• 2018 June 14 13:47

    Global fuel market is waiting for some clarity from the Vienna meeting next week, expert says

    The Bunker Review is contributed by Marine Bunker Exchange

    World oil indexes have had irregular changes with no firm trend during the week. Fuel market is looking into the global supply and demand picture to guess where the prices of oil and fuel are heading. Some are focusing on the loss of supply from Venezuela and a potential reduction of Iranian exports to justify the view that prices will be heading higher. Others are figuring that OPEC will reverse some of the production cuts in place and bring back as much as 1 million bpd to the market to offset any supply disruptions.

    MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO at the main world hubs) added some points in the period of Jun.07 – June 14, but it is still too early to talk about any firm trend:
        
    380 HSFO - up from 427.79 to 429,86 USD/MT (+2.07)
    180 HSFO - up from 469.00 to 471,79 USD/MT (+2.79)
    MGO        - up from 669.57 to 678.71 USD/MT (+9.14)

    The markets shrugged at the historic meeting between President Trump and North Korean dicta-tor Kim Jong Un. Both sides hailed the summit as a breakthrough, with a pledge towards denuclearization, but as expected, there was a lack of even the most basic details on how they might get there. According to a report by the Korean Central News Agency (KCNA), Trump expressed his intention to halt U.S.-South Korea joint military exercises, offer security guarantees to the North and lift sanctions against it as relations improve. However, it seems that the summit had yielded only symbolic results and nothing essential.

    OPEC’s efforts to erase the oil glut and lift oil prices paid off as the cartel reaped higher revenues from crude oil exports in 2017. But the rewards from the cuts were not evenly split among the cartel’s members. The biggest percentage gain in the value of petroleum exports was recorded in Libya (up 61 percent on the year to US$15 billion). The second was Qatar (up 55 percent to US$35.5 billion) and The United Arab Emirates (UAE) was the third. The higher oil prices also helped most of the OPEC members (in particular Saudi Arabia, Libya, Venezuela, and Qatar) to improve their current account balances last year.

    Meantime, OPEC emphasized the deep uncertainty over the strength of demand for its oil just a week before contentious talks on whether to raise production. There’s a wide forecast range for how much crude the OPEC needs to pump in the second half of the year. With a range of 1.7 million barrels a day between the upper and lower estimates, demand could either be significantly higher, or slightly below, than OPEC’s current output.

    Besides, opposition to an increase in the OPEC/non-OPEC production limits continues to grow, with Iraq coming out against such a move. OPEC’s second largest producer said that the production cuts have not yet achieved the intended objective of balancing the oil market. The statement of opposition comes after Iran and Venezuela also called upon the group to keep the limits in place.

    The U.S. reportedly asked Saudi Arabia for higher oil production to offset Iranian outages, a request that was made before the U.S. withdrawal from the Iran nuclear deal. The apparent sudden shift in the Saudi position shortly after the conversation has annoyed a lot of OPEC members.  The comments raise the possibility of a contentious meeting in Vienna.

    Venezuela has begun testing seaborne oil transfers to ease a severe backlog of crude deliveries from its main terminals, as delays and production declines could temporarily halt state-run PDVSA’s supply contracts if they are not cleared soon. The delivery method entails specialized equipment and training and higher costs for ship owners and customers. Tankers waiting to load more than 24 million barrels of crude. Venezuela’s crude exports fell 6 percent in May to 1.168 million bpd while Venezuela’s crude exports in the first five months of 2018 were 27 percent lower than in the same period of 2017.

    Meantime, Russia’s oil production (the world’s biggest) had risen to 11.1 million bpd in early June, up from slightly below 11 million bpd in most of May and well above its target production of under 11 million bpd as part of the deal.

    The European Union has vowed to maintain the Iran nuclear deal despite the U.S. decision to exit, and Brussels has pushed back against Washington’s attempts to penalize European companies from doing business with Iran. However, some European companies have already begun cutting business ties with the Islamic Republic. Iran in turn said that it would ramp up work on its nuclear program if the EU is unable to offer enough security to ensure European companies can continue to operate in Iran.

    The estimates for how much Iranian oil U.S. sanctions will impact ranges. But the mass flight of top American and European companies, and the early signs of a significant decline in purchases from refiners around the world, plus the difficulty in finding shipping and insurance, all suggests that the supply disruptions could potentially be at the higher end.

    The number of new rigs drilling for oil in the United States rose by one last week to 862, its highest since March 2015. That suggests that U.S. crude output, already at a record high of 10.9 million barrels per day will climb further, which will continue to put downward pressure on fuel prices.

    China’s May crude oil imports eased away from a record high hit the month before. May shipments were 39.05 million tonnes, or 9.2 million barrels per day (bpd). That compared with 9.6 million bpd in April.

    We expect that bunker prices will likely change irregular over the next week until the fuel market gets some clarity from the Vienna meeting.

