Fuels & Lubes

Leading Shipping Firms Team Up for Sustainable Fuels Project!

  • Maersk, Orsted and other Danish companies team up to produce sustainable fuels on a large scale.
  • Goal of the partnership is to establish large facility that will provide fuels for maritime, air and road transport.
  • Companies say that a hydrogen and e-fuel production site could be up and running by 2023.

Several major Danish firms, including Orsted and Moller-Maersk, have formed a partnership aiming to produce sustainable fuels on an industrial scale, write s Anmar Frangoul for CNBC.

The goal of...

https://mfame.guru/leading-shipping-firms-team-up-for-sustainable-fuels-project/

Asia Oil Margin Hit As China Refineries Goes for Record Oil Export

Reuters Graphic

According to a Reuters report written by Clyde Russell, the rebound in China’s crude oil processing in April looms large over Asia’s refineries, which are already battling weak profit margins from the slump in fuel demand caused by lockdowns aimed at containing the coronavirus pandemic.

A Recovery In Fuel Demand
  • China’s refineries processed the equivalent of 13.1 million barrels per day (bpd) in April, up from a 15-month low of 11.78 million bpd in March, according to calculations based on...

https://mfame.guru/asia-oil-margin-hit-as-china-refineries-goes-for-record-oil-export/

117 VLCC Tankers Transport Super Cheap Crude Oil for Unloading

  • China is taking advantage of the cheapest crude oil in years.
  • It is stocking up as demand is starting to return to the world’s largest oil importer.
  • 117 VLCCs with a capacity of 2 million barrels of oil – are traveling to China for unloading.
  • China expects at least 230 million barrels of oil over the next three months.
  • China’s oil refiners were already buying ultra-cheap spot cargoes.
  • China’s crude oil imports jumped in April to about 9.84 million bpd.

According to an article published in Oil...

https://mfame.guru/117-vlcc-tankers-transport-super-cheap-crude-oil-for-unloading/

Bunkering Moves Ahead During Covid – 19

  • Hong Kong and mainland China’s bunkering industries have largely crossed the peak of their respective COVID-19 (Coronavirus Disease 2019) dramas.
  • And are on the road to recovery, believes the Director of Hong Kong-based Buriskey Supply & Services Co Ltd (Buriskey).
  • The Chinese industrial markets have meanwhile resumed operations since a month back and domestic bunker demand from locally operated vessels will slowly return in the near future.

A recently published article in Manifold Times,...

https://mfame.guru/bunkering-moves-ahead-during-covid-19/

Oil Continues To Rally As Crude Inventories Fall!

  • Oil jumps after API reports draw in crude oil inventories and API estimated a large build in crude oil inventories of 7.58 million barrels.
  • Oil production in the United States fell from 13.1 million bpd to 11.6 million bpd – a drop of 1.5 million bpd.
  • Distillate inventories were up by 5.1 million barrels for the week while Cushing inventories saw a draw of 5 million barrels.

Oil jumps after API reports draw in crude oil inventories, writes Julianne Geiger for Oil Price.

Large crude oil...

https://mfame.guru/oil-continues-to-rally-as-crude-inventories-fall/

LSFO Low Price Savings Boon for Shipowners As Trade Volumes Fall!

Bunker fuels and covid-19
  • The low fuel pricing have lead to a mixed benefit for shipowners who had to take the LSFO switch decision due to IMO 2020
  • the lower price has resulted in huge savings benefit of shipowners says BIMCO Chief
  • However, the near 15% slump in freight volume isn’t good for shipping

According to a Platts article written by Britt Russell-Webster, the Associate Editor of S&P Global Platts from London, the shipping industry, skating on razor-thin margins, is drawing solace from cheaper bunker fuel prices...

https://mfame.guru/lsfo-low-price-savings-boon-for-shipowners-as-trade-volumes-fall/

Dwindling Global Economy Knocks Down the Escalating Freight Rates

  • Geopolitical tensions have now eased, leaving freight rates to feel the full effects of the weak underlying market and falling demand.
  • Tanker shipping looks set to be under pressure for the rest of the year.
  • The tanker shipping industry was once again caught in a whirlwind, as freight rates skyrocketed with little regard to the poor market fundamentals.

A news article in BIMCO written by Peter Sand, highlights the details regarding freight rates, price war, rates for small crude tankers and...

https://mfame.guru/dwindling-global-economy-knocks-down-the-escalating-freight-rates/

COVID19 Physical Inspections Delay To Effect Oil Tankers Storage Capacity!

According to a Reuters report, Ship assessors are resorting to virtual inspections of oil tankers to keep vessels afloat, as the coronavirus pandemic makes physical visits to check for seaworthiness tougher and a slump in fuel demand increases the need for ships as storage.

What is it?
  • Oil tankers require rigorous inspections twice a year to reduce the risk of oil spills or mechanical collapse with polluting cargoes onboard.
  • But the global pandemic has disrupted international trade, leaving...

https://mfame.guru/covid19-physical-inspections-delay-to-effect-oil-tankers-storage-capacity/

Flotilla of Oil Tankers Flock To The Seas To Act As Temporary Storage

  • Tankers everywhere are acting as temporary storage capacity.
  • A small flotilla of tankers full of crude is idling near the busy shipping lanes.
  • They are a potential source of oil price volatility for months to come.
  • The reasons for most of this expensive excess storage is obvious: the global supply glut.
  • Tankers carrying enough crude to satisfy 20% of the world’s daily consumption gathered off the California coast.
  • The eventual unloading of all of these floating supplies will have a significant...

https://mfame.guru/flotilla-of-oil-tankers-flock-to-the-seas-to-act-as-temporary-storage/

Charterers Turn To Tanker Floating Options for Cargo Storage!

  • Charterers have shown renewed interest in floating storage for oil products in Europe, as freight rates have fallen significantly since April.
  • Charterers look to have storage as an option probably want flexibility in case floating storage economics become viable.
  • Storage plays could be profitable for charterers, depending on how much risk can be mitigated.

Charterers have shown renewed interest in floating storage for oil products in Europe, as freight rates have fallen significantly since...

https://mfame.guru/charterers-turn-to-tanker-floating-options-for-cargo-storage/

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