• 2020 June 22 09:35

    MABUX: Bunker market this morning, June 22

    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) rose slightly on Jun.19:

    380 HSFO - USD/MT - 286.19 (+3.70)

    VLSFO - USD/MT – 342.00 (+5.00)

    MGO - USD/MT – 420.38 (+9.14)

    Meantime, world oil indexes rose on Jun.19, after OPEC producers and allies promised to meet supply cuts and on signs of demand.

    Brent for August settlement increased by $0.68 to $42.19 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for July delivery rose by $0.91 to $39.75 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.44 to WTI. Gasoil for July delivery gained $10.75 – $364.50.

    Today morning global oil indexes have turned into the phase of slight downward movement.

    OPEC+ emerged from its Joint Ministerial Monitoring Committee (JMMC) on Jun.18 confident that all members would reach their respective production quotas as laid out in the Declaration of Cooperation. The JMMC highlighted the 87% compliance rate to those production cuts that were originally supposed to last through the end of this month, but the group agreed to extend the cuts into July on one condition—all members fully comply with their cuts. Iraq and Kazakhstan pledged to comply better with oil cut.

    The world’s biggest oil-producing company, Aramco, has started laying off hundreds of employees—mostly foreign staff—across several divisions in response to the oil price crash. Aramco, which employs nearly 80,000 people, annually revises down its staffing, but this year’s job cuts are larger than before. Saudi Aramco’s first-quarter net income dropped to US$16.66 billion from net earnings of US$22.2 billion for Q1 2019 due to the coronavirus pandemic and the oil price crash that Saudi Arabia itself helped to worsen with the oil price war in March.

    Meantime, nearly 85,000 people in the U.S. oilfield services industry have lost their jobs due to the pandemic-driven oil price crash and demand destruction. Compared to employment figures in May 2019, oilfield services employment is down by 105,000 jobs, and is now at its lowest point since 2016. Employment in the oilfield services and equipment (OFS) sector declined by 13.5 percent from 785,106 jobs in May 2019 to 679,281 jobs in May 2020. Many oilfield companies have up to half their workforce currently on furlough, while some of the largest companies in the sector expect to lay off thousands in the near future.

    The number of oil and gas rigs in the US fell again last week, by 13, to 266, suggesting that the slide in the number of active rigs is not yet over. The total oil and gas rigs is now sitting at 701 fewer than this time last year. The number of active rigs in the United States has continued to decline over the last fifteen weeks. The number of oil rigs decreased for the week by 10 rigs, bringing the total to 189—compared to 789 active rigs this time last year. 

    The significant fall in the rig count over the last couple of months is also reflected in the steady decline of EIA’s estimate for oil production in the United States, which fell again last week to 10.5 million barrels of oil per day on average for week ending June 12, which is 2.6 million bpd off the all-time high and a staggering 600,000 bpd lower than the week prior. It is the eleventh straight weekly production decline.

    China's crude oil imports jumped to a record high in May, while refinery throughput increased to near-peak levels, suggesting a strong recovery in oil demand after the coronavirus outbreak. At the same time, rebound may be softer than what headline figures suggest because China stepped up its crude oil stockpiling this year and boosted exports of refined oil products. Last month, China imported a record-high 11.34 million bpd of crude oil. While part of the record imports was driven by economic activity picking up, the other driver was April's eager oil prices, which incentivized China's crude oil stockpiling in strategic and commercial inventories.

    China last year replaced the United States as the number-one importer of oil from Venezuela. Despite sanctions imposed by the U.S., China never stopped buying, instead using intermediaries such as subsidiaries of Russia’s Rosneft and a roundabout delivery method that made it seem as if the oils’ origin was Malaysia. Between July 1 and Dec. 31, vessels delivered at least 18 shipments of 19.7 million barrels of rebranded Venezuelan crude to Chinese ports. Those 18 shipments amounted to more than 5 percent of Venezuela’s total exports last year.

    Goldman Sachs reported, global investment in renewable energy is set to surpass oil and gas for the first time ever next year. As soon as 2021, renewable energy will capture more investment than oil and gas, and renewables could see $16 trillion in investment through 2030. That would keep the world on track to avoid more than 2 degrees Celsius of warming, although regulatory and policy changes are still necessary for this scenario to play out. Goldman also says that a wave of clean tech investment “has a major role to play in the upcoming economic recovery,” noting that green infrastructure is 1.5 to 3 times more capital- and job-intensive than fossil fuels.

    We expect IFO bunker prices may rise by 3-5 USD today, VLSFO – add 5-7 USD, while MGO prices may gain 5-10 USD.


