25 percent for April, as many major economies – including Germany, France, Spain, Italy, and the UK – are in lockdown mode to try to slow the spread of the coronavirus. The widespread lockdowns are leading to a massive slump in oil demand in Europe’s biggest economies. Refining operations in Europe and elsewhere are scaling back as gasoline and jet fuel demand falls off a cliff due to the pandemic.

    Russia said, a new OPEC+ deal to balance oil markets might be possible if other countries join in. It was not specified, who the new deal's members should or could be. U.S. President Donald Trump said last week he would get involved in the oil price war between Saudi Arabia and Russia at the appropriate time. As per Russia, a global economic crisis was inevitable as global debt to the world's gross domestic product had risen to 323% as of now from 230% at a time of the previous economic crisis of 2008.

    Goldman Sachs expects oil demand to fall by 10.5 million barrels per day (bpd) in March and possibly by as much as 18.7 million bpd in April. Investment bank said, a demand shock of this magnitude will overwhelm any supply response including any potential core-Organization of the Petroleum Exporting Countries output freeze or cut, adding that the scale of the demand collapse will require a large amount of production to be shut-in, of potential several million barrels per day. Such a hit on production would not likely be reversed quickly.

    The US oil and natural gas rig count dropped by 47 to 766 on the week. The drop was the largest single-week hit since the final week of December 2015, when the rig count fell 77 to 691 while oil prices were in the mid-$30s/b and falling. This past week, 40 of the 47 rigs shed were oil-directed, to drop the total to 627, while rigs chasing gas dropped by seven to 139.

    Nearly half of the rigs dropped (20) came from the Permian Basin of West Texas/New Mexico, leaving a total of 396. Operators’ breakeven prices for drilling projects are higher than oil prices are today. At $35/b WTI, more than $10/b above where prices are today, less than 10% of US onshore resources will deliver a return.

    We expect bunker prices may change irregular today in a range of plus-minus 3-6 USD.




2020 May 27

11:03 Wärtsilä upgrades the SCANTS Simulation Complex to provide advanced training at the United States Coast Guard Academy
10:32 Alexeev’s Hydrofoil Design Bureau launches fifth Valdai 45R hydrofoil for Nizhny Novgorod Region
10:05 Oil prices decrease by 0.17%-0.32%
10:03 HMM Algeciras, the largest container ship worldwide, on its way to Rotterdam
09:44 Baltic Dry Index on May 26
09:18 Bunker prices continue going up at the port of Saint-Petersburg, Russia
09:11 CMA CGM announces Overweight Surcharge (OWS) from Asia to the Mediterranean & Black Sea
09:02 MABUX: Bunker market this morning, May 27
08:19 Diana Shipping announces time charter contract for m/v Crystalia with Glencore

2020 May 26

18:32 Diana Shipping signs a term loan facility with ABN AMRO Bank to refinance two separate existing loans with the bank
18:06 Jotun hull skating solutions tested by Wallenius Wilhelmsen
17:31 Bunker prices are going up at the Far East ports of Russia (graph)
17:05 CMA CGM ends PSS for exports from West Med, North Europe, Scandinavia & Poland, Baltic, Italy Adriatic & Black Sea to Mayotte, Seychelles, Comoros & Madagascar outports
16:30 Damen announces Electric Cutter Suction Dredger 650
16:05 Aker Solutions starts CCS test program at Preem refinery in Sweden
15:35 Norsepower Rotor Sail installation completed on Scandlines ferry in just hours
15:01 Baltiysky Zavod lays down forth 60-MW icebreaker of Project 22220
13:59 Mitsui O.S.K. Lines and LNG Terminal Wilhelmshaven sign a contract to build and charter an LNG terminal ship
13:42 RF Government approves Customs Service Development Strategy till 2030
13:15 Rospotrebnadzor issues guidelines on prevention of COVID-19 spread for sea and river passenger ports and terminals
12:37 Sredne-Nevsky Shipyard starts cutting steel for construction of first passenger ship of Project А45-90.2
11:58 Vostochny Port invests RUB 850 million in completion of wind and dust protection facilities
10:40 A.P. Moller - Maersk, DSV Panalpina, DFDS, SAS and Ørsted join forces on an ambitious sustainable fuel project
10:04 Oil prices rise by 1.97%-3.43%
09:49 Cai Mep International Terminal welcomes the first maiden call of TP17 service deployed by 2M alliance
09:43 4 Caspian Ports discussed joint measures to combat COVID-19 pandemic
09:21 LUKOIL installs accommodation platform jacket at v.i. Grayfer field
08:47 MABUX: Bunker market this morning, May 26

2020 May 25

17:46 Transit cargo flow by Primorye 2 ITC to Zarubino port surged by 64.8%
17:20 Wilson ASA enters into agreement with Arkon Shipping to strengthen European presence
16:42 Oboronlogistics took part in RF Transport Ministry’s meeting
16:18 Average wholesale prices for М-100 HFO rose to RUB 6,405 in RF spot market
15:55 RF Government bans imports of diesel and marine fuel
15:30 Second shallow-draft dry cargo barge of Project RDB20, Belmax 10, floated out
15:04 Upgrading of Wärtsilä FuelFlex Injection Control Unit enables reliable operation with low-sulphur fuels
14:14 UN must persuade governments to adopt crew change protocols or risk ‘humanitarian disaster’ - ICS
13:14 Port of Melbourne appoints Shaun Mooney to lead commercial operations
12:13 APM Terminals Algeciras connects to the national 66KV energy network
11:51 Global Ports handles first batch of BMWs in Saint Petersburg under its contract with ROLF SCS
11:33 Russia's Main Department of State Expertise approves construction of MSCC Bronka terminal
11:00 Drone delivers package to vessel in the port of Rotterdam for the first time
10:55 Austal Vietnam launches first vessel - 94 metre catamaran ferry for Trinidad and Tobago
10:12 C&C Marine and Repair increases its production capacity
09:56 Throughput of port Shanghai (China) in 4M’20 fell by 16% to 149.5 million tonnes
09:35 Oil prices rise by 0.26%-0.78%
09:17 Baltic Dry Index on May 22
09:00 MABUX: Bunker market this morning, May 25

2020 May 24

17:08 Teekay Corporation reports Q1 2020 results
16:43 BIMCO, Institute of Chartered Shipbrokers, Videotel partner in online education collaboration
15:37 ABS launches new guide for wind-assisted propulsion systems
13:44 CMA CGM announces EHS to Abidjan, Côte d'Ivoire
12:38 Longitude Singapore worked on the basic design for a new build cable lay ship for Taiwan’s offshore wind industry
11:07 Coast Guard Cutter Kiska conducts patrol off Northern Mariana Islands

2020 May 23

21:03 Huntington Ingalls Industries to present at Bernstein’s Strategic Decisions Conference
20:32 FMC orders investigation into alleged discriminatory Canadian regulations
20:21 Essential vessel repowered with Volvo Penta IPS amid lockdown
19:32 Ingalls Shipbuilding lifts 320-ton aft deckhouse onto guided missile destroyer Jack H. Lucas (DDG 125)
17:28 USCG, good Samaritans rescue seven passengers from capsized vessel
15:25 ONE to offer the first direct coverage from China to Indonesia with the new CID service

2020 May 22

18:02 Severnaya Verf shipyard launches 22350-series frigate Admiral Golovko