• 2020 February 18 10:21

    MABUX: Bunker market this morning, Feb 18

    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) did not have firm trend and changed irregular on February 17:

    380 HSFO - USD/MT 364.17 (+2.18)
    VLSFO - USD/MT 539.00 (-2.00)
    MGO - USD/MT 599.51 (+2.22)


    Meantime, world oil indexes were little changed on Feb.17 as concerns of falling fuel demand caused by the economic fallout from the coronavirus outbreak in China were offset by expectations that output cuts from major producers will tighten crude supply.

    Brent for April settlement increased by $0.35 to $57.67 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March rose by $0.26 to $52.31 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $5.36 to WTI. Gasoil for March delivery lost $4.25.

    Today morning global oil indexes have turned into slight downward trend.

    The production cuts continued by OPEC may not be enough to stabilise global markets and the oil cartel may have to look cutting crude output by another 0.85 million barrels to balance the market hit hard by the Coronavirus outbreak. In the worst case scenario if China’s demand falls by 2.0-2.6 mbpd in February-March 2020, OPEC may need to further cut production by 0.85 mbpd to prevent the price of global crude oil from falling. China is the largest importer of oil and among its top consumers after the US. The spread of coronavirus there has also impacted oil consumption and resulted a further slide in already oversupplied oil market.

    Meantime, Chinese refineries have cut output by about 1.5 million barrels per day (bpd) over just two weeks, causing crude stocks to pile up. That has left numerous Very Large Crude Carriers (VLCCs), capable of holding more than 2 million barrels of crude each, unable to unload at China’s top crude import terminal of Qingdao. Other cargoes are being diverted to South Korea, Malaysia, Singapore and other locales in China, while storage tanks in Shandong province – where Qingdao is located – are filling swiftly. Oil storage tanks in China’s eastern Shandong province are nearing peaks seen last June as independent refiners slash processing rates. China’s overall crude storage is at 760 million barrels, versus a peak of 780 million barrels in early June last year.

    The International Energy Agency (IEA) slashed its demand forecast for the first quarter of 2020, predicting that global oil consumption will contract for the first time in over a decade. IEA dramatically revised its oil demand forecast, predicting consumption will actually contract by 435,000 bpd, the first outright decline year-on-year since the global financial crisis more than a decade ago. Previously, the agency expected consumption to increase by 800,000 bpd from a year earlier. For the full-year in 2020, the IEA cut demand growth by 365,000 bpd to just 825,000 bpd. That would be the lowest annual increase since 2011, and slightly below the growth figures for 2019, which itself was a down year.

     Iran said that when it comes to the rising tensions in the Gulf, the United States and Saudi Arabia are to blame. Tensions in the Gulf took an anxious turn last month when the U.S. conducted a deadly strike on Iran’s top military leader. The Jan. 2 strike that killed Gen. Qasem Soleimani, a key military figure of Iranian and Middle East politics, followed a string of attacks on locations that hosted U.S. and coalition forces, including the U.S. Embassy in Baghdad. The tension in the Persian Gulf is still one of the main upward drivers for oil and fuel indexes.

    A cargo of 950,000 barrels of crude that had been stranded at sea for about a year has finally docked at the port of Jose in Venezuela. The cargo was worth around $50 million at today’s prices. The cargo, on the Gerd Knutsen tanker, was loaded in January 2019 but never reached its destination on the U.S. Gulf Coast because of the escalation of U.S. sanctions against Venezuela and the takeover of Citgo by Venezuelan opposition leader Juan Guaido with the support of Washington.

    Warmer winter weather this year has reduced U.S. natural gas demand for heating, and as production growth continues to exceed demand growth, U.S. natural gas prices slumped this month to their lowest February levels in two decades. Natural gas prices dipped to below US$2 per MMBtu this January for the first time in almost four years. This winter season, the glut is further aggravated by higher gas production in the Permian, higher than normal inventories, and warmer weather so far this winter. For full year 2020, EIA forecasts that Henry Hub natural gas spot prices will average $2.21/MMBtu, and then rise to an annual average of $2.53/MMBtu next year.  

    Libyan UN-recognized Government of National Accord said, country is facing financial disaster if the Libyan National Army does not lift the oil port blockade. The blockade began in mid-January when a group of paramilitary formations affiliated with General Khalifa Haftar’s Libyan National Army occupied the country’s oil export terminals along with pipelines and fields. Since then, Libya’s oil production has slumped from over 1.2 million bpd to less than 200,000 bpd. Despite rounds of talks, the warring sides cannot seem to find common ground for a ceasefire that would last long enough for oil production to start recovering.

    We expect bunker prices may change insignificant and irregular today in a range of plus-minus 1-3 USD.




