Marine Link
Saturday, November 18, 2017

Physical Oil Markets News

Asian Floating Storage Declines as Crude Market Tightens

File Image (CREDIT: AdobeStock / (c) Jose Gill)

Strong demand is tightening the market but rising US output could sap efforts to rebalance market. The amount of oil stored on tankers around Singapore has dropped sharply in the last months, the latest indication that OPEC-led supply cuts are successfully tightening crude markets even as U.S. exports have soared. Shipping data in Thomson Reuters Eikon shows around 15 super-tankers are currently filled with oil in waters off Singapore and western Malaysia, storing around 30 million barrels of crude.

Market Report Shows Oil Prices Bullish

Burgeoning momentum to own oil seems poised to push oil prices higher for now. On the week, U.S commercial stocks built led by crude, while Japanese crude stocks drew strongly, according to a market report by NYC-based PIRA Energy Group. It is hard not to be bullish oil prices with the global economy gradually improving, tight physical oil markets and MENA turmoil, which is already substantially reducing global oil supplies and has the potential to reduce supplies further. Current positioning and likely September deflationary type headlines, due in part to a challenging calendar, but also the startup of Iranian nuclear negotiations, pose downside risks to oil prices.

Crude Tanker Shipping Market to Get Hurt in 2018

Graph:  Drewry Shipping Consultants Limited

Crude tanker freight rates are expected to decline further in 2018 following a sharp decline in 2017, according to the latest edition of the Tanker Forecaster, published by global shipping consultancy Drewry. Although tonnage supply growth in the crude tanker market is expected to be low next year after surging in 2017, this will not be enough to push tonnage utilisation rates higher as demand growth is expected to be sluggish. A slowdown in global oil demand growth and a likely decline in China’s stocking activity will keep growth in the crude oil trade moderate next year.

US to Become Oil and Gas World Leader in Long Term - IEA

© travelview / Adobe Stock

The head of the International Energy Agency Fatih Birol said on Thursday the United States would - in the long term - become the "undisputed leader of oil and gas production worldwide".   Speaking at the U.N. climate conference in Bonn, Germany, he said the agency expected oil markets to rebalance next year if oil demand remained "more or less" as robust as it is today and if OPEC and non-OPEC continued with their oil production cuts.     (Reporting by Ahmad Ghaddar; Editing by Mark Potter)

U.S. Merchant Bank Buys Aging Newfoundland Refinery

A New York-based commodities merchant bank run by veteran energy traders, Neal Shear and Kaushik Amin, announced on Friday plans to buy the aging Come by Chance refinery in Newfoundland from South Korea's state-run oil company. Korea National Oil Corp said it will sell the 115,000-barrel-per-day refinery to SilverRange Financial Partners LLC for an undisclosed price following a months-long search to find a buyer. The deal also includes 53 gas stations and convenience stores. SilverRange is a New York-based merchant bank focused on energy and natural resources owned by SilverPeak Partners, a real estate fund with over $12 billion in assets under management, according to its website.

OW Bunker Contracted for BOSTCO Terminal

BOSTCO Terminal (photo courtesy of Kinder Morgan Energy Partners)

OW Bunker announced that it has signed an exclusive alliance with UNIPEC America to provide products at the new BOSTCO (Battleground Oil Specialty Terminal) fuel oil terminal in Houston. The move further expands the company’s physical presence in the region, complementing its existing operations in the Gulf of Mexico and Panama. UNIPEC America has negotiated the rights to supply bunkers ex-pipe at the new BOSTCO terminal. In conjunction with this, OW Bunker has developed a partnership agreement with UNIPEC America to provide calling vessels with quality products and services from January 2014.

Damen Presents ‘Gone With the Wind'

Image: Damen Shipyards Group

Marco Bovio, Senior Research Hydromechanics Engineer at Damen, presented details of internal research Computational Fluid Dynamics (CFD) based project ‘Gone With The Wind’ (GWTW). For the past two years Damen has been conducting a review of CFD technology and its applications in the maritime industry, and GWTW has been addressing one specific aspect of this. Its purpose, to look at the capability of CFD to accurately model the aerodynamic forces that act upon vessels above the waterline, as a separate analysis to those CFD studies that focus on the interactions that occur below the surface.

