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  • MABUX: Bunker market this morning, Apr 23
  • 2020 April 23 09:08

    MABUX: Bunker market this morning, Apr 23

    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 firm downward trend on April 22:

    380 HSFO: USD/MT 209.13 (-12.00)
    VLSFO: USD/MT 239.00 (-18.00)
    MGO: USD/MT 329.92 (-13.60)


    Meantime, world oil indexes changed irregular on Apr.22 supported partly by voluntary as well as the prospect of forced production cuts to tackle a glut caused by the coronavirus crisis.

    Brent for June settlement increased by $1.04 to $25.57 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for June delivery rose by $2.21 to $13.78 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $6.59 to WTI. Gasoil for May delivery lost $4.00.

    Today morning global oil indexes continue slight upward evolution.
     
    U.S. President Donald Trump said on Apr.21 he has asked his cabinet to devise a plan to inject cash into the ailing U.S. oil-drilling industry to help it survive a historic collapse in crude prices. U.S. oil and gas companies from Texas to Wyoming have struggled to stave off bankruptcy amid worldwide stay-at-home orders and business stoppages spurred by the coronavirus outbreak that have obliterated global demand for fuel. Trump has also separately announced plans to fill up the U.S. Strategic Petroleum Reserve. Congress so far has declined to provide the funding due to opposition from Democrats who oppose aiding the oil industry when laid-off workers and other sectors also need help. In the meantime, the Department of Energy is in talks with oil companies to lease some of the available space.

    Meantime, a historic crash in crude prices is driving U.S. shale into full-on retreat with operators halting new drilling and shutting in old wells, moves that could cut output by 20% for the world’s biggest producer of oil. According to IHS Markit Ltd., for shale companies, the price of West Texas Intermediate crude went to crisis mode in just a few days, with many now unsure whether there will even be a market for their oil. Some 1.75 million barrels a day is at immediate risk of shutting down while the number of new wells is forecast to plunge almost 90% by the end of the year. As per evaluation made by Evercore, the potential for zero revenues in the second and third quarters this year may mean that large U.S. oil explorers burn through $7 billion in liquidity. By the end of it all, as many as 30% of publicly traded shale explorers could be forced to exit the market one way or another.

    Goldman Sachs predicts, the recovery in U.S. oil prices is still weeks away. The reason for the note of caution is because cutting oil production is not a simple matter. It takes time and costs money, and, perhaps more importantly, it could damage the well. There has been no change yet in demand for crude oil globally, and U.S. producers are running out of storage space for their product. Oil in floating storage had reached a record high at 160 million barrels last week, according to sources from the shipping industry. That was a 100-percent increase over the previous week as traders scrambled to store their unsold and currently unsellable oil.

    Saudi Arabia has hinted for a second time in two weeks that it is ready to take further measures with OPEC to restore oil market stability. As per statement made by Saudi cabinet on Apr.21, government discussed Saudi Arabia's willingness to achieve stability in the oil market, its affirmation with the Russian Federation of a firm commitment to implement agreed targeted cuts over the next two years, their continuing monitoring of oil market situations closely, and being prepared to take further measures jointly with OPEC+ and other producers. It seems, however, that the new deal is too little too late to make a meaningful impact on growing global inventories amid crashing demand.

    For the first time ever, Chinese refinery throughput has surpassed refinery crude processing in the United States as China emerges from the lockdown. At the same time, U.S. fuel demand continues to plummet amid lockdowns in many states. China’s independent refiners began to restore some curtailed production in March, taking advantage of the cheap oil amid the oil price war as the country started to lift lockdowns and ease travel restriction measures gradually. In the week to April 10, refineries in the U.S. processed an average of 12.7 million bpd of crude. This compares with 14.9 million bpd three weeks ago.

    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 15.0 million barrels from the previous week. At 518.6 million barrels, U.S. crude oil inventories are about 9% above the five-year average for this time of year. This comes after a record-breaking 19.2-million-barrel build the EIA reported last week, and an API inventory build estimate of 13 million barrels, reported on Apr.21. Forecasts expected the EIA to report an inventory build of a little over 16 million barrels.

    We expect IFO bunker prices may rise in a range of plus 5-15 USD while MGO prices will change irregular in a range of plus-minus 3-5 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