     

     

     

     

     

     

     

    All prices stated in USD / Mton
    All time high Brent = $147.50 (July 11, 2008)
    All time high Light crude (WTI) = $147.27 (July 11, 2008)




2018 October 17

18:03 PGNiG and Venture Global LNG announce LNG Sales and Purchase Agreements for 2 million tonnes per year
17:46 The Freeport of Riga Authority continues to develop cooperation with China
17:22 Port Manatee enjoys record fiscal year with diverse growth
17:00 North Sea Port and Titan LNG successfully supply sea-going vessel with LNG fuel
16:55 33 LNG carriers and 8 gas condensate carriers with export cargo left port Sabetta in April-June 2018
16:24 Baku International Sea Trade Port launches two new tugboats
16:02 Hapag-Lloyd announces General Rate Increase for East Asia to Mexico, Central America, West Coast of South America, Caribbean & Panama trade
15:46 New BIMCO & IBIA Bunkering Guide available
15:23 NOVATEK and Fluxys plan to build an LNG terminal in Rostock
15:02 NYK develops original software that diagnoses combustion chamber problems
14:40 RF Government allocates RUB 8.4 billion for the Far East development
14:21 Scorpio Bulkers announces time charter-out agreements
14:03 CMA CGM implements Empty Repositioning Surcharge for exports from all Turkish ports
13:32 Ørsted contracts Van Oord for cable installation Borssele I & II
13:21 Throughput of Ukraine’s seaports in 9M’18 fell by 1.7% Y-o-Y to 95.9 million tonnes
13:04 CMA CGM to introduce new BAF on Asia-Africa trade
12:30 GTT and Dongsung Finetec sign a Memorandum of Understanding
12:02 Maritime and Port Authority of Singapore and partners sign MoU for 3D printing facility and applications in maritime sector
11:53 Identifying barriers to cutting emissions through just-in-time operations
11:27 Norddeutsche Reederei H. Schuldt joins V.Group
10:50 Brent Crude futures price down 0.09% to $81.34, Light Sweet Crude – up 0.06% to $71.88
10:42 CMA CGM to introduce new BAF on Europe-Africa trade
10:37 Damen Shipyards Galati hands over 74-metre fishery research vessel to Angolan government
10:27 Maritime Arctic Competence Center opens in Saint-Petersburg
09:42 KN invests in environmental protection measures
09:20 Baltic Dry Index is down to 1,578 points

2018 October 16

18:33 Maersk Line announces new FAK rates from Mediterranean to West and Central Asia
18:03 ABS holds two seminars at the 58th Genoa International Boat Show
17:55 Throughput of port Kaliningrad in 9M’18 grew by 5% Y-o-Y to 10.65 million tonnes
17:36 Wärtsilä opens the first International Maritime Cyber Centre of Excellence in the world
17:03 CMA CGM announces Overweight Surcharge on Asia and India to Africa trades
16:56 Wärtsilä launches Acceleration Centre in Singapore and partners with MPA and PSA Marine to develop IntelliTug
16:40 Throughput of port Vyborg in 9M’18 up 22% Y-o-Y to 1.33 million tonnes
16:21 Throughput of port Primorsk in 9M’18 fell by 11% Y-o-Y to 39.80 million tonnes
16:03 Höegh LNG announces amendment of the Höegh Gallant time charter
15:44 LUKOIL starts construction of facilities at Rakushechnoye field
15:22 Throughput of port Vysotsk in 9M’18 climbed by 6% Y-o-Y to 13.69 million tonnes
15:03 Avatar Logistics initiates cooperation with Sand & Grus AB Jehander and buys the vessel MS Jehander
14:41 Throughput of port Ust-Luga in 9M’18 declined by 5% Y-o-Y to 72.38 million tonnes
14:20 CMA CGM announces GRR from Far East to West Africa
14:03 Lithuanian Railways, Metrans and the Port of Hamburg strengthen relations
13:52 Throughput of Port St. Petersburg up 12% to 44.22 million tonnes in 9M’18
13:06 Scorpio Bulkers announces update on scrubbers
12:39 Project 22800 small missile ship Burya to be floated out on 23 October
12:13 Rolls-Royce and Intel announce autonomous ship collaboration
11:55 The Port of Riga outlines a vision for future development of Spilve Meadows
11:31 Ørsted selects GeoSea for Borssele 1 & 2 foundation and turbine transport and installation
11:14 Jan De Nul will dredge access channel to Guayaquil Port
11:11 RF Navy’s Baltic Fleet detachment completed tasks in Mediterranean Sea
10:59 Damen Maaskant Shipyards Stellendam celebrates 70 years and bids farewell to director Frits van Dongen
10:50 Detachment of RF Navy's Pacific Fleet completes visit to Republic of Korea
10:28 WMU holds needs assessment workshop in Jordan
10:02 Brent Crude futures price up 0.31% to $81.03, Light Sweet Crude – up 0.11% to $71.86
09:43 IMO ​pushing forward with tackling greenhouse gas emissions
09:17 Baltic Dry Index is up to 1,584 points

2018 October 15

18:23 MOL joins hands with partners to launch FOCUS project
17:59 Moscow to host a conference on construction of LNG-powered and LNG bunker ships on October 24
17:46 Algoma announces cancellation of Croatian newbuilds contracts
17:05 Klaveness Combination Carriers AS registered on NOTC
16:56 Tall ships arrive at Port of Ipswich as part of 'Race of the Classics'