2020 April 3

18:42 Concordia Damen nominated to build new, sustainable training vessel for STC Group
18:27 Diana Shipping announces time charter contract for m/v Alcmene with Cargill
18:07 Breakbulk Europe to take place from 29 September to 1 October 2020
17:51 Northern Sea Route cargo traffic in 3M’2020 totaled 7.83 million tonnes, up 7.7% YoY
17:28 ECSA Board: Shipping industry keeps Europe running but will need more EU support to recover
17:14 Tallink continues transporting passengers on Tallinn-Helsinki route
16:50 GT Morstoy completed slope protection under LUGAPORT project
16:25 World Maritime University stays connected in uncertain times
15:46 FESCO provided agent services for vessel delivering platform of Sea Launch spaceport to Primorye Territory
15:22 Rosmorport's Azov Basin Branch carries out measures to prevent COVID-19 spread
14:57 New bunker alert service available for BIMCO members
14:33 NUTEP recognized as best in Basic business activities nomination of Best Stevedore contest
13:49 DeloPorts continues to operate despite quarantine and days off in Russia
13:24 AS Tallink Grupp published its statistics for March and first quarter of 2020
13:01 Zeebrugge Port Authority facilitates extra ground for port users in need due to corona crisis
12:40 Crisis caused by Covid-19 brought changes and highlighted new opportunities for port of Riga
12:18 Sea Port of Saint-Petersburg JSC arranged testing of its employees to detect coronavirus
12:15 Ocean Yield ASA announces delivery of modern dry bulk vessel with long-term charter
11:52 Vladimir Solodov appointed as Acting Governor of the Kamchatka Territory
11:00 Samherji Holding granted an exemption from mandatory bid obligation in Eimskip
10:49 Сorvettes of RF Navy's Baltic Fleet completed training anti-submarine missions at sea
10:21 Brent Crude futures price is down 4.51% to $28.69, Light Sweet Crude – down 5.73% to $23.87
10:00 Bunker prices continue falling at the port of Saint-Petersburg, Russia
09:42 Viking Line continues service in the Baltic Sea
09:36 Yury Bezdudny appointed Acting Governor of Nenets Autonomous Area
09:18 Baltic Dry Index is flat at 624 points
09:09 MABUX: Bunker market this morning, Apr 03
08:33 Ocean Network Express issues its first electronic Bill of Lading

2020 April 2

18:27 FSL Trust completes disposal of crude oil tanker
18:07 CMA CGM announces that this Low Sulphur Surcharge is not applicable
17:54 Aleksandr Tsybulsky appointed as Acting Governor of Arkhangelsk Region
17:31 MAN Energy Solutions's low-speed, dual-fuel engines pass 1,000,000 operating hours
17:16 VARD secures contract for one stern trawler for Framherji
16:59 DHT Holdings announces time charters for six of its VLCCs
16:30 Navigation season opens on the Lower Volga
15:48 PGNiG commences operations at Klaipėda LNG Reloading Station
15:15 World’s largest and most efficient krill trawler to be designed by Wärtsilä
15:13 SMM: Shipping industry steers towards digitalisation
14:49 Bunker prices show no considerable changes at the Far East ports of Russia (graph)
14:26 Vitol Group establishes foothold in Singapore bunker operations
14:02 A.P. Moller - Maersk completes acquisition of Performance Team
13:37 Law ranking heavy fuel oil as medium distillate comes into effect
13:14 Hapag-Lloyd announces GRI from East Asia to East Coast and West Coast of South America, Mexico, Caribbean and Panama
12:52 Covid-19: Passenger transportation by seaborne transport and traffic of small-size ships banned in Crimea
12:25 ABP update: port operations remain open for business
12:01 ABS expands remote survey services
11:28 IMO urges keyworker exemptions for crew changes and repatriations
11:18 Tallink Grupp’s vessel Victoria I to make two return trips on Tallinn-Helsinki-Tallinn route on 2-3 April
10:43 Russian President signs Decree on establishment of Marine Instrument Engineering Corporation
10:21 Brent Crude futures price is up 12.5% to $27.83, Light Sweet Crude – up 10.5% to $22.44
10:06 Jan De Nul nears completion of fabrication of foundations for Taiwan’s Changhua Offshore Wind Farm
10:00 Financing of Nizhegorodsky hydrosystem project to be redistributed in favor of NOVATEK’s projects
09:59 VARD signs contract with P/F Akraberg for the design and construction of a sophisticated unit
09:46 MABUX: Bunker market this morning, Apr 02
09:19 Baltic Dry Index is down to 624 points

2020 April 1

18:36 Diana Shipping announces direct continuation of time charter Ccontract for m/v Myrto with Cargill
18:06 CMA CGM to apply Port Congestion Surcharge for reefer cargo to Philippines (Manila and Subic ports)
17:54 Oil shipments via CPC Marine Terminal in 3M’20 climbed by 4.7% YoY to 16.93 million tonnes with new monthly record set in March
17:35 New BIO SEA BWTS approved by USCG and IMO
17:20 Throughput of port Azov in 3M’2020 fell by 19% to 1.38 million tonnes