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.
Aegean Exits Singapore Bunker Market
Aegean Bunkering Pte Ltd on Friday said it had this week left the world's largest marine fuels market in Singapore after handing back its supply and craft operator licences. The company had announced in October that it would halt physical supply operations in Singapore by January amid heightened commercial pressures after the city-state adopted tougher bunkering procedures. Aegean Bunkering, headquartered in Greece, was last year ranked the 20th largest marine fuels supplier by volume in Singapore from a total of 55, data from the Maritime and Port Authority of Singapore (MPA) showed.
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.
Rolls-Royce Shares Jump as Commercial Marine Unit Sale Mulled
Britain's Rolls-Royce said on Wednesday it was considering the sale of its commercial marine business, which has been hit by weak demand in offshore oil and gas markets, as part of a restructuring of the company into three core units. Shares in the company jumped after it said the loss-making unit could be sold. They were trading up 7.2 percent at 1330 GMT. The announcement came as part of a restructuring of the aero-engine maker into civil aerospace, defence and power systems units, with naval marine and nuclear submarines consolidated into defence and civil nuclear into power systems.
OW Bunker Contracted for BOSTCO Terminal
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.
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.
Kounalakis Joins OW Bunker N. America
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
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…
KPI Bridge Oil Opens Athens Office
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.
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.
London Gateway Ups Security Measures
Expanded use of converged security and information management platform will support physical and IT security program at DP World London Gateway. London Gateway, one of the U.K.’s major ports owned and operated by DP World, has implemented converged security and information management (CSIM) software port-wide to increase security and provide overall situational awareness capability. Situated on the north bank of the River Thames, the deep-sea container port is located next to Europe’s largest logistics park, providing shipping access to key U.K. consumer markets.
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.
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.
Oil Storage Business is Booming
(John Kemp is a Reuters market analyst. Oil producers may be struggling as a result of low prices but the oil storage business has never been in better shape. U.S. refiners, traders and logistics companies added an extra 11 million barrels of working storage capacity for crude oil between March and September, according to the U.S. Energy Information Administration. Since September 2011, total capacity for storing crude in the United States has expanded by almost 87 million barrels, 19 percent, the EIA reported on Monday ("Working and Net Available Shell Storage Capacity" Nov. 30). Most of the extra capacity has been added at tank farms and other offsite locations (+84 million barrels) rather than refineries (+2.5 million barrels) where space is often constrained.
Oil Rallies as Hopes Grow for Output Cut
Oil rallied to four-month highs on Thursday, underpinned by a surprisingly large drop in U.S. inventory levels the previous day and by growing expectations for the world's largest producers to agree to cut supply. Brent crude futures were last up 55 cents on the day at $52.41 a barrel by 1408 GMT, having risen to a session peak of $52.65, the highest in four months. U.S. futures rose 46 cents to $50.29 a barrel, having broken above $50 for the first time since June this year. A number of OPEC oil ministers plus Russia's energy minister set to attend an energy conference in Istanbul are expected to meet together informally although they are unlikely to make any new decisions, OPEC sources said.
OW Bunker Begins US West Coast Operations
OW Bunker has confirmed that its newly established physical distribution operation in Los Angeles and Long Beach, California, is now fully operational. The company’s first physical delivery was made to the containership CMA CGM Norma from the double-hulled barge Lily Blair earlier this month. Since then, OW Bunker has completed more deliveries as part of its service that covers the ports of Los Angeles and Long Beach and offers a full range of quality products, including RMG380 (HSFO and LSFO), RMK500, RMK700 and MGO.
Brent Crude Slips Towards US$102
Brent crude fell towards $102 a barrel on Tuesday on concerns of slowing oil demand growth due to weak economic recoveries in China and Europe, although new unrest in OPEC oil producer Libya kept losses in check. Euro zone manufacturing growth slowed slightly more than initially thought in August, while growth in China's factory sector slipped to a three-month low last month, adding to concerns about oil demand. Brent prices have trended higher since mid-August as speculators have come back into the market following a drop of nearly $15 to around $101 a barrel over the previous two months.
Rutter Acquires OceanWaveS GmbH
Acquisition combines leaders in marine radar signal processing. Rutter Inc. (TSX: RUT) is pleased to announce it has acquired OceanWaveS GmbH of Lüneburg, Germany, a recognized industry leader in the development and supply of radar-based wave and surface current measurement technology. Rutter’s sigma S6 and OceanWaveS’ WaMoS are respected within the industry for discrimination of ice, oil, small targets, waves, currents and bathymetry from conventional navigational X-band radar. Combining OceanWaveS’ wave and current measuring capabilities with Rutter’s sigma S6 Ice Navigator will give Rutter a competitive edge in a growing offshore and coastal monitoring market.
MXB Begins Physical Operations in Mumbai
Matrix Bharat Pte. Ltd. (MXB), a supplier of marine fuels in India, has begun physical operations in Mumbai. In conjunction with this, MXB has commenced operations on Jawahar Dweep, an island off the southeastern coast of Mumbai. MXB is a joint venture between Matrix Marine Fuels and Bharat Petroleum Corporation Ltd. (BPCL), one of India’s largest PSU (state owned) oil refining and marketing companies. The company will provide physical products at Mumbai’s Outer Port Limits (OPL), servicing vessels that are waiting to berth, as well as vessels making bunker-only-calls.
OW Bunker, Petrocosta Collaborate in Latin America
OW Bunker has entered into a partnership with Petrocosta CI SA, a Colombian fuel marketing and transportation company. The agreement will further develop OW Bunker’s physical distribution network of marine fuel in Colombia and support its growth across Latin America. Petrocosta’s responsibilities will include the sourcing, blending, storage and transportation of marine fuel products. OW Bunker will handle the sale and marketing of products through its existing network, as well as provide risk management and other related services. A full range of high quality marine fuels, including low sulfur fuel oil, marine gas oil, and various lubricants will be initially available in Cartagena through the partnership…