We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Friday, 20 March 20
VOLATILITY TO INCREASE IN TANKER MARKET FOLLOWING OIL PRICE WAR - DREWRY
Crude oil prices plunged by more than a third in the past week after OPEC+ failed to agree on production cut as demand softened in the aftermath of coronavirus (COVID-19). In its recent report, the IEA estimates global oil demand at 99.9 mbpd in 2020, which is around 90,000 bpd lower than in 2019 and a sharp downgrade from the agency’s forecast in February, which predicted global oil demand will grow 825,000 bpd in 2020.
The market expected OPEC+ to cut supply as the COVID-19 epidemic has spread from China to Europe, the Americas and Middle East. However, the negotiations failed due to strong resistance from Russia, which is of the view that the policy of capping production by OPEC+ producers to support the oil price is facilitating the development of US shale oil, with Russia losing its market share to increasing exports from the US.
After the failure of production cut talks in Vienna, Saudi Arabia started a price war by slashing the official selling prices for crude for key buyers in the international market and hinted at raising crude oil production to full capacity of 12.3 mbpd from April 2020. The ‘shock and awe’ tactics of Saudi Arabia could be a move to impose maximum pain in the quickest possible way to Russia and other producers, in an effort to renegotiate the proposed production cut and then quickly reverse the production surge and thereafter implement the production cut if a deal is reached.
However, the recent move by Saudi Arabia could lead to:
a) Renegotiation on a production cut between OPEC and Russia
b) Prolonged price war between OPEC, Russia and US producers
If there are fresh negotiations to implement a production cut by OPEC+ producers to accommodate the effect of declining oil demand, crude oil prices are expected to normalise.
But if there is a prolonged price war between Saudi Arabia, Russia and US shale oil producers, lower crude oil prices will lead to some improvement in global oil demand and refinery runs. At the same time, onshore stocking activity will also increase, especially in countries such as China as they build their Strategic Petroleum Reserve. A global supply glut is also likely to lead to an increase in floating storage especially among oil producers.
At the same time, sustained weakness in oil prices will eventually hurt US shale oil producers because of their relatively higher cost of production. In such circumstances, the market share of Middle Eastern crude will increase at the expense of US crude.
Meanwhile, tanker rates surged due to a sudden increase in VLCC chartering from Bahri, Saudi Arabia’s national shipping arm. Bahri fixed at least 18 VLCCs since the Kingdom aims to pump more crude into the market as its price war with Russia escalates. The VLCC earnings on Middle East–China (TD3C) route skyrocketed to $166,000pd on 11 March from $30,300pd on 06 March.
If Saudi Arabia manages to strike a deal with Russia to cut production in the short term, tanker rates will plummet to the pre-price war levels because of the ongoing weakness in crude oil trade on account of the spread of COVID-19 globally. On the other hand, if there is a prolonged price war, tonnage demand will rise initially with the increase in oil demand and stocking activity, which in turn will keep freight rates above pre-price war levels.
However, once sustained weakness in oil prices starts hurting US crude production, Middle Eastern crude will start displacing US crude in Asia. This in turn will squeeze tonne-mile demand for tankers as the distance between the US to Asia is almost double the distance between the Middle East to Asia. Thus we estimate that every barrel per day of annual decline in US exports to Asia at the expense of the Middle East will lead to about a 2.5% decline in overall tonne-mile demand for tankers. Freight rates in such a situation will plunge below the pre-price war levels.
Source: Drewry
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 27 May 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.94 PCT - XINHUA
China Taiyuan coal transaction price index stood at 125.03 points Monday, up 0.94 percent week on week.
The index, released by China ...
Monday, 25 May 20
NON-OPEC OIL SUPPLY DEVELOPMENT - OPEC
Non-OPEC oil supply continued to increase by 2.0 mb/d in 2019, driven by US shale production, which rose by 1.7 mb/d, amounting to 84% of total non ...
Sunday, 24 May 20
A 63,000 FIXED DELIVERY VIETNAM TRIP VIA INDONESIA REDELIVERY KOSICHANG AT $8,500 - BALTIC BRIEFING
Capesize
After a week of bounce momentum the market appears to have stalled out once again. The Capesize 5TC has more than doubled since last F ...
