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  • MABUX: Bunker market this morning, Apr 01
  • 2020 April 1 09:16

    MABUX: Bunker market this morning, Apr 01

    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 slight downward movement on March 31:

    380 HSFO: USD/MT 243.67 (-5.29)
    VLSFO: USD/MT 308.00 (-6.00)
    MGO: USD/MT 398.02 (-6.55)


    Meantime, world oil indexes firmed on Mar. 31 after U.S. President Donald Trump and Russian counterpart Vladimir Putin agreed to talks aimed at stabilising energy markets.

    Brent for May settlement decreased by $0.02 to $22.74 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May rose by $0.39 to $20.48 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.26 to WTI. Gasoil for April delivery gained $7.50.

    Today morning global oil indexes do not have any firm trend so far.
     
    US President Donald Trump and Russian President Vladimir Putin agreed on Mar.30 to have energy officials from both countries discuss the dire state of the global oil market. Neither President detailed what specific issues or possibilities they would discuss. Meantime, The U.S. is also applying pressure to Saudi Arabia. It would take—at a minimum—both Saudi Arabia and Russia to effect any real change. Even if all of OPEC will continue with further production cuts, it is doubtful at this point that even aggressive action will have enough potential to trim the oil glut and boost prices at a time when the coronavirus continues to shrink demand. Although the futures market is seeing a recovery at the moment, physical cargoes are selling in some regions at single digits, with sellers offering hefty discounts

    Under Rystad Energy’s updated base case scenario of $34 per barrel in 2020 and $44 per barrel in 2021, global capital expenditure (capex) for exploration and production firms (E&Ps) is expected to drop by up to $100 billion this year, about 17% versus 2019 levels. Expected decline this year will make 2020’s capex volumes, estimated at about $450 billion, the lowest in 13 years. As the most flexible of the supply segments in terms of cost reduction, US shale players are expected to reduce their investments by about 30% year-on-year. These measures will be quickly reflected in the oil market supply, with shale oil supply growth set to slow down in 2020.

    IHS Markit estimates, globally, the countries/regions with the lowest oil capacity (estimated in how many days of crude oil production could be placed in available storage) are Nigeria, Brazil, Ecuador, and Alberta in Canada. The U.S. PADD 4 Rocky Mountain district, which includes Wyoming and Colorado, has 12.8 days of storage capacity, while all U.S. districts combined have 30.2 days of storage. Russia’s days of storage are 8.0, while Saudi Arabia’s are estimated at 18.0.

    Russia’s largest oil producer, Rosneft, has announced that it is halting operations in Venezuela and selling its assets there (including multiple joint ventures, oil-field services companies, and other activities) to a company fully owned by the Russian government. The move appeared to be aimed at protecting Rosneft from U.S. sanctions while Russia continues supporting Venezuelan President Nicolas Maduro. The United States has imposed sanctions on two Rosneft subsidiaries, including a company based in Geneva that sells crude oil to European customers.

    Supertanker rates are surging again, for a second time this month, as a growing global glut is making more traders and companies look to charter carriers to store oil at sea and sell at a later date to profit from the market structure. The Saudi pledge to start flooding the market with oil as early as this week is also driving up freight rates for very large crude carriers (VLCCs). At the moment traders and the trading arms of oil majors are looking to charter tankers for floating storage as the oil market structure has flipped to contango: the market situation in which front-month prices are lower than prices in future months, pointing to a crude oil oversupply and making storing oil for future sales profitable. The run on supertankers during the massive glut and the Saudi supply surge sent supertanker rates for the route from the Middle East to China jumping to $180,000 a day on Mar.30. That’s double from the $90,000 a day rate in the middle of last week.

    It is forecasted LNG trade to grow by just 2% in 2020 due to low demand. A mild winter and a decline in Asian spot LNG prices have resulted in higher inventories in both Europe and Asia thereby impacting imports. This scenario is unlikely to change as the market enters the seasonal low-demand period. Reduced LNG demand in Europe and Asia resulted in low LNG prices globally with the UK NBP price at $2.20 per MMBtu in March 2020, falling 29% from the start of the year while Asian spot LNG price declined to $3.40 per MMBtu in February from $5.90 per MMBtu in January.

    The American Petroleum Institute (API) estimated on Mar.31 a large crude oil inventory build of 10.485 million barrels for the week ending March 28, as 75% of Americans remain under lockdown in some form or another. This inventory move was expected to be for a much smaller build of 3.997-million-barrels. In the previous week, the API estimated a surprise draw in crude oil inventories of 1.247-million barrels, while the EIA’s estimates were more bearish, reporting a build of 1.6 million barrels for the week. US crude oil production as estimated by the Energy Information Administration showed that production for the week ending March 20 slipped back slightly to 13.0 million bpd.

    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