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  • MABUX: Bunker market this morning, Apr 21
  • 2020 April 21 09:45

    MABUX: Bunker market this morning, Apr 21

    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) slipped lower on Apr.20:

    380 HSFO - USD/MT - 234.81(-2.69)
    VLSFO - USD/MT – 273.00 (-2.00)
    MGO - USD/MT – 359.55 (-3.03)


    Meantime, world oil indexes fell on Apr.20 with a U.S. crude futures contract hitting its lowest level ever, depressed by concern that U.S. crude storage will soon be full while companies prepare to report the worst quarterly earnings since the financial crisis. Besides, sell-off was exaggerated by the contract’s imminent expiry.

    Brent for June settlement decreased by $2.51 to $25.57 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May delivery fell by $55.90 to minus $37.63 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $63.20 to WTI. Gasoil for May delivery lost $13.75.

    Today morning global oil indexes do not have any firm trend so far.
     
    An extreme situation has developed in the U.S. crude oil futures markets, as the current front-month May contract expiring on Apr.21 turned negative for the first time in history, opening up the widest gap ever between it and the next contract, nearly $61 a barrel. That gigantic spread is the result of the shocking fall in demand due to the coronavirus pandemic and glut of global crude supply hitting the markets all at once. While oil-producing nations have inked a deal to cut output, those cuts will not come quickly enough to avoid a massive clog in the next couple of weeks. With U.S. oil prices trading in negative territory, that means sellers have to pay buyers for the first time ever to take oil futures. Futures traders, who would normally be able to shift from the expiring contract to the next, were finding very few buyers for the expiring May contract.

    The volume of oil held in U.S. storage, especially at the Cushing delivery point for the U.S. West Texas Intermediate (WTI) contract in Oklahoma, is rising as refiners throttle back activity in the face of weak demand. Oil in floating tanker storage is also estimated at a record 160 million barrels. The mood in other markets was also cautious as the first-quarter earnings season gets underway. The German economy is in severe recession and recovery is unlikely to be quick, given that many coronavirus-related restrictions could stay in place for an extended period. Japanese exports declined the most in nearly four years in March as U.S.-bound shipments, including cars, fell at their fastest rate since 2011.

    The Russian energy ministry has told domestic oil producers to reduce oil output by around 20% from their average February levels, which would bring Moscow in line with its commitment under a global deal. OPEC+ agreed to cut their combined oil output by 9.7 million barrels per day (bpd) in May and June in order to combat oversupply triggered by the coronavirus crisis. Under the deal, Moscow has to cut its oil production by 2.5 million bpd from May and using the reference level of 11 million bpd - the figure which includes crude oil only and exempts gas condensate, a type of light oil.

    Rystad Energy had been projecting an increase in US shale production of 650,000 bpd by the end of this year, but recent developments have caused it to take a more pessimistic view of what’s to come in the shale industry. As a result, Rystad has lowered its projected change in output for the year by 2.15 million barrels per day. Additionally, it cautioned that this figure may slide even further. So instead of shale production increasing by 650,000 bpd, Rystad is now expecting production to decrease by 1.5 million bpd by the end of 2020.

    Tanker owners could be hit with lower demand for their vessels in a few weeks’ time. Amidst an oversupplied oil market and expectations of production cuts and consequent oil price hikes, the large contango effect has made profitable several storage plays during the past couple of months, occupying a lot of ships as a result, while in addition to that, several countries decided to increase to the maximum their strategic petroleum reserves (e.g. the US SPR already has 634 million barrels in storage vs. a total capacity of 713 million barrels).

    OK Lim, the founder of the Singapore oil trader Hin Leong, is said to have instructed the company’s accounts team not to disclose around $800 million in futures trading losses. Hin Leong’s financial difficulties first came to public notice when it was reported that a number of financial institutions had refused to issue new letters of credit to the company because it could no longer service its debts. It was also reported that subsidiary company Ocean Bunkering Services Pte Ltd (OBS) planned to put bunker supply operations on hold. Hin Leong and subsidiary Ocean Tankers have now filed for court protection from creditors.

    The European Sea Ports Organisation (ESPO) and the Federation of European Private Port Operators (FEPORT) have spoken out against the European Commission’s proposal for a network of ports providing ‘fast-track’ crew changes – arguing that Member States should facilitate crew changes in all of their seaports. As per statement, neither technically nor economically is it feasible to restrict crew changes to only a select group of main ports.

    We expect bunker prices may react downward today in a range of minus 10-25 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