• 2020 May 5 10:02

    MABUX: Bunker market this morning, May 05

    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) changed irregular with no firm trend on May.04:

    380 HSFO: USD/MT 215.56 (+2.20)
    VLSFO: USD/MT 241.00 (+2.00)
    MGO: USD/MT 318.80 (-2.05)

    Meantime, world oil indexes changed also irregular on May.04 as countries started to ease coronavirus lockdowns, though a fresh spat between the United States and China over the origin of the virus weighed on prices.

    Brent for June settlement increased by $0.76 to $27.20 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for June delivery rose by $0.61 to $20.39 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $6.81 to WTI. Gasoil for May delivery lost $9.25.

    Today morning global oil indexes continue firm upward evolution.

    Adding to U.S. President Donald Trump’s threat last week to impose tariffs on China, Secretary of State Mike Pompeo said on May 03 there was a significant amount of evidence that the new coronavirus emerged from a Chinese laboratory.

    Oil and fuel trading have been more volatile in recent days. The market is overwhelmed by a growing supply glut as demand craters amid governments orders for people to stay at home in order to stop the spread of the coronavirus. The world’s major oil producers, led by the Organization of the Petroleum Exporting Countries and its allies, attempted to wrest control of spiraling inventories by announcing a collective cut of 9.7 million barrels per day in supply in early April. But those cuts will come too slowly to offset rising inventories.

    Rystad Energy reported, the global imbalance between oil supply and demand, which has built to 26.4 million barrels per day (bpd) in April due to the Covid-19 pandemic, is set to halve to 13.6 million bpd in May and fall further to just 6.1 million bpd. However, despite the improvement, the stock build will still overwhelm remaining global storage, which will fill in weeks. Besides, as per Rystad, if sufficient production isn’t shuttered by 19 May 2020 (the expiration of the WTI June 2020 contract), then the potential remains for another WTI price collapse, However, given that most oil futures outside of WTI do not require the buyer to physically take oil delivery, and instead have cash settlement options, the destruction to other benchmarks should be tamer.

    Goldman Sachs in turn predicts, that lower crude production due to reduced activity and OPEC+ cuts, coupled with a partial recovery in oil demand, should drive prices higher next year. The Bank raised its 2021 forecast for global benchmark Brent crude prices to $55.63 per barrel from $52.50 earlier and hiked its estimate for U.S. West Texas Intermediate (WTI) crude to $51.38 a barrel from $48.50 previously. The bank also said, that oil production has started to decline quickly from a combination of scaleback in activity, shut-ins and core-OPEC/Russia production cuts. Demand is also beginning to recover from a low base, led by a restarting Chinese economy and inflecting transportation demand in developed market economies.

    Redirected Qatari LNG shipments originally destined for Asia have arrived into Europe. Tumbling demand, and force majeure declarations in China and India as a consequence of the coronavirus pandemic have resulted in Qatari production being shipped to European markets instead. Overall LNG imports into Europe’s liquid traded markets — namely France, Spain, Italy, Belgium, the United Kingdom and Netherlands — amounted to 7.2 million mt during April, which is equivalent to 9.939 billion cu m of natural gas once reheated. This represented a 6% rise in receipts on the year, but a slight drop of 3.5% on the month, perhaps signaling that European imports may have peaked for the summer. Qatar’s monthly deliveries to the region have increased by 150% since February, claiming a 30.7% share of exports. The US relinquished its position as top exporter, but nevertheless held on to 23.8% of the market, while Russian production dipped slightly, now holding a 19.9% slice of demand for physical volumes.

    Extreme volatility with a dash of oversupply come next year, could be the trigger for the tanker market moving forward, as shipping tries to adjust to the new reality shaped by the pandemic and its economic aftermath. As per some forecasts, over the next few months floating storage is expected to be a feature of the market, while the collapse in demand outstrips global production cuts. At the very least, this will offer a degree of protection to tanker earnings facing a dramatic drop in trading volumes. However, there is also a possibility that storage demand will be greater than the fall in trade. The situation is expected to change dramatically once oil demand and supply conditions move towards a more balanced position.

    China’s issuance of a 10 million mt fuel oil export quota for 2020 was expected to tilt regional supply and demand balances. In China, the sale of fuel oil as bunker fuel to ships plying international routes is regarded as a type of export. The quota did not apply to actual fuel oil cargo exports. China typically consumes around 12 million mt/month of bonded marine fuel, which was imported from Singapore and South Korea as Chinese refineries are geared towards producing higher value light oil products. But the market’s dynamics changed this year following the switch in the mainstay bunker fuel to a lower, 0.5% sulfur content. Since then, refiners have started to ramp up supply of fuel oil for bonded bunkering, even before the quota allocations were announced.

    We expect IFO bunker prices may rise today by 3-6 USD while MGO prices will change irregular in a range of plus-minus 2-9 USD.

