Fuels & Lubes

Natural Gas Markets Falls Below the $1.80 Level!

The natural gas markets have fallen again during the trading session on Monday 01 June, breaking below the $1.80 level, reports Christopher Lewis for FXEMPIRE.

A slow market pattern

Natural gas markets initially fell on Monday to break down below the $1.80 level again. The point to be noted here is that there is a major gap underneath, which has been filled and typically will offer a bit of support. 

Having said that, the market looks highly likely to continue to see noisy action down in this area...

https://mfame.guru/natural-gas-markets-falls-below-the-1-80-level/

Risk Management Strategy Key To Volatile Bunker Industry

  • The bunker market is being advised to take on more hedging to protect itself from volatility as prices start to rise again.
  • Ship & Bunker‘s G20 index of prices at 20 leading bunker ports saw its first monthly gain since December in May, and was at a 10-week high of $296/mt on Tuesday.
  • While this rally may yet prove short-lived, shipowners may be faced with a rapid jump in their expenses if they have no hedging in place to soften the impact of market volatility.

A recently published article in...

https://mfame.guru/risk-management-strategy-key-to-volatile-bunker-industry/

Fighting Oil Prices Amidst Slow Economic Recovery

  • Oil prices fell on Thursday, reversing gains in the previous session, on concerns that supply will rise if major producers are unable to agree to extend the depth of output cuts that have supported recent gains.
  • Brent crude futures fell 1per cent, or 41 cents, to US$39.38 a barrel as of 0157 GMT.
  • U.S. West Texas Intermediate (WTI) crude futures fell 1.6per cent, or 61 cents, to US$36.68 a barrel.

A recently published article in CNA based on the reports by Sonali Paul, it elaborates on the oil...

https://mfame.guru/fighting-oil-prices-amidst-slow-economic-recovery/

Weighing The Pros and Cons of Hydrogen and Ammonia As Fuel Source

  • The power source is a trade-off between space and various factors.
  • It depends on the weight of the fuel and power generator and the total capacity of the ship.
  • Powering the ship must be deducted from the freight earned for carrying cargo.
  • HFO is the normal fuel of choice for ships because it is relatively cheaper.
  • Methanol is a good substitute for HFO and ICE is preferred as the most efficient means of using fuel.
  • Ammonia is twice as energy-rich as liquid hydrogen by weight.

According to an...

https://mfame.guru/weighing-the-pros-and-cons-of-hydrogen-and-ammonia-as-fuel-source/

World Oil and Bunker Market Witnesses An Upward Trend

  • OPEC and key ally Russia moved a conference call to discuss future output cuts.
  • Brent for August settlement increased by $1.25 to $39.57 a barrel.
  • West Texas Intermediate for July rose by $1.37 to $36.81 a barrel on the New York Mercantile Exchange.
  • The Brent benchmark traded at the premium of $2.76 to WTI. Gasoil for June delivery added $20.25.
  • Oil prices have soared thanks to record supply cuts by OPEC+.
  • U.S. sanctions choked exports and two Mexican firms that had acted as intermediaries for...

https://mfame.guru/world-oil-and-bunker-market-witnesses-an-upward-trend/

0.5% Marine Fuel Witnesses a Mixed Market Trend

  • Marine Fuel 0.5% market witnessed mixed sentiment on the first trading day.
  • Singapore Marine Fuel 0.5% swaps curve has progressively slipped deeper into contango.
  • The end-user Marine Fuel 0.5% bunker market remained supported.
  • It is due to a widening contango that led sellers to refrain from offering down to attract buying interest and hold on to oil instead.
  • A supply overhang coupled with lackluster demand has led the differential.
  • Mean of Platts Singapore Marine Fuel 0.5% assessments to dip...

https://mfame.guru/0-5-marine-fuel-witnesses-a-mixed-market-trend/

Viswa Lab Analyses The Cost of Shipping oil Around the Globe!

The OPEC + strong production cut bolstered the crude prices by almost 80% and slashed the amount of crude oil movements around the world, says Viswa Lab in its latest technical update. 

Drop in crude tanker charter rate 

The charter rate for crude oil tankers dropped more than 70% from their March 2020 peaks. 

Fluctuation in rates

In March, when Saudi Arabia was exporting more oil:

  • VLCC’s charter rates went up to $250,000 a day. 
  • The same charter for a VLCC dropped down to $59,000 a day and even...

https://mfame.guru/viswa-lab-analyses-the-cost-of-shipping-oil-around-the-globe/

Fluctuating Bunker Prices Puts An End To TC Revenue

  • Bunker prices fluctuate with the oil markets but even after stripping out the effects of crude, prices between ports are still extremely volatile.
  • As a result, the cheapest bunker port on the same voyage can change every 3 days, meaning shipowners can suffer big P&L losses by not constantly re-evaluating all options right until they have to fix.
  • Even if all options are considered, high price volatility between bunker ports means the choice needs to be continuously scrutinised to avoid large...

https://mfame.guru/fluctuating-bunker-prices-puts-an-end-to-tc-revenue/

Bunker Industry Heading Towards Consolidation and Credit Lines

  • Financial times are bringing the issue of credit lines to the forefront.
  • Marine fuel sellers are essentially acting as financing houses for ship operators.
  • Bunker players are shielding themselves by culling customers deemed riskier.
  • Companies are doing the usual things during crises: burning, borrowing, or raising cash.
  • A consolidation of the bunker suppliers is inevitably on the cards.

According to an article published in Platts and authored by Paul Hickin et al., tough financial times are...

https://mfame.guru/bunker-industry-heading-towards-consolidation-and-credit-lines/

Marine Cylinder Oil Approved for Use With LSFO, VLSFO and LNG Unveiled!

™
  • Mobilgard 540 X is suitable for safe and reliable use with LSFO, VLSFO and LNG.
  • It passed extensive fit-for-use testing on the most recent engine designs. 
  • It meets WinGD’s requirements for all three fuel types.
  • ExxonMobil offers Mobil Serv℠ Cylinder Condition Monitoring (CCM) for real-time actionable insights.

ExxonMobil unveils next-generation multi-fuel marine cylinder oil approved for use with LSFO, VLSFO and LNG, says a press release published on their website.

Next-generation cylinder oil

E...

https://mfame.guru/marine-cylinder-oil-approved-for-use-with-lsfo-vlsfo-and-lng-unveiled/

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