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.
|
|
Thursday, 21 May 20
KOMIPO INVITED BIDS FOR TOTAL 610000 MT OF LCV AND HCV COAL FOR 2H 2020
COALspot.com: South Korea’s Korea Midland Power Co. Ltd. (KOMIPO) has Issued an International Tender for 130,000 mt of 5700 NCV coal an ...
Wednesday, 20 May 20
ADARO ENERGY BOOKED A 5% INCREASE IN COAL PRODUCTION VOLUME Y-O-Y IN 1Q2020
PT. Adaro Energy Tbk, Indonesia’s one of the largest coal miner, booked a 5% increase in coal production volume year-over-year in 1Q2020. The ...
Wednesday, 20 May 20
BRAZIL SOYBEAN EXPORTS HAVE BEEN SURGING THIS YEAR - BANCHERO COSTA
Brazil soybean exports have been surging this year, thanks to a combination of strong demand from China, a bumper crop, and favourable exchange rat ...
Wednesday, 20 May 20
MARKET INSIGHT
Seafarers keep maritime trade going so that the food, raw materials, energy and manufactured goods on which so many depend can continue moving arou ...
Tuesday, 19 May 20
AMENDMENT OF THE INDONESIAN MINING LAW: TYING UP LOOSE ENDS - UMBRA
KNOWLEDGE TO ELEVATE
The finalized draft of Law on the amendment of the Mining Law (Bill) was publicly released on 11 May 2020 and was then ap ...
|
|
|
Showing 956 to 960 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Billiton Holdings Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Karaikal Port Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Binh Thuan Hamico - Vietnam
- Globalindo Alam Lestari - Indonesia
- Savvy Resources Ltd - HongKong
- Ministry of Finance - Indonesia
- Interocean Group of Companies - India
- Australian Coal Association
- Indian Oil Corporation Limited
- Meenaskhi Energy Private Limited - India
- Bangladesh Power Developement Board
- Mjunction Services Limited - India
- Energy Development Corp, Philippines
- IHS Mccloskey Coal Group - USA
- Indian Energy Exchange, India
- Goldman Sachs - Singapore
- Orica Australia Pty. Ltd.
- Jaiprakash Power Ventures ltd
- Parliament of New Zealand
- Rio Tinto Coal - Australia
- Sojitz Corporation - Japan
- Simpson Spence & Young - Indonesia
- Bulk Trading Sa - Switzerland
- The Treasury - Australian Government
- Orica Mining Services - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Aditya Birla Group - India
- Deloitte Consulting - India
- Dalmia Cement Bharat India
- Merrill Lynch Commodities Europe
- GVK Power & Infra Limited - India
- Riau Bara Harum - Indonesia
- Indogreen Group - Indonesia
- Posco Energy - South Korea
- Asmin Koalindo Tuhup - Indonesia
- Global Business Power Corporation, Philippines
- Chamber of Mines of South Africa
- TeaM Sual Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
- Petron Corporation, Philippines
- Bhushan Steel Limited - India
- SN Aboitiz Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- PTC India Limited - India
- Renaissance Capital - South Africa
- Chettinad Cement Corporation Ltd - India
- Altura Mining Limited, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- Malabar Cements Ltd - India
- Lanco Infratech Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Pipit Mutiara Jaya. PT, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Grasim Industreis Ltd - India
- Eastern Coal Council - USA
- Pendopo Energi Batubara - Indonesia
- LBH Netherlands Bv - Netherlands
- Salva Resources Pvt Ltd - India
- SMC Global Power, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Economic Council, Georgia
- Sical Logistics Limited - India
- New Zealand Coal & Carbon
- GMR Energy Limited - India
- Independent Power Producers Association of India
- Carbofer General Trading SA - India
- Jindal Steel & Power Ltd - India
- Electricity Generating Authority of Thailand
- Coal and Oil Company - UAE
- Formosa Plastics Group - Taiwan
- Semirara Mining and Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Gujarat Sidhee Cement - India
- Sindya Power Generating Company Private Ltd
- Mintek Dendrill Indonesia
- Africa Commodities Group - South Africa
- South Luzon Thermal Energy Corporation
- Agrawal Coal Company - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Siam City Cement PLC, Thailand
- Madhucon Powers Ltd - India
- Samtan Co., Ltd - South Korea
- AsiaOL BioFuels Corp., Philippines
- Medco Energi Mining Internasional
- Kartika Selabumi Mining - Indonesia
