• 2020 August 10 08:58

    MABUX: Bunker market this morning, Aug10

    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 Aug.07:

    380 HSFO: USD/MT 305.87 (+0.22)
    VLSFO: USD/MT 363.00 (0.00)
    MGO: USD/MT 441.44  (-2.44)


    Meantime, world oil indexes decreased on Aug.07 on worries that fuel demand growth will drop amid a resurgence of coronavirus cases and as talks have stalled in the United States on a new stimulus deal.

    Brent for October settlement decreased by $0.69 to $44.40 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for September delivery fell by $0.73 to $41.22 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.18 to WTI. Gasoil for August delivery lost $5.50 – $369.00.

    This morning, global oil indexes have turned into slight upward evolution.

    The resurgence of infections remains a key issue for the market and demand outlook. Tallies show cases in the United States are rising in a number of states. India reported on Aug.07 a record daily jump in infections.

    OPEC oil output rose by over 1 million barrels per day (bpd) in July as Saudi Arabia and other Gulf members ended their voluntary extra curbs on top of the OPEC-led deal, and other members made limited progress on compliance. Saudi Arabia had agreed to cut output by 2.5 million bpd under the OPEC+ deal. Iraq agreed to cut output by 1.06 million bpd under the deal. It is expected that the country will make an additional cut in its oil production of about 400,000 barrels per day in August to compensate for its overproduction over the past period under the OPEC+ supply reduction pact.

    The U.S. sent in June its first crude oil shipment to Saudi Arabia (550,000 barrels) since the ban on crude export was lifted in 2015, which was also the first shipment since one very small shipment back in 2002. The cargo to Saudi Arabia in June may have been part of a bigger shipment headed for another export destination. Saudi Arabia, for its part, has been one of the largest suppliers of crude oil to the United States, and the third-largest supplier of petroleum in 2019 behind Canada and Mexico.

    U.S. shale drillers are still not ready to return to their default state of perpetual growth. Oil is too cheap for that, so they are staying in survival mode, maintaining production with no plans to start boosting it anytime soon. Layoffs, capex cuts, and bankruptcies are on the agenda now, at least until WTI rises to at minimum $50, according to some industry executives who see that price level as high enough to restart drilling new wells. Even then, however, efforts will focus on development, that is, exploiting already proven reserves, while spending on new exploration, meaning, a substantial increase in new production, will have to wait. This reality may force a rethinking of the whole shale business model.

    It is expected that demand for offshore rigs will slump this year as a result of the pandemic and the low oil prices that are forcing offshore operators to delay drilling activities, but the offshore rig industry is set for a comeback in 2022. The drillship market should expect pent-up demand in 2022, with demand rising from this year’s levels through 2021 and 2022. Global demand for drillships is forecast to average 73 units over 2022, up from 66 units for 2021 and 59 units through 2020. Most of the drillship demand will be concentrated in South America and West Africa. In South America, Brazil will be a major hotspot for drillship demand in 2022, alongside Guyana and Suriname. Drillship demand in the U.S. Gulf of Mexico, however, is expected to see demand next year down from 17 to 14 units, as some operators wait a bit longer for market conditions to stabilize before awarding new work.

    The world’s consumption of natural gas is set to decline by 4 percent this year, but global demand will return to growth after the pandemic, thanks to low natural gas prices and stricter environmental policies. The Global Gas Report 2020 says that the trend of increased natural gas demand due to environmental concerns, which was already underway before the pandemic, will continue after COVID-19 is under control.  The International Energy Agency (IEA) also sees global natural gas demand dropping by 4 percent in 2020, which would be the largest demand shock for gas markets in recorded history, with consumption of natural gas expected to drop by twice the amount it did after the 2008 financial crisis. Meantime, Global LNG imports could return to their 2019 level quickly, as soon as in 2021, depending on the persistence and longevity of the pandemic.

    The combined oil and gas rig count in the U.S. fell last week by 4, to 247. The total oil and gas rigs are down by 687 compared to this time last year. The number of oil rigs slipped for the week by 4 rigs, bringing the total to 176, compared to the 764 active oil rigs this time last year.  Two of those four rigs lost this week were in the Permian Basin. Meantime, the EIA’s estimate for oil production in the United States fell for the week ending July 31—the last week for which there is data, at 11 million barrels of oil per day. Oil production in the United States is 2.1 million bpd less than its all-time high reached earlier this year.

    We expect IFO bunker prices may go downward by 3-5 USD today, while MGO prices – to lose 5-9 USD.




