crude

Rebound Hopes for Shipping Industry A Distant Dream

  • Orders for new oceangoing ships are at record lows as carriers sit on the sidelines.
  • COVID-19 pandemic has left cargo carriers’ demand forecasts in tatters.
  • Shipyard executives in China, South Korea, and Japan are now in a high-stakes competition.
  • Interest in big container ships seen as fundamental to growing global trade is close to zero.
  • At $175 million each, LNG carriers are more expensive than other ship types.
  • Owners are looking to order large tankers as demand to move crude and petroleum...

https://mfame.guru/rebound-hopes-for-shipping-industry-a-distant-dream/

Container Volume at Major Chinese Ports Declined UpTo 15% in Early May!

  • Cargo throughput at major Chinese ports declined 5.6% and Yangtze river hub ports dropped 11.8% during the first ten-day period of May.
  • The container volume of eight major ports declined 7.3% and half of the ports saw over 15% decline.
  • The crude oil throughput of major coastal ports increased 6.1% with growth rate of Rizhao port and Yantai port exceeding 20% and Dalian port over 40%. 
  • Ports along Yangtze river continue to face low cargo volumes posting a decline of 11.8% and 25.4% for cargo...

https://mfame.guru/container-volume-at-major-chinese-ports-declined-upto-15-in-early-may/

Why Petrol And Diesel Prices Remain The Same Despite Fall in Prices?

  • Crude oil trends and prices experience bouts of volatility as storage fills across the world.
  • The historic rout in oil markets sent the US crude oil prices to negative USD 40 a barrel.
  • There is no change in petrol and diesel prices in India for over 45 days.
  • Indian Oil, HPCL, BPCL share prices fall up to 13% as they decide to bear petrol.
  • Lockdown situation for almost 90% of the world and travel curbs has sapped the demand for oil.
  • Storage constraints in the US have led to an unprecedented...

http://mfame.guru/why-petrol-and-diesel-prices-remain-the-same-despite-fall-in-prices/

Tanker Rates Double As More & More Crude Goes for Storage!

According to a Reuters report, supertanker freight rates are on the rise for a second time this month as producers, refiners and traders scramble to secure ships to transport crude or store a fast-growing global glut of oil, industry sources said.

What happened?

Freight rates for very large crude-oil carriers (VLCC) along the Middle East Gulf to China route were assessed at about $180,000 a day on Monday, up from some $125,000 on Friday and a weekly low of about $90,000 a day on Wednesday,...

http://mfame.guru/tanker-rates-double-as-more-more-crude-goes-for-storage/

How OPEC’s COVID-19 Measures Cripple Shipping?

  • 1 million-barrel-per-day (b/d) production cut from OPEC+ jumped to 1.5 million b/d.
  • Crude prices fell by 2% despite the OPEC news and depend on various sectors.
  • OPEC cuts are a plus for crude tankers because such reductions are replaced by U.S. exports to Asia for more capacity.
  • The global crude-tanker market is around 40 million b/d.
  • The impact of a 1.5 million-b/d cut — 4% of seaborne volumes is challenging for crude-tankers.
  • OPEC+ is able to stabilize crude oil prices, it is negative for...

http://mfame.guru/how-opecs-covid-19-measures-cripple-shipping/

What Will Happen To Shipping If Crude Prices Collapse?

  • Crude prices are facing a bleak future with coronavirus and collapse of OPEC+.
  • Saudi Arabia ramping up from production from 9.7 million barrels per day (b/d) to as much as 12 million b/d.
  • It is also offering steep discounts on April cargoes with a full-on price war expected.
  • The decline in crude prices ultimately flows through to the price of marine fuel.
  • The average VLSFO price at the world’s top four bunker hubs was $414.50 per ton.
  • The plunge in the commodity price will be positive for...

http://mfame.guru/what-will-happen-to-shipping-if-crude-prices-collapse/

Is Algeria Posing A Competition For Singapore Amidst Rise in LSSR Prices?

  • Algeria’s LSFO finds increased demand as part of the 0.5% marine fuel blending pool.
  • Crude factors have gone from $7.40/b premium on January 2 and a discount of $1.40/b on January 22, 2019.
  • Approximately 400,000 mt/month of LSSR is exported from the 335,000 b/d refinery complex at Skikda, Algeria.

According to an article published in Platts, Algerian low sulfur straight-run fuel oil has found increased demand as part of the 0.5% marine fuel blending pool.

A suitable fuel for blending

The product...

http://mfame.guru/is-algeria-posing-a-competition-for-singapore-amidst-rise-in-lssr-prices/

EIA expects crude oil prices to fall in the first half of 2020

The US Energy Information Administration’s (EIA) published its January Short-Term Energy Outlook (STEO), forecasting that the Brent crude oil spot price will average $65 per barrel (b) in 2020 and $68/b in 2021 and that the West Texas Intermediate (WTI) spot price will average $59/b in 2020 and $62/b in 2021.

Specifically, EIA expects that crude oil prices will remain at high levels in the first few months of 2020, reflecting a price premium on crude oil from recent geopolitical events. However,...

https://safety4sea.com/eia-expects-crude-oil-prices-to-fall-in-the-first-half-of-2020/

Oil stable as economic growth in China raises concerns

Reuters reports that oil prices hit high on Friday, January 17, but were little changed during the week as the sluggish economic growth in the world’s biggest crude importer, China, raised concerns over fuel demand and countered optimism from the signing of the China-U.S. trade deal.

It is said that the world’s second-largest economy grew by 6.1% in 2019, constituting its slowest expansion in 29 years.

Margaret Yang, market analyst at CMC Markets, quoted to Reuters that “a well-expected...

https://safety4sea.com/oil-stable-as-economic-growth-in-china-raises-concerns/

Crude Cargoes Sell As New IMO Rules Loom

Angolan crude cargoes flew off the shelf this week as refiners mopped up heavy, sweet oil that produces high yields of fuel that will comply with new IMO rules on shipping from January, reports Reuters.

  • Relatively firm refining margins were helping to buoy the market for light, sweet Nigerian
  • In the Mediterranean, light, sweet grades such as Saharan Blend and Azeri Light were also propped up. Azeri Light in particular has been selling at record highs despite the recent drop in freight rates
  • Less...

http://mfame.guru/crude-cargoes-sell-as-new-imo-rules-loom/

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