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  • MABUX: Bunker market this morning, June 10
  • 2020 June 10 09:29

    MABUX: Bunker market this morning, June 10

    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 insignificant and irregular on Jun.09:

    380 HSFO: USD/MT 284.33 (-2.72)
    VLSFO: USD/MT 329.00 (-1.00)
    MGO: USD/MT 403.13 (+2.25)

    Meantime, world oil indexes moved sideways on Jun.09, weighed down by a stronger dollar and while optimism about recent commitments from major oil producers to curb production offset concerns about a resurgence in coronavirus cases.

    Brent for August settlement increased by $0.38 to $41.18 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for July delivery rose by $0.75 to $38.94 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.24 to WTI. Gasoil for June delivery lost $1.00.

    Today morning global oil indexes have turned into slight downward movement as API report showed a rise in crude and fuel inventories in the United States.

    Morgan Stanley said oil prices have likely risen too fast too soon with the market focusing on supply cuts, while global oil demand may not return to pre-COVID-19 levels before the end of 2021. As per Bank, while the market is heading for deficit in the second half of the year, there are a lot of inventories – at an unusually high level – which will start shrinking in Q4 and in the first quarter next year. Other concerns about an oil price correction include U.S. shale restarting too much production as prices rise, as well as a sharp rise in oil production when OPEC and allies start unwinding the cuts.

    Goldman Sachs in turn predicts, oil prices are likely to pull back in the coming weeks due to the uncertain path of future demand and a "daunting" inventory overhang. Goldman expects Brent prices to reach $35 per barrel in the short term. The Bank raised its 2020 Brent price forecast to $40.40 a barrel from $35.60 earlier, citing positive sentiment around the reopening of economies. WTI prices are now forecast to reach $36 this year, compared with a previous estimate of $33.10. As per Goldman, this rebound has been fueled by a macro risk-on backdrop and a policy induced Chinese crude import binge, yet fundamentals are turning bearish.

    Iraq affirmed full commitment to the OPEC+ production cut deal. OPEC, Russia and other producers agreed on Jun.06 to extend record output cuts of 9.7 million barrels per day into July, curbing global supply by almost 10% amid a steep slump in demand due to the coronavirus pandemic. Iraq said, it is fully committed to cut its production in June and July in compliance with the OPEC+ deal, and also is committed to the production cut deal agreed after June and July.

    It is expected, that a glut of crude oil and products stored in tankers at sea will take months to clear, although a recovery in global energy demand has reduced the volume compared with a peak hit in May. Ship broker Clarksons said 180 vessels with over 200 million barrels of crude were being used for storage globally as of May 29, down from a peak of 290 million barrels in early May. It added 170 tankers were storing 73.8 million barrels of oil products, down from 100 million barrels in early May. IHS Markit put crude floating storage at over 175 million barrels at the end of May versus over 180 million barrels in late April. A further unloading of cargoes on the water will take time as some volume remains under time charter contracts, which can tie traders into leaving their oil at sea for between three to 12 months.

    Oil and gas producers in the Gulf of Mexico are gearing back up after tropical storm Cristobal cleared the area. Oil producers in the Gulf had shut in nearly 35% of all oil production in the area, or 650,000 barrels per day of production as of Sunday. Now, many are readying to bring workers back to shuttered facilities. Some companies who had evacuated workers and/or shut in production ahead of the storm last week were BP, Shell, Occidental, and more. It is unclear how quickly oil producers in the US Gulf of Mexico could bring all its production back online.

    LNG spot prices have been on the slide since April, reaching an all-time low of $1.85 per million British thermal units at the end of May. The reason was the wide gap between supply and demand. As a result, cargos were cancelled, notably from the United States to Asia and Europe, with the number calculated at a minimum of 20 cargos for June and July. This dampened demand then pushed gas flows into LNG export facilities to a 13-year-low. It is possible that some new LNG projects will be delayed by a year or two until prices stabilize.

    Armed individuals entered Libya’s largest oil field, El Sharara, just a day after reports said the field had restarted production after months of idling amid the ongoing civil war. Another force majeure has been declared. The first production phase at Sharara was supposed to begin at a capacity of 30,000 bpd. Libya’s oil production fell from over 1 million bpd to less than 100,000 bpd, with exports shrinking by 92 percent between January and May. The total losses incurred from the blockade and the production outages had reached $5 billion.

    The American Petroleum Institute (API) estimated on Tuesday shocked the oil markets with a large crude build of 8.42 million barrels for the week ending June 5. Forecasts have predicted a small inventory draw of 1.738 million barrels. In the previous week, the API estimated a draw in crude oil inventories of 430,000 barrels. Meanwhile, the EIA’s estimates were for larger draw of 2.1 million barrels. Oil production in the United States has now fallen from 13.1 million bpd on March 13 to 11.2 million bpd for May 29—a drop of 1.9 million bpd—significantly more than OPEC’s production cut agreement from last year and the ninth straight drop for U.S. oil production.

    We expect IFO bunker prices may gain 2-5 USD today while MGO prices may change irregular in a range of plus-minus 3-7 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