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  • MABUX: Bunker market this morning, Apr 28
  • 2020 April 28 08:50

    MABUX: Bunker market this morning, Apr 28

    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 fell on April 27:

    380 HSFO: USD/MT 208.11 (-1.79)
    VLSFO: USD/MT 235.00 (-6.00)
    MGO: USD/MT 314.95 (-12.91)


    Meantime, world oil indexes declined on Apr. 27 on worries about limited capacity to store crude worldwide and expectations that fuel demand may only recover slowly as coronavirus pandemic restrictions are gradually eased.

    Brent for June settlement decreased by $1.45 to $19.99 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for June fell by $4.16 to $16.50 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $7.21 to WTI. Gasoil for May delivery increased by $14.25.

    Today morning oil indexes continue to decrease.

    The main concern is that there is nowhere to store all the oil that is not being consumed due to the drop in global economic activity amid restrictions imposed around the world to curb the spread of the new coronavirus. Even with OPEC+ having agreed record output cuts of nearly 10 million barrels per day (bpd) from May 1, that volume is not nearly enough to offset a drop in demand of around 30 million bpd due to COVID-19 restrictions.

    U.S. crude inventories are poised to surpass in two weeks the 2017 record highs of 535 million barrels, if their average build rate of 16 million bpd over the past four weeks is maintained. The Cushing, Oklahoma delivery point for maturing contracts of WTI crude could be filled in under four weeks, if the average 4.5 million build over the last two weeks becomes a trend. U.S. production, meanwhile, has fallen by less than 1 million barrels daily over the past six weeks, sliding from a record high of 13.1 million daily in mid-March to 12.2 million bpd last week. In addition, floating crude oil storage is at an all-time high of 160 million barrels. Goldman Sachs  says the global market is on track to test storage capacity limits in as little as three weeks, requiring the shut-in of nearly 20% of world oil output.

    At the same time, Italy, the country worst impacted by the coronavirus prior to the United States, is looking to ease lockdowns from May 4 after an apparent peak in infections and deaths from the outbreak. New York, the U.S. epicenter of the pandemic, is also looking to reopen parts of its economy, following at least half a dozen of the 50 American states that have relaxed measures.

    While we're starting to see COVID-19 cases ease and some countries ease restrictions, those initial moves look fairly tentative. The market's seems to the view there's going to be no quick recovery in demand. As a result of the collapse in demand, global storage onshore is estimated to be about 85% full as of last week. In a sign of the energy industry's desperation for places to store petroleum, oil traders are resorting to hiring expensive U.S. vessels to store gasoline or ship fuel overseas.

    At the same time, the United States Oil Fund, an exchange-traded fund known as USO and popular with retail investors of oil, accelerated the risk-off in crude as it unexpectedly moved to sell all its holdings in the most active West Texas Intermediate futures contract. That triggered a massive swing in the price relationship between WTI's front-month June and nearby July contracts.

    The market is awaiting production cuts from OPEC+ which is to begin on Friday. But OPEC’s top producer and the world’s top oil exporter, Saudi Arabia, has already started cutting its oil production ahead of the official start of the new OPEC+ pact. Saudi Aramco has begun cutting oil production from around 12 million bpd, aiming to reach the 8.5 million bpd quota under the OPEC+ production cut deal intended to remove a total of 9.7 million bpd from the market in May and June. Last week, OPEC’s fourth-largest producer, Kuwait, said that it had already started to reduce crude oil supply to international markets. Oman will also cut oil production from its six largest producing blocks by 23% from their October 2018 baseline levels of 883,000 b/d to adhere with the OPEC+ production cuts.

    Russia, however, is preparing to significantly reduce the oil supply to the market from its Baltic and Black Sea ports—to the lowest in two decades in May. While Russia is likely to struggle to hit its reduction target, the slashed exports from the European seaports suggest that Moscow will be limiting the oil supply to international markets at a time when global inventories of crude and gasoline threaten to overflow amid the massive demand collapse in the pandemic.

    We expect bunker prices continue to decline today: 6-8 USD down for IFO, 10-15 USD down for MGO.




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