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  • MABUX: Bunker Market this morning, Oct 15
  • 2020 October 15 09:31

    MABUX: Bunker Market this morning, Oct 15

    The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

    Oil Market close, Wednesday evening

    Oil rises 2% as OPEC complies with production cuts.

    Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases.

    Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut.

    Wall Street’s main indexes opened higher on Wednesday, supported by heavyweight technology stocks. The dollar traded lower, which can boost oil as investors switch asset classes.

    “Between the dollar, the EIA and the warning from the IEA that may impact future OPEC policy, the tone has turned bullish here,” said Bob Yawger, director of energy futures at Mizuho in New York.

    Data from the U.S. Energy Information Administration (EIA)is expected to show crude oil stockpiles moving lower in the latest week, according to analysts polled by Reuters [EIA/S]

    The American Petroleum Institute said U.S. crude inventories fell more than expected in the latest week, according to a report released after market close on Wednesday. Analysts expect the U.S. Energy Information Administration data to confirm that draw on Thursday, a Reuters poll showed.

    Brent crude futures for December delivery settled up 87 cents, or 2.05%, at $43.32 a barrel. U.S. West Texas Intermediate futures also traded higher, settling up 84 cents, 2.09%, at $41.04 a barrel.

    OPEC+ had 100% compliance with a pact to cut oil supply in September was seen at 102%, two OPEC+ sources told Reuters.

    The Organization of the Petroleum Exporting Countries’ (OPEC) conformity with the oil output reduction in September was 105%, while non-OPEC compliance was 97%, one of the sources said.

    “There is a risk that the demand recovery is stalled by the recent increase in COVID-19 cases in many countries,” the International Energy Agency said on Wednesday.

    OPEC cut its oil demand forecast on Tuesday, citing economic dislocations caused by the virus.

    Russian Energy Minister Alexander Novak said that leading oil producers will start easing output curbs as planned in January despite a spike in coronavirus cases.

    Oil Market today, Thursday morning

    Oil prices edged higher on Thursday, extending their 2% gains from the previous session, after data showed U.S. crude stockpiles fell last week, while OPEC and its allies were seen complying with their pact to curb output in September.

    U.S. West Texas Intermediate (WTI) crude futures climbed 8 cents, or 0.2%, to $41.12 a barrel at 0430 GMT, while Brent crude futures rose 7 cents, or 0.2% to $43.39 a barrel.

    Oil markets climbed for a third day despite a resurgence in COVID-19 infections across Europe potentially denting fuel demand.

    “The energy markets are certainly marching to their own drummer at the moment,” said Michael McCarthy, chief market strategist at CMC Markets and Stockbroking, adding that recent oil price volatility may have attracted more trader positions.

    The American Petroleum Institute industry group said U.S. crude, gasoline and distillate inventories all fell in the week to Oct. 9, according to a report released after market close on Wednesday.

    Crude stockpiles fell by 5.4 million barrels, while distillate stockpiles, which include diesel and heating oil, fell by 3.9 million barrels. Those drawdowns were nearly double analysts’ expectations in a Reuters poll.

    “Much of the fall is due to the effects of Hurricane Delta shuttering U.S. production in the Gulf of Mexico, and as such, will be a transitory effect,” said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.

    “Therefore, I am not getting too excited that a turn of direction is upon markets, although both contracts are approaching important technical resistance regions.”

    Brent may retreat to $42.55 per barrel, after failing to break a resistance at $43.44, Reuters technical analyst Wang Tao said on Thursday.

    The U.S. Energy Information Administration is due to release its weekly data on Thursday, a day later than normal following a public holiday.

    The Organization of the Petroleum Exporting Countries (OPEC) and its allies, together called OPEC+, had 102% compliance with their agreement to cut oil supply in September, two OPEC+ sources told Reuters ahead of a meeting of the OPEC+ technical committee on Thursday to review the oil market.

    ANZ Research pointed to sharp gains in China’s crude oil imports in September and buying by India’s refiners ahead of two big festivals helping support the market.

    Oil Future close 14th October, 2020

    Brent crude:           $ 43.32 (+0.87) /brl                FM delivery Dec (FM=Front Month)

    Light crude (WTI):  $ 41.04 (+0.84) /brl                FM delivery Nov

    Gasoil ARA;            $ 343.00 (+3.75) /mton           FM delivery Nov

    NY Harbor Ulsd:    $ 367.12 (+7.23) /mton           FM delivery Nov

    Oil Futures trading at GMT 05.00; Brent: $+0.07, WTI: $+0.08.

    Fuel Oil prices expected to increase by 5 - 7 usd/mton

    (Fuel Oil, means 380 HS plus VLSFO together).

    MGO and NY Harbor Ulsd expected increase by 4-7 usd/mton.

    Above indications are based on Oil Future close last night 14th October.

    The Oil Market is still trending upward, whether this trend will continue today is difficult to say. Much of the stockpiles fall was due to the effects of Hurricane Delta, which closed many oilrigs. All those rigs are working again and oil price is coming to a resistant level.

    The U.S. Energy Information Administration is due to release its weekly data today.


