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  • MABUX: Bunker market this morning, May 13
  • 2020 May 13 09:53

    MABUX: Bunker market this morning, May 13

    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) demonstrated irregular changes on May 12:

    380 HSFO: USD/MT 229.46 (+0.57)
    VLSFO: USD/MT 260.00 (-2.00)
    MGO: USD/MT 324.44 (-2.70)


    Meantime, world oil indexes rose on May.12 boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June in a bid to help drain the glut in the global market.

    Brent for July settlement increased by $0.35 to $29.98 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for June delivery rose by $1.64 to $25.78 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $4.20 to WTI. Gasoil for May delivery gained $10.00.

    Today morning global oil indexes have turned back to slight downward trend.

    Saudi Arabia said it would cut production by a further 1 million barrels per day (bpd) in June, slashing its total production to 7.5 million bpd, down nearly 40% from April. The United Arab Emirates and Kuwait committed to cut production by another 180,000 bpd in total. Kazakhstan has also ordered producers in large and mid-sized oil fields including Tengiz and Kashagan to cut oil output by around 22% in the May to June period. The cuts, combined with the world's biggest economies relaxing coronavirus restrictions and stoking a gradual recovery in fuel demand, are expected to ease pressure on crude storage capacity. However, in the wake of new outbreaks of the coronavirus, including in China and South Korea, the market is wary of a second wave of COVID-19 cases spurring renewed lockdowns.

    Iraq’s total crude output, including flows from the semiautonomous Kurdish region, remained nearly steady in April as OPEC’s second largest oil producer did not boost production despite expiry of the old OPEC+ oil production cuts in March. Oil production in April was at 4.48 million bpd, compared with 4.5 million bpd in March, even as some of its OPEC allies boosted output to record levels that month. April exports fell to 3.853 million bpd from 3.869 million bpd in March. Iraq took the biggest hit to production for OPEC members in April, losing 110,000 bpd as low fuel demand and a lack of product storage space forced its refineries to severely lower crude runs.

    The Covid-19 pandemic has caused the largest horizontal rig count collapse ever recorded in the US. As per Rystad Energy, the total horizontal oil rig count fell below 270 rigs last week, a 57% decline from the peak of 624 rigs seen in the middle of March 2020. Horizontal gas drilling was down to 70 rigs last week, which is 54% below the previous peak seen in June 2019. The magnitude of the decline in horizontal oil drilling makes this downturn even more unique, compared to the previous downturn of 2015-2016, where declines all the way from the peak to the trough reached around 53% to 54%.

    Meantime, some drillers in the biggest North American oil field are reopening wells shut in response to the pandemic-driven price collapse. Earlier American drillers have disclosed plans to halt more than 600,000 barrels of daily output through the end of next month.  The reopening of wells shut for as little as a few weeks may undermine U.S. President Donald Trump’s pledge to assist a coalition of OPEC and allied oil producers like Russia in taming a global gut. Trump, for his part, indicated U.S. output could be trimmed by 2 million barrels a day, albeit by market attrition rather than government-imposed quotas.

    The American Petroleum Institute (API) estimated on May 12 another large crude oil inventory build, of 7.58 million barrels for the week ending May 8 even as several U.S. states begin the slow process of reopening certain segments of their battered economies. This time inventory build was expected to be just 4.147 million barrels--less than half of the weekly inventory builds we’ve seen over the past few weeks. In the previous week, the API estimated a large build in crude oil inventories of 8.440 million barrels, while the EIA’s estimates were for a significantly smaller build of 4.6 million barrels for that week.

    About 70 laden VLCCs remain stationary for at least 4 weeks. Conditions for floating storage are favourable once again due to a massive imbalance between oil supply and demand. 20 of 70 tankers have international crude on board, 31 are Iranian (NITC) tankers, whilst the remaining VLCCs are involved in products storage, mainly dirty petroleum products around the Singapore area. In addition to these numbers, there are also 15 converted VLCCs (now FSOs) in permanent crude and products storage located around Indonesia and Malaysia.

    The Singapore High Court held on May 12 a hearing over Ocean Tankers’ application (the shipping subsidiary of the financially-troubled Singaporean oil trader Hin Leong)
     to be placed under the management of a court-appointed supervisor. That development follows the disclosure last month that a number of financial institutions had refused to issue new letters of credit to Hin Leong because it could no longer service its debts. As many as 10 financial institutions, including HSBC Holdings, DBS Group Holdings and OCBC Bank, are understood to have a combined exposure to Hin Leong of at least $3 billion.

    We expect global bunker prices may demonstrate slight upward evolution today in a range of plus 3-10 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