2020 September 28

18:57 Okeanis Eco Tankers announces one year VLCC time charter
18:27 Bumi Armada secures third FPSO project in India
18:07 Wilhelmsen and thyssenkrupp step-up collaboration, establishing 3D printing joint venture targeting the maritime industry
17:59 RF Government to allocate RUB 27.6 billion for construction of two scientific research ships
17:28 Port of Long Beach announces closure of traffic routes leading to the Gerald Desmond Bridge
17:05 Maersk Supply Service and Ørsted to test offshore charging buoy to reduce vessel emissions
17:02 Oboronlogistics completed Northern Delivery programme of 2020
16:56 UTLC ERA JLC and Belintertrans-Germany GmbH open joint end-to-end regular multimodal service from China to Western Europe
16:37 Atommash shipped Reactor Pressure Vessel for Turkey's first nuclear power plant
16:14 The digital transformation is accelerating, and insurers and underwriters must adapt, says IUMI
15:51 Ships of RF Navy's Black Sea Fleet returned to their permanent locations after "Kavkaz-2020" maneuvers
15:29 New railway bridge over Kolar river put into operation in Murmansk Region
15:13 BIMCO to push for international guidelines for ship/shore communication at IMO
14:12 Submersible robot buries power cables for offshore wind farms 5.5 metres below seabed to the north of Maasvlakte
13:53 Moscow Exchange registered debut bond issue by FSUE "Rosmorport"
13:30 Blanket repair begins at Beloomut dam’s second section
13:12 Busan Port Authority concludes an agreement to establish a smart maintenance system for port facility
12:54 Average spot market price for Russian M100 product fell to RUB 11,773 pmt
12:11 Abu Dhabi Ports acquires MICCO to become a leading provider of fully integrated supply chain logistics solutions
11:36 RF Government approves National Programme for Far East Development
11:13 Aker Solutions awarded subsea contract for Breidablikk
10:51 Hornsea Two monopile installation scheduled to start next month
10:21 Shipbuilding, Ship Repair Corporation launches non-self-propelled suction hopper dredger of Project 4395
09:52 Tallink suspends operation of Helsinki-Riga route until end of October
09:30 Tallink changes weekend operating schedule of Tallinn-Helsinki route shuttle vessel Star
09:14 Baltic Dry Index as of September 25
08:48 MABUX: Bunker market this morning, Sept 28

2020 September 27

16:43 Milaha signs key deal with major oilfield services firm
15:31 RINA and SDARI: an innovative step towards 3D ship classification
14:28 Belfast Harbour is hosting an innovative study which could help change the way ports and harbours manage air quality
13:48 ABP invests £10 million to repair Swansea West Pier
12:49 Huntington Ingalls Industries restores drinking water, conducts steam testing during USS George Washington (CVN 73) refueling and complex overhaul
12:03 The Manor Endurance sets sail for her first charter
11:29 NYK and JMU introduce shipbuilding contract that guarantees propulsion in actual sea conditions

2020 September 26

15:52 Port Freeport enters partnership with CEMEX Servicios Logisticos and Union Pacific Railroad
14:32 Coast Guard rescue two mariners from disabled catamaran near Oahu
13:43 NAT orders two -2- Suezmax newbuildings in South Korea
12:38 JAXPORT CEO Green named one of Florida’s top business leaders for third year in a row
12:06 Northwest to Midwest: New rail service builds on NWSA’s intermodal growth
11:02 IUMI: Loss prevention remains a vital element in ensuring the insurability of maritime risk
10:53 Huntington Ingalls Industries breaks ground on unmanned systems center of excellence

2020 September 25

18:07 Tripartite agreement signed on establishing the FSRU terminal in the Bay of Gdansk
17:55 Baltic Fuel Company shipped first batch of bitumen
17:39 Scorpio Bulkers announces purchase of shares by Scorpio Services
17:34 Vessel “Razul Rza” sent to outer waters after the repair works
17:12 Metal Shark debuts 48-meter catamaran expedition vessel and introduces "Metal Shark Yachts" portfolio
16:51 Ningbo Containerized Freight Index rises significantly in September
16:19 OOCL's service update for Trans-Pacific trade
16:16 Representative office of Marinet opened in China
15:27 GTT signs a contract with the U.S. Dep't of Defense for the Red Hill Bulk Fuel Storage Facility
14:59 RFC held the second stage of the ecological marathon
14:31 Bunker prices are flat in the Port of Saint-Petersburg, Russia (graph)
14:05 Zvezda shipyard to build 10 gas tankers for Arctic LNG 2
13:42 Wärtsilä solutions meet challenging needs of Canadian Coast Guard vessel
13:18 Nuclear-powered container carrier Sevmorput delivered Kamchatka fish to Saint-Petersburg
12:56 Competition for construction of two scientific research ships for Russian Federal Fisheries Agency to be announced in October
12:34 Royal Niestern Sander orders SCHOTTEL thrusters for world’s first shallow-draught ice-breaking W2W vessel
12:11 VEB.RF starts financing construction of ten gas tankers for Arctic LNG 2 project
11:29 LR awards Samsung Heavy Industries AiP for its ammonia-fuelled tanker
10:37 British Ports Association sets out spending review priorities