2020 September 29

13:13 Victor Shitukhin is appointed as Acting Director of its Ship Repair Plant ‘Nerpa’
12:49 Lotos shipyard lays down two self-propelled dredgers
12:11 Bunker prices decrease in the Far East ports of Russia (graph)
11:47 Port of Antwerp focuses heavily on general cargo: search begun for breakbulk candidate for Churchill Dock
11:27 Joint oil spill exercise tests inter-agency response and cooperation amidst COVID-19 pandemic
10:46 New impetus for digitalization of shipping in the COVID-19 pandemic
10:09 IAPH presents guidelines for LNG-powered vessels during port calls
09:54 Oil prices are decreasing
09:35 Port Authority of Singapore holds joint oil spill exercise
09:15 Baltic Dry Index as of September 28
08:58 MABUX: Bunker market this morning, Sept 29

2020 September 28

18:57 Okeanis Eco Tankers announces one year VLCC time charter
18:27 Bumi Armada secures third FPSO project in India
18:07 Wilhelmsen and thyssenkrupp step-up collaboration, establishing 3D printing joint venture targeting the maritime industry
17:59 RF Government to allocate RUB 27.6 billion for construction of two scientific research ships
17:28 Port of Long Beach announces closure of traffic routes leading to the Gerald Desmond Bridge
17:05 Maersk Supply Service and Ørsted to test offshore charging buoy to reduce vessel emissions
17:02 Oboronlogistics completed Northern Delivery programme of 2020
16:56 UTLC ERA JLC and Belintertrans-Germany GmbH open joint end-to-end regular multimodal service from China to Western Europe
16:37 Atommash shipped Reactor Pressure Vessel for Turkey's first nuclear power plant
16:14 The digital transformation is accelerating, and insurers and underwriters must adapt, says IUMI
15:51 Ships of RF Navy's Black Sea Fleet returned to their permanent locations after "Kavkaz-2020" maneuvers
15:29 New railway bridge over Kolar river put into operation in Murmansk Region
15:13 BIMCO to push for international guidelines for ship/shore communication at IMO
14:12 Submersible robot buries power cables for offshore wind farms 5.5 metres below seabed to the north of Maasvlakte
13:53 Moscow Exchange registered debut bond issue by FSUE "Rosmorport"
13:30 Blanket repair begins at Beloomut dam’s second section
13:12 Busan Port Authority concludes an agreement to establish a smart maintenance system for port facility
12:54 Average spot market price for Russian M100 product fell to RUB 11,773 pmt
12:11 Abu Dhabi Ports acquires MICCO to become a leading provider of fully integrated supply chain logistics solutions
11:36 RF Government approves National Programme for Far East Development
11:13 Aker Solutions awarded subsea contract for Breidablikk
10:51 Hornsea Two monopile installation scheduled to start next month
10:21 Shipbuilding, Ship Repair Corporation launches non-self-propelled suction hopper dredger of Project 4395
09:52 Tallink suspends operation of Helsinki-Riga route until end of October
09:30 Tallink changes weekend operating schedule of Tallinn-Helsinki route shuttle vessel Star
09:14 Baltic Dry Index as of September 25
08:48 MABUX: Bunker market this morning, Sept 28

2020 September 27

16:43 Milaha signs key deal with major oilfield services firm
15:31 RINA and SDARI: an innovative step towards 3D ship classification
14:28 Belfast Harbour is hosting an innovative study which could help change the way ports and harbours manage air quality
13:48 ABP invests £10 million to repair Swansea West Pier
12:49 Huntington Ingalls Industries restores drinking water, conducts steam testing during USS George Washington (CVN 73) refueling and complex overhaul
12:03 The Manor Endurance sets sail for her first charter
11:29 NYK and JMU introduce shipbuilding contract that guarantees propulsion in actual sea conditions

2020 September 26

15:52 Port Freeport enters partnership with CEMEX Servicios Logisticos and Union Pacific Railroad
14:32 Coast Guard rescue two mariners from disabled catamaran near Oahu
13:43 NAT orders two -2- Suezmax newbuildings in South Korea
12:38 JAXPORT CEO Green named one of Florida’s top business leaders for third year in a row
12:06 Northwest to Midwest: New rail service builds on NWSA’s intermodal growth
11:02 IUMI: Loss prevention remains a vital element in ensuring the insurability of maritime risk
10:53 Huntington Ingalls Industries breaks ground on unmanned systems center of excellence

2020 September 25

18:07 Tripartite agreement signed on establishing the FSRU terminal in the Bay of Gdansk
17:55 Baltic Fuel Company shipped first batch of bitumen
17:39 Scorpio Bulkers announces purchase of shares by Scorpio Services
17:34 Vessel “Razul Rza” sent to outer waters after the repair works
17:12 Metal Shark debuts 48-meter catamaran expedition vessel and introduces "Metal Shark Yachts" portfolio
16:51 Ningbo Containerized Freight Index rises significantly in September
16:19 OOCL's service update for Trans-Pacific trade
16:16 Representative office of Marinet opened in China