Saturday, 23 May 20
COLOMBIA COAL OUTPUT DOWN 7.2% IN Q1 ON LOW PRICES, CORONAVIRUS LOCKDOWN - REUTERS
Coal production in Colombia, the world’s fifth-largest coal exporter, fell 7.2% in the first quarter because of low prices and coronavirus qu ...
Saturday, 23 May 20
EWP INVITES BIDS FOR 840,000 METRIC TONS OF MIN 5700 NAR COAL
COALspot.com: South Korea’s Korea East-West Power Co. Ltd (EWP) has Issued an International Tender for total Max 840,000 Metric Tons of min 5 ...
|
|
|
Showing 951 to 955 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Petrochimia International Co. Ltd.- Taiwan
- Neyveli Lignite Corporation Ltd, - India
- Indonesian Coal Mining Association
- Coastal Gujarat Power Limited - India
- Romanian Commodities Exchange
- The University of Queensland
- Dalmia Cement Bharat India
- Gujarat Electricity Regulatory Commission - India
- GAC Shipping (India) Pvt Ltd
- Meralco Power Generation, Philippines
- Posco Energy - South Korea
- Madhucon Powers Ltd - India
- Bangladesh Power Developement Board
- OPG Power Generation Pvt Ltd - India
- Singapore Mercantile Exchange
- Eastern Energy - Thailand
- Simpson Spence & Young - Indonesia
- Kumho Petrochemical, South Korea
- Tata Chemicals Ltd - India
- Barasentosa Lestari - Indonesia
- Ministry of Mines - Canada
- Maheswari Brothers Coal Limited - India
- Miang Besar Coal Terminal - Indonesia
- Petron Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Siam City Cement PLC, Thailand
- PTC India Limited - India
- Edison Trading Spa - Italy
- Australian Coal Association
- Grasim Industreis Ltd - India
- Latin American Coal - Colombia
- San Jose City I Power Corp, Philippines
- Xindia Steels Limited - India
- Interocean Group of Companies - India
- PetroVietnam Power Coal Import and Supply Company
- Lanco Infratech Ltd - India
- ICICI Bank Limited - India
- Sinarmas Energy and Mining - Indonesia
- SN Aboitiz Power Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Merrill Lynch Commodities Europe
- Indika Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- Aditya Birla Group - India
- Binh Thuan Hamico - Vietnam
- Jaiprakash Power Ventures ltd
- Indo Tambangraya Megah - Indonesia
- Ambuja Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- Parliament of New Zealand
- McConnell Dowell - Australia
- Straits Asia Resources Limited - Singapore
- Rio Tinto Coal - Australia
- Kohat Cement Company Ltd. - Pakistan
- Directorate Of Revenue Intelligence - India
- Sree Jayajothi Cements Limited - India
- Mercuria Energy - Indonesia
- Ministry of Transport, Egypt
- Altura Mining Limited, Indonesia
- Australian Commodity Traders Exchange
- Indian Energy Exchange, India
- Pipit Mutiara Jaya. PT, Indonesia
- Salva Resources Pvt Ltd - India
- The Treasury - Australian Government
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- LBH Netherlands Bv - Netherlands
- Holcim Trading Pte Ltd - Singapore
- Orica Mining Services - Indonesia
- Meenaskhi Energy Private Limited - India
- Wilmar Investment Holdings
- Sojitz Corporation - Japan
- Carbofer General Trading SA - India
- Orica Australia Pty. Ltd.
