Oil Price

Cape of Good Hope Routings Slow Down As Oil Rebounds!

industrial port with containers

According to a LoadStar article written by Mike Wackett, all three east-west vessel-sharing alliances have continued to route some vessels via the Cape of Good Hope to avoid Suez Canal fees, despite discounts that kicked in on 1 May.

The Carbon Footprint Challenge

However, several shippers have complained about the additional carbon footprint the extended journeys generate.

For example, a voyage from Asia to North Europe via the Cape adds some 3,000 miles and five to...

https://mfame.guru/cape-of-good-hope-routings-slow-down-as-oil-rebounds/

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/

O&G Stocks Surged As Oil Price Rose Above US$30 a Barrel!

Oil and gas (O&G) related stocks surged as oil price rose above US$30 a barrel for the first time in two months, reports The EdgeMarkets.

Market rebalance 

Oil and gas (O&G) related stocks on Bursa Malaysia surged with strong trading interests, as the oil price rose above US$30 a barrel for the first time in two months. 

This rise was after the news that major producers are reining in efforts to rebalance the market.

O&G stocks dominated 

O&G stocks dominated the top actives on Bursa, led by Bumi...

https://mfame.guru/og-stocks-surged-as-oil-price-rose-above-us30-a-barrel/

Texas Light Sweet Crumbles in Symmetrical Triangle!

  • WTI June Futures refreshes intraday low to near 100-HMA.
  • A short-term symmetrical triangle limits immediate moves.
  • 200-HMA, early-month tops offer strong downside support.

While stepping back from the two-day-old falling trend line, WTI June Futures on NYMEX drop to $23.92, down near 3.30% on a day, during Monday’s Asian session, writes Anil Panchal for FX Street.

Decline in black gold

The black gold currently declines towards a 100-HMA level of $23.82 ahead of visiting the triangle’s support...

https://mfame.guru/texas-light-sweet-crumbles-in-symmetrical-triangle/

Container shipping teaching OPEC lesson in market management: Fuel for Thought

Container shipping rates vs bunker charge

If OPEC looks out to sea it will find a kindred spirit. Both the oil industry and global trade have been ransacked by a collapse in global demand, with oil producers and the shipping sector employing strategies to restore balance.

While an alliance of ocean carriers has been keeping freight rates stable, there is a difficult journey ahead before they are seen as flag bearers for market management.

Carriers moved fast and decisively to reduce overcapacity and prevent a dramatic drop in freight...

https://blogs.platts.com/2020/05/11/container-shipping-opec-market-management/

Oil Price Roller Coaster Month Ends With High Surge on the Last Day!

According to a Reuters report, oil prices jumped last Thursday, after several producers said they would cut output as signs of the U.S. crude glut was not growing as quickly as many had feared brought an upbeat close to one of the most volatile months for oil trading in history.

Key Developments That Lead To This
  • Fuel demand worldwide slumped about 30% in April.
  • Even after major oil producers led by Saudi Arabia agreed to slash production by nearly 10 million barrels per day (bpd), U.S. crude...

https://mfame.guru/oil-price-roller-coaster-month-ends-with-high-surge-on-the-last-day/

Is COVID-19 The End of The Road for The U.S Oil Industry?

  • 2020 global oil demand may average 20 million barrels per day lower than in 2019.
  • U.S. gasoline comparative inventory has increased by 30 million barrels since March 20.
  • This is a record level of 28.4 million barrels more than the five-year average.
  • Rig count through April 2020 and 12-month lagged production.
  • Gross domestic product (GDP) is proportional to oil consumption
  • U.S. GDP to contract 30-35% in 2020 based on estimates by seventeen investment analysts.

According to an article published...

http://mfame.guru/is-covid-19-the-end-of-the-road-for-the-u-s-oil-industry/

Shut Down or Find Space – Oil Majors Scramble for Storage To Survive!

Reuters Graphic

According to a Reuters report, oil traders are struggling to find enough ships, railcars, caverns, and pipelines to store fuel as more conventional storage facilities fill up amid abundant supply and plummeting demand due to the coronavirus crisis.

What’s the scenario?
  • Dozens of oil tanker vessels have been booked in recent days to store at least 30 million barrels of jet fuel, gasoline and diesel at sea, acting as floating storage, as on-land tanks are full or already booked, according to...

http://mfame.guru/shut-down-or-find-space-oil-majors-scramble-for-storage-to-survive/

US Oil Price Turn Negative Signalling That ‘Big Cuts’ Aren’t Enough!

Oil price chart from 2000 to 2020

The price of US oil has turned negative for the first time in history, writes Andrew Walker, the BBC Economics Correspondent in an article published on the BBC website.

Effect on the market

Andrew goes onto analyzing the economic impact of this news development and we are staring at, in the near future.

  • That means oil producers are paying buyers to take the commodity off their hands over fears that storage capacity could run out in May.
  • Demand for oil has all but dried up as lockdowns across the...

http://mfame.guru/as-us-oil-price-turn-negative-signalling-that-big-cuts-arent-enough/

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