- Anglo American - United Kingdom
- Antam Resourcindo - Indonesia
- Australian Commodity Traders Exchange
- OPG Power Generation Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- Iligan Light & Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- Sarangani Energy Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Vedanta Resources Plc - India
- CIMB Investment Bank - Malaysia
- Ministry of Transport, Egypt
- Standard Chartered Bank - UAE
- Global Coal Blending Company Limited - Australia
- Straits Asia Resources Limited - Singapore
- Xindia Steels Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Kobexindo Tractors - Indoneisa
- Georgia Ports Authority, United States
- Karbindo Abesyapradhi - Indoneisa
- Parry Sugars Refinery, India
- Marubeni Corporation - India
- European Bulk Services B.V. - Netherlands
- Maheswari Brothers Coal Limited - India
- Singapore Mercantile Exchange
- McConnell Dowell - Australia
- International Coal Ventures Pvt Ltd - India
- Eastern Energy - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Trasteel International SA, Italy
- Uttam Galva Steels Limited - India
- Baramulti Group, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Bhatia International Limited - India
- Indika Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate Of Revenue Intelligence - India
- Kumho Petrochemical, South Korea
- Kalimantan Lumbung Energi - Indonesia
- Central Electricity Authority - India
- Commonwealth Bank - Australia
- Planning Commission, India
- Ceylon Electricity Board - Sri Lanka
- Miang Besar Coal Terminal - Indonesia
- Power Finance Corporation Ltd., India
- GAC Shipping (India) Pvt Ltd
- Videocon Industries ltd - India
- CNBM International Corporation - China
- Indo Tambangraya Megah - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Romanian Commodities Exchange
- Neyveli Lignite Corporation Ltd, - India
- Oldendorff Carriers - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Minerals Council of Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bharathi Cement Corporation - India
- Gujarat Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- SMG Consultants - Indonesia
- Mercuria Energy - Indonesia
- Meralco Power Generation, Philippines
- The University of Queensland
- Manunggal Multi Energi - Indonesia
- Thai Mozambique Logistica
- Ministry of Mines - Canada
- Coalindo Energy - Indonesia
- Sakthi Sugars Limited - India
- VISA Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Timah Investasi Mineral - Indoneisa
- Port Waratah Coal Services - Australia
- Ambuja Cements Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- ICICI Bank Limited - India
- Bukit Baiduri Energy - Indonesia
- Wilmar Investment Holdings
- Sinarmas Energy and Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Vizag Seaport Private Limited - India
- Mercator Lines Limited - India
- Semirara Mining Corp, Philippines
- Electricity Authority, New Zealand
- Bhoruka Overseas - Indonesia
- Wood Mackenzie - Singapore
- Siam City Cement - Thailand
- Attock Cement Pakistan Limited
- Tata Chemicals Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Larsen & Toubro Limited - India
- Tamil Nadu electricity Board
- Coastal Gujarat Power Limited - India
- Edison Trading Spa - Italy
- Borneo Indobara - Indonesia
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Indonesian Coal Mining Association
- White Energy Company Limited
- Kepco SPC Power Corporation, Philippines
- Central Java Power - Indonesia
- Cement Manufacturers Association - India
- Barasentosa Lestari - Indonesia
- Thiess Contractors Indonesia
- Jorong Barutama Greston.PT - Indonesia
- The State Trading Corporation of India Ltd
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- IEA Clean Coal Centre - UK
- PowerSource Philippines DevCo
- Heidelberg Cement - Germany
- Latin American Coal - Colombia
- London Commodity Brokers - England
- San Jose City I Power Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Leighton Contractors Pty Ltd - Australia
- Banpu Public Company Limited - Thailand
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Star Paper Mills Limited - India
- Bukit Makmur.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- Essar Steel Hazira Ltd - India
- ASAPP Information Group - India
|
| |
| |
|