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Heidelberg Cement - Germany
- Kalimantan Lumbung Energi - Indonesia
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- CNBM International Corporation - China
- Thiess Contractors Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Toyota Tsusho Corporation, Japan
- Riau Bara Harum - Indonesia
- Malabar Cements Ltd - India
- Thai Mozambique Logistica
- Semirara Mining Corp, Philippines
- Energy Link Ltd, New Zealand
- Antam Resourcindo - Indonesia
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Medco Energi Mining Internasional
- Electricity Generating Authority of Thailand
- Trasteel International SA, Italy
- India Bulls Power Limited - India
- Price Waterhouse Coopers - Russia
- Sakthi Sugars Limited - India
- Krishnapatnam Port Company Ltd. - India
- Asmin Koalindo Tuhup - Indonesia
- Global Coal Blending Company Limited - Australia
- Jindal Steel & Power Ltd - India
- White Energy Company Limited
- Bhushan Steel Limited - India
- Videocon Industries ltd - India
- International Coal Ventures Pvt Ltd - India
- Gujarat Sidhee Cement - India
- SMC Global Power, Philippines
- Agrawal Coal Company - India
- European Bulk Services B.V. - Netherlands
- Baramulti Group, Indonesia
- Commonwealth Bank - Australia
- Billiton Holdings Pty Ltd - Australia
- PowerSource Philippines DevCo
- Maharashtra Electricity Regulatory Commission - India
- Bayan Resources Tbk. - Indonesia
- Attock Cement Pakistan Limited
- Semirara Mining and Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Mineral Development Corp Ltd - India
- Star Paper Mills Limited - India
- Cigading International Bulk Terminal - Indonesia
- Electricity Authority, New Zealand
- Renaissance Capital - South Africa
- ASAPP Information Group - India
- Bukit Makmur.PT - Indonesia
- London Commodity Brokers - England
- Timah Investasi Mineral - Indoneisa
- Banpu Public Company Limited - Thailand
- Metalloyd Limited - United Kingdom
- Kobexindo Tractors - Indoneisa
- Marubeni Corporation - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kartika Selabumi Mining - Indonesia
- Bulk Trading Sa - Switzerland
- Siam City Cement - Thailand
- VISA Power Limited - India
- Mjunction Services Limited - India
- Power Finance Corporation Ltd., India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bahari Cakrawala Sebuku - Indonesia
- CIMB Investment Bank - Malaysia
- Iligan Light & Power Inc, Philippines
- GMR Energy Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Central Java Power - Indonesia
- Mercator Lines Limited - India
- Planning Commission, India
- Eastern Coal Council - USA
- IEA Clean Coal Centre - UK
- Manunggal Multi Energi - Indonesia
- South Luzon Thermal Energy Corporation
- Vizag Seaport Private Limited - India
- Larsen & Toubro Limited - India
- Port Waratah Coal Services - Australia
- Sindya Power Generating Company Private Ltd
- Borneo Indobara - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- PNOC Exploration Corporation - Philippines
- The State Trading Corporation of India Ltd
- Coal and Oil Company - UAE
- Mintek Dendrill Indonesia
- Ceylon Electricity Board - Sri Lanka
- Parry Sugars Refinery, India
- GVK Power & Infra Limited - India
- Uttam Galva Steels Limited - India
- Global Green Power PLC Corporation, Philippines
- Sical Logistics Limited - India
- Samtan Co., Ltd - South Korea
- Africa Commodities Group - South Africa
- TeaM Sual Corporation - Philippines
- Ind-Barath Power Infra Limited - India
- Economic Council, Georgia
- Alfred C Toepfer International GmbH - Germany
- Minerals Council of Australia
- Formosa Plastics Group - Taiwan
- New Zealand Coal & Carbon
- Deloitte Consulting - India
- Bhoruka Overseas - Indonesia
- Kepco SPC Power Corporation, Philippines
- Indogreen Group - Indonesia
- Anglo American - United Kingdom
- Central Electricity Authority - India
- Pendopo Energi Batubara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- Energy Development Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Savvy Resources Ltd - HongKong
- Bharathi Cement Corporation - India
- Independent Power Producers Association of India
- Indian Oil Corporation Limited
- Kapuas Tunggal Persada - Indonesia
- Bhatia International Limited - India
- SMG Consultants - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Karaikal Port Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Standard Chartered Bank - UAE
- Rashtriya Ispat Nigam Limited - India
- Wood Mackenzie - Singapore
- Makarim & Taira - Indonesia
- Georgia Ports Authority, United States
- Intertek Mineral Services - Indonesia
- MS Steel International - UAE
- Ministry of Finance - Indonesia
- Global Business Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Tamil Nadu electricity Board
- Vedanta Resources Plc - India
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
|
| |
| |
|
