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  • MABUX: Bunker market this morning, May 15
  • 2020 May 15 09:22

    MABUX: Bunker market this morning, May 15

    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 insignificant irregular changes on May 14:

    380 HSFO: USD/MT 229.51 (+0.62)
    VLSFO: USD/MT 260.00 (0.00)
    MGO: USD/MT 328.20 (-0.69)


    Meantime, world oil indexes rose on May 14 after a drop in U.S. crude stocks and an IEA forecast for lower global stockpiles in the second half.

    Brent for July settlement increased by $1.94 to $31.13 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for June delivery rose by $2.27 to $27.56 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.57 to WTI. Gasoil for June delivery gained $10.00.

    Today morning global oil indexes continue slight upward evolution.

    Crude oil traders expect the market to be closer to balance in the next few months as production cuts are implemented and the global transport system emerges from a coronavirus lockdown. Futures prices and swaps linked to physical prices show the market has now moved through the worst of the crisis caused by the volume war between Saudi Arabia and Russia and the pandemic-driven collapse in consumption. By the middle of last month, global production was exceeding consumption by as much as 30 million barrels per day (bpd), causing the volume of oil in storage to surge. The main risk comes from a premature increase in production, if either U.S. shale firms or members of OPEC+ try to boost output before consumption and stocks return closer to normal.

    The International Energy Agency (IEA) said, oil producers may need to exert more efforts to lessen the coronavirus impact on the oil market because demand is not expected to recover quickly, given the amount of surplus and large volume of crude held in floating storage. The IEA boosted its estimates for global oil demand in the second quarter by 3.2 million barrels a day, to 79.3 million. Yet consumption remains on track for a loss of almost 20 million barrels a day in the quarter, or roughly 20%, from the same period in 2019 due to the pandemic. For 2020 as a whole, the demand forecast was pushed up by 700,000 barrels a day, but it still remains on track for an annual plunge of 8.6 million a day, or about 9%. The IEA also expects crude stockpiles to shrink by around 5.5 million barrels per day in the second half.
    The US, Saudi Arabia and Russia are going to continue to be major producers and China, India and Middle East to be major demand centers for oil growth.

    Goldman Sachs in turn expects, improving global oil demand and faster-than-expected production curtailments from outside the OPEC+ pact are set to push the oil market into deficit next month. The investment bank said, that there is still little room for an oil price rally in the near term because of the still sizeable oversupply of crude oil and refined products. At the same time, demand is improving from April lows and is limiting the downside for oil prices. The bank kept its forecasts for oil prices for the summer, with Brent Crude seen at $30 a barrel, and WTI Crude at $28 per barrel, due to the still uncertain pace of global demand recovery.

    Saudi Arabia stood by its pledge to curtail oil output under the OPEC+ deal, reducing shipments to the prized Asian market. Saudi Aramco cut contractual volumes for June loading to at least seven Asian customers. Three other regional buyers received what they asked for. The reductions were expected as Saudi Arabia announced a few days ago that it would cut production by a further 1 million barrels a day on top of what it had already committed to under the OPEC+ agreement. It also followed a move by fellow OPEC member Iraq to curb supplies to Asia.

    Meantime, Iraq has agreed with oil majors operating its five giant southern oilfields to cut 300,000 bpd. It will also lower production from other fields which it operates alone, bringing the total reductions to slightly below 700,000 bpd. The country’s oil output cut target under the OPEC+ supply reduction pact is 1.06 million bpd for May and June. The agreement with the oil majors came after what Iraqi officials described as “a defensive position” by the international oil companies developing Iraq’s southern fields. The refusal by the oil majors to cut more oil indicates the difficulties which are facing Iraq to fully comply with the OPEC+ crude supply reduction pact.

    U.S. oil production continues to decline as drillers shut in wells and cut back spending. Output has already declined by 1.1 million barrels per day (bpd), and more losses are likely. New data from Rystad Energy predicts U.S. oil production declines of roughly 2 million bpd by the end of June. The sharp decline in rigs, drilling and completion activity means that the steep decline rates in shale drilling will overwhelm what little new production comes online. Standard Chartered said that if activity were to remain stuck at current levels, U.S. production in the five main shale basins would fall by 2.89 million bpd by the end of 2020.

    We expect global bunker prices may rise today in a range of plus 10-18 USD.