Aegean Becomes Fourth Bunker Supplier to Exit Singapore

Aegean Bunkering Pte Ltd will halt physical supply operations in Singapore by January, the company said, becoming the fourth such firm to exit the world’s largest marine refuelling hub after it adopted tougher bunkering procedures this year. Since adopting mass flow meters (MFM) to streamline operations on marine refuelling, or bunkering, barges at the start of 2017, suppliers in Singapore have seen margins squeezed and competition surge in the battle for market share. “2017 has seen heightened commercial pressures in Singapore, and as a result, management has determined that Aegean’s resources can be more profitably deployed elsewhere,” its president, Jonathan Mcilroy, said in a statement on Tuesday.

Catching a Jones Act Seaman’s 'Golden Parachute'

© wanfahmy / Adobe Stock

A challenging offshore environment produces a different but equally difficult development. Will you be ready when it comes to your fleet? Unfortunately, our industry continues to suffer due to the depressed oil prices that started in 2014. When the price of oil initially dropped, the industry’s outlook remained positive, and I remember hearing the mantra: “Stay lean for 2015.” Everyone thought that oil prices would rebound in short order and that we were only weathering a short downturn.

OW Bunker Launches Australia Operations

OW Bunker, a physical distributor and reseller of marine fuels, announced the launch of a physical distribution operation in Australia. The move is part of OW Bunker’s strategy to further expand the company’s global physical distribution presence in key locations for customers, ensuring end-to-end quality in the services and products that it provides. OW Bunker has leased a fuel oil tank in Port Kembla, New South Wales. The company will provide vessels with a full range of products including RMG 380 cSt and RME 180 cSt fuel oil ex-pipe and DMA gas oil by road tanker.

Brent Oil Stays Above $60

Brent oil held above $60 a barrel on Monday, near its highest since mid-2015, on expectations OPEC-led production cuts would be extended beyond March although rising Iraqi exports put a lid on prices. Brent crude futures were up 10 cents or 0.2 percent to $60.54 per barrel at 1:39 p.m. EDT (1739 GMT), close to its highest level since July 2015. U.S. West Texas Intermediate (WTI) crude futures were 14 cents or 0.26 percent higher at $54.04 a barrel. "The market has rallied pretty significantly and I think it's predicated on the fact that the Saudis and Russians are continuing the cut agreement," said Gene McGillian, manager of research at Tradition Energy in Stamford, Conn.

Kounalakis Joins OW Bunker N. America

Photo courtesy of OW Bunker

OW Bunker, a reseller and physical supplier of marine fuels, announced the appointment of Georgia Kounalakis to its physical supply operation in North America. Kounalakis joins the region’s senior team to take on responsibility for business development and help to drive further sales growth across North America, in line with the company’s global expansion strategy. Kounalakis joins OW Bunker North America from Aegean Marine Petroleum Inc, where she most recently held the position of General Manager – Americas.

Neste Oil Uses Veson Nautical IMOS Trading

Veson Nautical, the US-based developer of proven software solutions for the commercial maritime community, announced that Neste Oil Corporation has purchased Veson Nautical’s Integrated Maritime Operations System (IMOS) Trading Module for Neste’s Shipping Division. Veson Nautical IMOS Trading provides a solution for monitoring and managing physical and Forward Freight Agreement (FFA) positions and risk. Currently, Neste’s Shipping Division utilizes Veson Nautical’s IMOS Chartering, Operations and Financials modules to manage all commercial shipping activities for its 30-vessel fleet. Ports of call include the Baltic, the North Sea and the North Atlantic Region; the company transports about 40 million tons of crude oil, oil products and chemicals annually.

Vitol's 2015 Revenue Sinks 38% to $168 Bln

Photo: Vitol

Vitol's 2015 revenue fell 38 percent to $168 billion in "challenging" market conditions, the commodity trader said on Tuesday.   The world's largest independent energy trader's sharp fall in revenue came despite traded volumes of crude oil and products rising 13 percent to 303 million tonnes.   "Whilst the market structure favours a physical trader, the absolute price levels and market volatility are causes for caution," Ian Taylor, president and CEO of Vitol said.   (Reporting by Sarah McFarlane, editing by Louise Heavens)

Bomin Launches Bunker Operations in Copenhagen

The Bomin Group, a global physical supplier and trader of marine fuel oil, has announced that it is launching a physical operation in Copenhagen, Denmark. The expansion is in line with the company’s ambitious plans for growth throughout 2015. The Copenhagen operations complement Bomin’s existing physical network in the Baltic Sea region, including Tallinn, Stockholm and Rostock. “Securing supply in key markets for our customers is an important part of the growth strategy for the Baltic region”, said Anatoli Belov, Managing Director Bomin Baltic. “Our physical offering enables us to take more control of the bunkering process, ensuring that customers are provided with quality products and at the right quantity…

Bunker Holding Adds Subsidiary Unioil Supply

The Bunker Holding Group has established a new subsidiary operating under the name Unioil Supply A/S. The physical setup, based in Aalborg, consists of professionals from the former OW Supply & Trading. The Danish-based Bunker Holding is the parent company of a group of companies specializing in the purchase, sale and supply of fuel and lube oil to ships as well as risk management and associated services. The group operates globally within the shipping business and is represented by 36 own companies worldwide, currently in 25 countries. As part of its strategy Bunker Holding has decided to enter the physical part of the bunker market.

