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  • MABUX: Bunker market this morning, May 05
  • 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.

2022 January 28

18:30 Smooth Ports completes the first project phase of the project
18:12 Two oil garbage disposal vessels put into operation in Novorossiysk
18:05 MOL and Mitsui sign time charter contract for LNG carrier
17:56 Finnlines upgrades its Finland–Sweden route
17:36 NRP Maritime Asset Management announces launching and first close of Premium Maritime Credit Fund
17:26 NYK and Uyeno Group form capital and business alliance
17:06 UPM sets its sights on Rotterdam for new biorefinery
16:51 New fairway drafts offer shipping greater flexibility on Lower and Outer Elbe
16:41 GCT Bayonne orders Konecranes Noell Sprinter Carriers
16:31 ZIM provides update on operational cooperation agreement with the 2M Partners
16:21 ENEA and Fincantieri team up for energy, environment, and circular economy
16:15 Furetank orders new climate friendly tanker for a green fleet
16:10 MAN Energy Solutions delivers engines to Chantiers de l’Atlantique
15:57 USCG intercepts 191 Haitians near Bahamas
15:55 Project cargo on the rise at Port of Antwerp thanks to EU Green Deal
14:26 Tenders for dredging and cleaning of Saint-Petersburg waterways to be announced by ad hoc municipal committee
14:03 Damen Shipyards to build four RoPax ferries for Penang Port, Malaysia
13:41 Nefteflot lays down survey ship of Project RDB 66.62
13:27 Ulstein awarded offshore wind ship design contract for Shanghai Electric and ZPMC
12:34 Universe Shipping opts for RMS 2000 V-rotor systems from Damen Marine Components
12:02 EST-Floattech delivers battery systems to 3 Damen Patrol Vessels 1304 Electric
11:30 KSK Grain Terminal handles grain vessel of 120,000 tons in capacity
11:01 MarineMax reports record fiscal 2022 first quarter results
09:59 RF Navy's frigate Admiral Gorshkov practiced artillery firing in the Barents Sea
09:34 Baltic Dry Index as of January 27
09:16 Crude oil market sees upwards price correction
08:57 MABUX: No firm trend expected on Global bunker market on Jan 28

2022 January 27

18:35 ABP launches the first of its new tranche of port-manufacturing sites at Port of Hull
18:05 Indian Register of Shipping classes first 100 pax hybrid catamaran (battery powered) ferry
17:52 Onezhsky Shipyard launches lead crab catching ship built for Russian Crab Group
17:35 Kawasaki Heavy Industries announces delivery of LPG-fueled LPG carrier CRYSTAL TRINITY
17:05 NAPA and MOL roll out digital Navigational Risk Monitoring Solution on over MOL’s 700+ ships
16:45 Port of Antwerp, North Sea Port Flanders and Port of Zeebrugge launch the stimulus programme ‘Accelerating modal shift’
16:36 Construction of digital shipyard commenced at Onezhsky Shipbuilding, Ship Repair Yard
16:17 Suez Canal Economic Zone signs local and foreign contracts for Sokhna port new berths works
15:35 Construction of support fleet base in Ust-Luga approved by Glavgosexpertiza
15:32 ABS grants AIP to a coordinated design for a wind turbine installation vessel
15:14 Tarragona Port Authority has awarded Global Ports Holding a 12-year concession to manage the services for cruise passengers
15:00 Marine Rescue Service removed all oil products from Chinese ship Xing Yuan
14:53 Cooperation Agreement signed between ThPA S.A. and Suez Canal Economic Zone
14:42 DP World joins forces with Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping
14:32 A.P. Moller - Maersk shares millions of weather observations to aid climate science
14:22 IMB releases 2021 Piracy and Armed Robbery Report
14:04 FESCO launches regular container train from Vladivostok to Ulyanovsk
13:40 Swissterminal starts a new rail link between the port of Antwerp and Ottmarsheim
13:28 FESCO confirms compliance with standards for operation of vessels in US waters
13:03 Georgia Ports Authority tops 5.5M TEUs, 650K units in 2021
12:49 NYK delivers methanol-fueled chemical tanker
12:02 Throughput of Yeisk port in 2021 remained flat, year-on-year
11:30 Tallink Grupp’s vessel Baltic Queen heads to Naantali, Finland for regular dry-docking
10:56 Throughput of Temryuk port in 2021 rose by 10.3% YoY
10:37 MABUX: Bunker Weekly Outlook, Week 04, 2022
10:33 Haldor Topsoe becomes member of Hydrogen Council to promote green hydrogen solutions
09:48 Registration is underway for 5th Hydraulic Engineering and Dredging Congress
09:29 Baltic Dry Index as of January 26
09:12 Crude oil prices decrease on reduction of supply disruption risks
08:57 MABUX: Global bunker market to continue firm upward evolution on Jan 27

2022 January 26

18:06 Safe Bulkers announces agreement for the acquisition of one Capesize class dry-bulk Japanese vessel
17:54 Olga Naumova takes helm of Russian Fishery Company
17:41 Shearwater GeoServices awarded Western Australia multicomponent surveys by Santos