2021 October 20

12:52 Japanese company Kubota chooses port of Rotterdam for Northern European distribution
12:39 Crowley participates in Saildrone Inc’s $100M Series C round to advance ocean intelligence products
12:02 Global Ports terminal In Helsinki increases number of container services
11:54 Port Houston container volumes up 11% to 281,500 TEUs in September 2021
11:40 Sibanthracite Group acknowledged as best supplier of coal to China for second consecutive year
11:16 MPA and DMU signed MoU to drive talent and academic exchange in the maritime sector
10:51 Mitsubishi Shipbuilding successfully separates and captures CO2 from exhaust gas in world’s first marine-based CO2 capture system project
10:28 Modernization of border checkpoint completed in Kavkaz seaport
10:06 RF President gives instructions on permanent environmental monitoring in areas of handling dry bulk cargo and cargo emitting dust
09:45 MABUX: No firm price trend on Bunker market on Oct 20
09:35 Crude oil prices decrease on US reserves growth
09:19 Baltic Dry Index as of October 19

2021 October 19

18:24 Ocean Yield ASA sells two LR2 tankers
17:44 Klaveness Combination Carriers sells a 21-years old CABU vessel
17:22 Oboronlogistics delivers cargo for the construction of a cultural cluster in Kaliningrad
16:58 North Sea Port, Zeeland Regional Safety Board and Central Fire Response Zone join forces for cross-border incident response in the port area
16:35 European shipowners support the uptake of clean fuels but fear FuelEU may become missed opportunity due to enforcement loopholes - ECSA
16:20 9M’2020 throughput of Taganrog Sea Commercial Port grew by 6% Y-o-Y
16:05 Fuelling the Industry: LNG as a fuel and its infrastructure at the 8th International Congress
16:04 Empire Offshore Wind selects Vestas as its preferred supplier for wind turbine generators for Empire Wind I and Empire Wind II
15:41 The decarbonization strategy likely is now the best business strategy for shipowners - ABS
15:13 Bollinger celebrates commissioning of 45th Fast Response Cutter USCGC Emlen Tunnel
14:51 RF Government and Rosatom instructed to organize regular transportation of transit cargo by NSR
14:30 Port of Rotterdam throughput rises substantially again in Q3 2021
14:03 Valenciaport throughput up 8.33% to 63.46 mln tonnes in Jan-Sept 2021
14:02 Ice restrictions in Port of Sabetta basin to be effective as of Oct 25
13:39 TGE Marine announces the successful gas trail of LNG bunker vessel ´Dmitry Mendeleev´
13:08 Port of Antwerp throughput up by 4.8% to 179.1% mln tonnes in Jan-Sept 2021
12:54 Cargo traffic via Khabarovsk Territory ports rose by 3% in 9M’21
12:33 Vitol’s V-Bunkers receives green ship awards from Maritime Port Authority of Singapore
12:15 The Methanol Institute welcomes the European Union’s package of proposals Fit for 55
11:36 Volga Shipping announces completion of three tankers conversion project
10:46 MABUX: Bunker prices may demonstrate multidirectional changes on Oct 19
10:11 Russian Gas Society supports 5th LNG Fleet, LNG Bunkering and Alternatives conference
10:09 Berenberg expands debt fund portfolio with two new multi-investor funds
09:46 Baltic Dry Index as of October 18
09:25 Crude oil prices rise on crisis anticipation
09:13 Roxtec selects Sustainable Marine Fuels

2021 October 18

18:07 OneOcean Group brings voyage optimisation solutions to Marlink Partner Programme
17:53 NOVATEK held its first Arctic LNG Projects Shipowners Conference
17:49 MOL tabletop drill prepares for serious marine accident
17:29 Over 40 ships and boats of RF Navy's Black Sea Fleet took part in large-scale exercise at Opuk training ground in Crimea
16:52 Icebreaker Kapitan Khlebnikov to help deliver new components for the Vostok Station in the Antarctic
16:16 Throughput of Russian seaports in 9M’2021 climbed by 1.7% (detalization)
15:48 Four industry focused educational institutions to take part in 5th LNG Fleet, LNG Bunkering and Alternatives conference
15:25 Baltiysky Zavod shipyard casts forth one-piece propeller for Project MR-50 product tanker
15:03 Nemport orders fleet of Konecranes Noell RTGs
14:13 Average spot market price for Russian M100 product rose to RUB 29,186 pmt
13:51 MOL, MAN ES and MES-M sign MoU aiming to order ammonia fueled main engine for ships
13:42 National Chamber of Engineers supports 5th LNG Fleet, LNG Bunkering and Alternatives conference as its Media Partner
13:00 Port of Ventspils throughput in January-September 2021 fell by 14% YoY
12:40 The Port of València will install a hydrogen supply station in January
12:36 Port of Helsinki throughput in January-September 2021 rose by 7.9% YoY
12:14 Port of HaminaKotka cargo turnover in 9M’2021 fell by 2.1%
11:29 Container throughput of Hong Kong port (China) in January-September 2021 rose by 0.1%
10:57 APM Terminals appoints new Head of Decarbonisation
10:48 Port of Liepaja throughput in 9M’2021 climbed by 8% Y-o-Y
10:25 Global Ports’ Consolidated Marine Container Throughput increased by 4.0% y-o-y in 9m 2021
09:53 MABUX: Bunker prices may rise on Oct 18
09:46 Northern Sea Route cargo traffic rose by 4.5%