KPI Bridge Oil Opens Athens Office

Jesper D. Rasmussen (Photo: KPI Bridge Oil)

KPI Bridge Oil, a global trader and broker in marine fuels, marine lubricants and risk management products, has opened a new office in Athens, Greece. The new venture comes as part of the group’s broader growth strategy and desire to further develop its key markets. KPI Bridge Oil has been covering Mediterranean ports through its Istanbul and London offices for over four decades but the need for a physical presence in the important Greek market has become stronger in recent years.

Oleum Enters West Africa as Physical Bunker Supplier

Oleum DWC-LLC is a new physical supplier focussing on supply of marine fuel and gas-oil offshore the West African coastline. All products; 380 cst, 180 cst and MGO are meeting full ISO:2010 specifications. “We will be operating a 'one-stop-shop' and we have full control of the entire supply chain. Oleum will control every aspect of the operation, from the sourcing and loading of our cargo to the actual delivery to the end user. Cargo is directly sourced from oil majors and transported in Major vetted tonnage to ensure that the quality will never be compromised…

Chemoil Sparks New Age for Independents in 2008

Dynamics within the global marine fuel industry are shifting rapidly according to Chemoil Energy Ltd. With a growing physical presence in the world's four key oil ports, following the launch of its Helios Terminal, Chemoil is confident that its ability to effectively manage its customers complete delivery supply chain on a global basis can lead a new age for independent marine fuel suppliers and present a serious challenge to the industry status quo. In January 2008, the company will begin operations at its 448,000 cubic meter Helios terminal in Singapore, and is also planning to start delivering fuel from the GPS-Chemoil terminal in the UAE port of Fujairah shortly afterwards.

Cyber Shoal Waters

© beebright / Adobe Stock

Over the past two months the world has been rocked by three major hacking events that have garnered international notice. These included the EQIFAX event in which 140 million individuals were reported to be possibly compromised, the WannaCry attack and the NotPeyta event. In the past two years the emphasis on the cyber security of the Marine Transportation System, a vital economic cog to the world has come under increasing scrutiny. In August, trade journals and major international…

Shipbrokers, Oil Brokerage House Form Freight Forwards

BraemarTankers Ltd., Galbraith's Ltd., E.A.Gibson Shipbrokers Ltd., PVM Oil Associates Ltd. and Seascope Shipping Ltd. have formed Global Freight Forwards Limited. The company has been created initially to broker forward freight swaps for the tanker market segment in key trade routes. Contracts have been devised to meet multi-client needs and in response to Owners' and Charterers' requirements for freight protection without taking physical delivery. Global Freight Forwards Limited will be supported by four of the leading London based shipbrokers with a global client base together with PVM Oil Associates, the foremost oil brokerage house, which brings its years of experience of screen and paper oil markets.

CNPC, Cheniere Pact for LNG

Photo: Cheniere Energy, Inc

China’s state-owned oil company, China National Petroleum Corporation (CNPC), and U.S. independent energy company Cheniere Energy have signed a Memorandum of Understanding (MoU) for long-term sales and purchases of liquefied natural gas (LNG), Reuters reported. The report quoted U.S. State Department saying that the deal between the two companies was signed during president Trump’s first state visit to China. Neither companies disclosed details of the transaction. According to CNPC…

Maritime Cyber Security: The Wrong Formula

© leeyiutung / Adobe Stock

For many industries, cyber security is about target hardening and perimeter defense. This makes sense, as cyber security is implemented in much the same way that physical security is implemented. We often think of it in terms of the medieval castle design, which translates to defense in depth in modern vernacular. This formula makes sense, as we can see and touch perimeter defense in physical security. We have seen and are comfortable with things such as fencing, ingress and egress areas (think doors, drives, sidewalks), guard stations and cameras. We like things we can see and touch.

Maritime Reporter Magazine Cover Nov 2017 - The Workboat Edition

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