• 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 August 19

08:19 CMA CGM announces GRR from UAE to East Africa
08:14 Maersk Line introduces Peak Season Surcharge – Scope World to Apapa, Nigeria and Tin Can Island Port, Nigeria
08:12 CMA CGM announces GRR from India to East Africa
08:07 Maersk Line increases rates from Middle East & Indian sub-continent to North America

2018 August 18

08:03 Port of Oakland to build Seaport Logistics Complex
08:00 CMA CGM announces PSS from Europe, Scandinavia, Black Sea and West Med to Indian Ocean islands
07:57 CMA CGM announces FAK rates from Asia to North Europe
07:41 A.P. Møller - Mærsk A/S posts results for Q2 2018

2018 August 17

20:03 A system of floating containment booms installed near two jetties of Petersburg Oil Terminal
18:26 Krasnoye Sormovo Shipyard launches Pola Feodosia, forth of RSD59 dry cargo vessel series
17:54 Primorsk Oil Terminal’s throughput in Jan-Jul falls 12% to 31.38 million tonnes
17:51 Nevsky Shipyard continues testing of unique replenishment system
17:08 Marine Robotics: Laws, Applications, Technologies roundtable registration underway in Moscow and Vladivostok
17:03 Port of Vysotsk volume in Jan-Jul down to 10.45 million tonnes
16:27 Port of Ust-Luga throughput in Jan-Jul down 4% to 56.27 million tonnes (details)
16:04 Western Bulk publishes First half 2018 results
15:53 Port of St. Petersburg seven-month volumes grow 13% to 34.39 million tonnes (details)
15:34 Stena Blue Sky delivers the first LNG cargo at energy giant ENN's new terminal in China
15:03 ANL announces FAK rates from North Europe and Mediterranean to Australia
14:33 A.P. Møller - Mærsk A/S delivers revenue growth in the second quarter of 2018
14:03 Third railway track put into operation in Port Bronka
13:58 Nevsky Shipyard wins contract for Arc4 passenger/freight vessel duo to be deployed on Sakhalin-Kurils route
13:51 Samsung Heavy Industries wins two eco-friendly LNG carriers
13:21 TORM posts H1 2018 interim results
13:04 A.P. Møller - Mærsk A/S to pursue a separate listing of Maersk Drilling
12:30 Hapag-Lloyd invests in growing East African market
12:07 Port of Oakland gives $70,000 to develop eco-jobs workforce
11:07 Hapag-Lloyd announces rates for Far East Westbound East Asia (including Japan) to North Europe and Mediterranean
10:45 Crude oil futures price edges down to $71.38 in London, in New York to $65.44
10:07 Latest Sanmar tugboat under trials
10:02 Gazprom Neft 1H 2018 net profit soars 1.5-fold
09:41 Baltic Dry Index adds 2 pts to 1727 points
09:37 Diana Shipping announces time charter contract for m/v Coronis
09:32 Port of St. Petersburg bunker prices close the week on a down note
09:06 Gulftainer invests AED11 mln in road extension
08:27 CMA CGM implements new FAK rates from North Europe and Mediterranean to Australia

2018 August 16

18:45 Kalashnikov Concern’s Vympel Shipyard lays keel for freezer trawler of Project T30
18:06 Port of Dover awarded contract to Solent Marine Ltd to design and fit-out Dover's new marina
17:32 Maersk Line announces rates from Far East Asia to West Africa
17:06 Hapag-Lloyd increases reefer fleet by 11,100 containers
16:56 DFDS orders additional freight ferry (ro-ro) newbuilding from the Chinese Jinling Shipyard
16:52 Sovcomflot’s shuttle tanker Governor Farkhutdinov ships 600th crude oil cargo for Sakhalin-2
16:03 CMA CGM announces GRR from Asia to Mozambique
15:47 Taganrog Sea Commercial Port's H1 2018 employee benefits and rewards programme totals RUB 2.2 million
15:31 Melbourne port operator ICTSI may be investigated by State and Federal authorities
15:09 Bunker prices at Far Eastern ports remain flat
14:33 CMA CGM announces GRR from Asia to Indian Ocean
14:27 MABUX: Bunker prices may change irregular next week
14:13 Maersk Line announces rates from Far East to North Europe
13:42 First ever S-T-S loading of 70000dwt Panamax coal carrier performed at Shakhtersk harbour transshipment location in Sakhalin
13:32 More investment contracts at the Port of Gdansk
13:02 Wärtsilä equipped Canadian ferry will have minimal environmental impact
12:16 Damen Shipyards Galati celebrates 125 years
12:09 Okskaya Sudoverf Shipyard launches 6th serial barge of Project ROB20
12:03 Boskalis presents half-year results and terminates loss-making low-end transport activities
11:59 Port of Oakland container volume up 3.6 percent in July 2018
11:45 Rolls-Royce launches new battery system for ships
10:58 DP World revenue up 14.4% in H1 2018
10:57 VARD secures contract for one autonomous and electric-driven container vessel for YARA
09:39 EU NAVFOR mission operation commander visits Spanish MPRA in Djibouti