2021 November 30

18:35 ICS urges WTO Director General to prioritise maritime transport in multilateral trade negotiations
18:14 First phase of Tuas Port reclamation works completes
17:53 Finnlines announces bunker surcharge for Malmö-Travemünde-Malmö
17:35 HDB, JTC and MPA, which issue over two-thirds of government invoices, offer e-invoicing through IMDA’s InvoiceNow
17:04 DNV supports world first large-scale testing of submerged CO2 pipelines
16:48 RF Navy’s large anti-submarine ship Vice Admiral Kulakov enters Barents Sea
16:34 Brittany Ferries takes delivery of Salamanca
16:04 Port of Oakland total cargo volume down 20 percent in October 2021
15:50 RF Navy's corvette Gremyashchy and two submarines of Varshavyanka project welcomed in Vladivostok
15:39 Abbey Heimensen appointed to VP of Marketing, MarineMax
15:34 The Port of Barcelona validates its Innovation Plan
15:19 Icebreaker Sibir of Project 22220 completed main part of shipbuilder’s sea trials
15:04 Terminal San Giorgio orders an eco-efficient Konecranes Gottwald ESP.8 Mobile Harbor Crane
14:43 Keppel Offshore & Marine signs global framework agreement with Ørsted on potential future offshore substation projects
14:24 DEME Group Signs Partnership Agreement with CIP for the Development of Energy Island in Danish North Sea
14:03 Volvo Penta to power Hurtigruten Svalbard’s new hybrid vessel
13:42 Rosterminalugol starts building wind and dust protection screens around its coal storage area
13:24 Kongsberg Digital and Aker BP extends collaboration agreement to accelerate data utilization
12:50 Container shipping costs up by 121.2% year-on-year - Xeneta
12:10 Navigation season closed on rivers of Saint-Petersburg
12:04 Ningbo Containerized Freight Index decrease slightly in November
11:48 1.59 million cbm of material dredged within Azov-Don Basin of Russia’s IWW in 2021
10:56 MABUX: Global bunker market turned into upward correction mode on Nov 30 after yesterday’s price collapse
10:42 China ports container volume rises 8.4% from January to October 2021
10:34 Port of Gdańsk awarded by the European Sea Ports Organisation
09:57 Klaipėda is preparing for the development of offshore wind energy in the Baltic Sea
09:30 Crude oil prices continue rising
09:15 Baltic Dry Index as of November 29
08:33 MAN Energy Solutions upgrades four-stroke engines for green future-fuels

2021 November 29

18:19 Gazprom posts RUB 1.59 trillion of operating profit in 9M’2021
17:58 Wärtsilä partners with China Classification Society and Tianjin Port Group
17:17 Construction of ice protection facilities at Utrenny terminal under Arctic LNG 2 project to be completed in 2022
16:54 Wallenius Wilhelmsen names new CEO
16:50 Lloyd’s Register is the world’s first Renewable Energy Certification Body for marine energy
16:19 Handling of socially important cargo to be obligatory prioritized by operators of sea terminals
15:41 Average spot market price for Russian M100 product rose to RUB 26,672 pmt
15:22 13 million cbm of material to be dredged in 2022 as part of Sabetta seaport’s Seaway Canal reconstruction
14:46 Oboronlogistics delivered cargo to Abkhazia
14:13 X-Press Feeders signs for sixteen new 1,170 TEU vessels
13:34 Alexeev’s Hydrofoil Design Bureau launches yet another Valdai 45R hydrofoil for Chuvashia
13:05 COSCO SHIPPING Ports and CSTD sign JV agreement with Tianjin Port Holdings and China Merchants International Terminals
12:57 DNV publishes pioneering new competence standard and recommended practice
12:47 Baltic Workboats AS developed new standard in commissioning of vessels together with Siemens Energy
12:24 MABUX: Bunker prices may sharply decline on Nov 29
12:08 Small missile ship Veliky Ustyug enters Caspian Sea to perform training and combat missions
11:45 Russian Maritime Register of Shipping issues digest of main changes in RS Rules
11:26 UECC takes delivery of the world’s first dual-fuel LNG battery hybrid PCTC
11:00 Yana Voytsekhovskaya appointed as Editor-in-Chief of IAA PortNews
09:56 Crude oil market sees upward price correction
09:19 Baltic Dry Index as of November 26

2021 November 28

15:17 PGS awarded 4D contract in the North Sea
14:08 Cruises return to the Port of New Orleans with 285 ship calls estimated for 2022
13:54 Kalmar to deliver significant order of Straddle Carriers to MPET and PSA in Antwerp
12:41 Skipper ordered to pay reparation of $10,400 after collision with kayaker on the Whanganui River, NZ
12:17 Port of San Diego extends public review period for Draft EIR for PMPU
11:57 HAROPA PORT elected “Best Green Seaport 2021”
11:33 Contract award for MPSV Siem Dorado
10:48 Port of Dunkerque announces new appointments to its Executive Board

2021 November 27

14:38 Liquid Wind secures SEK 151 million for production of fossil free fuel
13:21 TECO 2030 receives NOK 50 million in government support for fuel cell development