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  • MABUX: Bunker market this morning, Mar 30
  • 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.




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