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  • MABUX: Bunker market this morning, Aug 28
  • 2020 August 28 08:58

    MABUX: Bunker market this morning, Aug 28

    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 Aug.27:

    380 HSFO: USD/MT 315.50 (+2.23)
    VLSFO: USD/MT 366.00 (0.00)
    MGO: USD/MT 444.32 (+1.34)


    Meantime, world oil indexes fell on Aug.27 as a massive hurricane in the Gulf of Mexico made landfall in the centre of the U.S. oil industry, forcing oil rigs and refineries to shut down.

    Brent for October settlement decreased by $0.55 to $45.09 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for October delivery fell by $0.35 to $43.04 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.05 to WTI. Gasoil for September delivery lost $8.50 – $362.50.

    This morning, global oil indexes do not have any firm trend so far and change irregular.

    Hurricane Laura hit Louisiana on Aug., damaging buildings, knocking down trees and cutting power to more than 400,000 people in Louisiana and Texas. Its storm surge was less than predicted, sparing inland plants from feared flooding. Oil producers had shut 1.56 million barrels per day (bpd) of crude output, or 84% of the Gulf of Mexico’s production, evacuating 310 offshore facilities. At the same time, refiners that convert nearly 2.33 million bpd of crude oil into fuel, and account for about 12% of U.S. processing, halted operations.

    The growth in global oil demand is expected to taper off, with global crude oil demand plateauing just below pre-pandemic levels. According to IHS Markit, global oil demand, currently at 89% of pre-Covid-19 levels and rising, is expected to level off at between 92% to 95% of demand prior to the pandemic. Therefore, IHS Markit expects demand growth to wane and plateau through the first quarter of 2021, with the main cause for the pause expected to be travel – especially that of air and commuting to work – remaining subdued until the spread of Covid-19 is contained and until vaccines are widely available.

    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 4.7 million barrels from the previous week. At 507.8 million barrels, U.S. crude oil inventories are about 15% above the five-year average for this time of year. Forecasts had expected an inventory draw of 3.833 million barrels for the week to August 21. Refineries processed 14.7 million bpd of crude last week, after run rates fell to 14.5 million bpd during the previous week. This week the numbers would likely be even lower as hurricane Laura forced the shutdown of several facilities on the Gulf Coast.

    The U.S. Administration’s push to reduce Iraq’s dependence on energy imports from Iran—including electricity and natural gas—could see rapprochement and closer energy cooperation between Iraq, the only Arab country in the Gulf region that is not a member of the Gulf Cooperation Council (GCC), and Iran’s archrival in the region and a key U.S. ally, Saudi Arabia.  Iraq agreed last week to work, with help from the United States, on connecting Iraq’s electricity grid to Saudi Arabia’s, and possibly Kuwait’s. At the moment major Iraqi power plants are dependent on Iranian natural gas supply, and Iraq also imports electricity from Iran, as Baghdad’s power generation is not enough to ensure domestic supply.  

    Four oil tankers have been stripped of their flags following an NBC News investigation into allegations they secretly transported Iranian oil in defiance of crippling U.S. sanctions imposed by President Donald Trump. The four ships all made covert visits to Iranian waters this year where they collectively picked up millions of barrels of oil. Five days after the report was broadcast, the St. Kitts & Nevis Ship Registry decided it would no longer allow the tankers to fly under its flag.  Under maritime law, seagoing ships must fly the flag of a nation state. Vessels that have been stripped of their flag are unable to carry out basic functions like sailing into port or registering for maritime insurance.

    The pandemic-led weak projections for economic growth will derail US LNG exports in full-year 2020 with the country also losing ground in the long term due to major delays in liquefaction projects. The US is currently the third-largest global LNG exporter with six operational LNG export terminals aggregating 62 mtpa of liquefaction capacity and another 41 mtpa capacity under construction. Existing LNG production capacity in the US has been impacted by the pandemic with over 110 LNG cargoes being cancelled by Asian and European customers during June-August due to the low LNG spot price which narrowed the US-Asia and US-Europe price arbitrage. Moreover, major US LNG importers – Japan, South Korea and Taiwan – have seen their LNG demand dwindling, while US-China LNG trade has not been able to pick up as some would have hoped.

    We expect IFO bunker prices may go downward today by 1-3 USD, MGO prices may fall by 7-10 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