2021 June 14

17:46 Fincantieri and MSC celebrate the start of construction of “Explora I”,
15:52 ABS and 22 industry players to study ammonia as an alternative marine fuel
15:18 ICS Guidance for Ship Operators and Roadmap for vaccination of seafarers
14:09 Bollinger submits proposal for U.S. Coast Guard Heritage-class offshore patrol cutter
13:19 Genco to jointly study ammonia as an alternative marine fuel
12:31 Wärtsilä brings Power-to-X technology to World Expo
11:57 Trafigura joins cross industry study into the adoption of green ammonia as an alternative marine fuel
11:24 DFDS: Freight up 31% following lockdowns in 2020
10:32 SEACOR Marine announces debt payoff agreement
09:47 Kick off “Joint Study” framework for studying ammonia as an alternative marine fuel
09:13 MABUX: bunker indexes may change irregularly on June 14

2021 June 13

15:31 Petrobras signs contract for the supply of eighth Búzios unit
14:18 Lyon Shipyard to invest $24.4 million to expand its operation in the City of Norfolk
13:29 Shearwater GeoServices recycles Western Trident as part of its fleet renewal strategy
12:41 MCA to carry out unannounced inspections of fishing vessels
11:42 The 126-passenger expedition cruise vessel National Geographic Resolution hits the water
10:56 Saipem: Inauguration of Saipem Guyana offshore construction facility in Georgetown

2021 June 12

16:09 Fred. Olsen Cruise Lines unveils brand new sailings aboard new ships Bolette and Borealis in 2022
14:21 "Blowdown" to reduce risk and raise decommissioning progress
13:42 Roambee announces a strategic investment from and partnership with PSA unboXed
13:19 Belfast Harbour awards £25,000 to community projects
12:41 Maurice GEORGES named as new Chair of the Executive Board of Dunkerque-Port
11:38 AIDA Cruises resumes holiday voyages from July 29, 2021
10:52 OptiLink: A digital revolution in ballast water management

2021 June 11

18:07 LNG consumption as a marine fuel has almost doubled in 2020
17:31 Hapag-Lloyd to provide full transparency on vessel arrivals
17:09 MOL joins international think tank and accelerate development for carbon capture, utilization and storage
16:58 GTT obtains tank design order for two new LNG carriers from Samsung Heavy Industries
16:52 Shipping industry welcomes Nigeria’s creation of ‘Deep Blue’ to stamp out piracy in the Gulf of Guinea
16:24 Stena Line will move its Europoort-Killingholme service to Immingham
16:00 Yantar shipyard to build rescue ship of Project MPSV06M for Marine Recue Service
15:36 Sea Port of Saint-Petersburg hosts introductory practical training for students
15:13 The Port of Rotterdam Authority, Customs, Fresh Produce Centre and Portbase join forces to facilitate the growth market of refrigerated products
14:25 Seanergy takes delivery of two Capesize vessels with prompt commencement of period charters
13:51 Total throughput at the ports of Bremen increases once again during Q1 4 June 2021
13:32 Roman Gorgutsa appointed as General Director of Morstroytechnology
13:28 Mitsui E&S Machinery and 22 industry players kick off studying ammonia as an alternative marine fuel
13:04 MOL and ACSL use flying drone to conduct autonomous inspection of vessel holds under non GNSS and dark environment
12:49 Port of Los Angeles becames the first port in the Western Hemisphere to process 10 million container units in a 12‑month period
12:38 Oboronlogistics receives RS certificate on safety management of cargo ship Sparta
12:14 CNES and CMA CGM sign unique partnership agreement to spawn innovative solutions for shipping, logistics and the space industry
12:01 APM Terminals continues roll-out of digital export processing at Russian terminals
11:57 Russian Railways: Loading of export cargo bound for domestic ports grew by 8% in 5M’21
11:34 RS and GTT sign new cooperation agreement
11:33 Xeneta selects CLIVE Data Services’ ‘dynamic loadfactor’ data and analyses to deliver complete air cargo market intelligence
11:11 Stagnation in R&D investment creating unacceptable risk for industry zero emissions future - ICS
10:50 Throughput of port Riga (Latvia) in 5M’2021 dropped by 15.1%
10:29 Rosneft agrees heads of terms to sell a stake in the Vostok Oil Project to a consortium of Vitol and Mercantile & Maritime
10:08 DRAX and Mitsubishi Heavy Industries sign pioneering deal towards delivery of the world’s largest negative emissions project
09:52 Throughput of Russian seaports in 5M’2021 fell by 2.7% Y-o-Y
09:40 Oil prices continue decreasing
09:23 Baltic Dry Index as of June 10
09:16 MABUX: Global bunker prices may rise slightly on June 11.
09:04 The port of Rotterdam Authority intends to build brand new port information centre
08:02 Rolls-Royce to showcase future South Korean naval power and propulsion

2021 June 10

18:45 Equinor sells its refining business in Denmark to Klesch
18:25 Rolls-Royce builds new fuel cell demonstrator to ensure electricity supplies
18:05 DNV predicts that marine finfish production in deeper waters offshore will take a 13% market share in 2050
18:00 Comprehensive programme on development of Yamal resource potential to be developed by October 2021
17:51 Contract awards for PSVs in UK