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.
|
|
Tuesday, 12 May 20
A GLOBAL ECONOMIC RESTART HAS SLOWLY BEGUN AS COUNTRIES AROUND THE WORLD GRADUALLY - ALLIED
A global economic restart has slowly begun as countries around the world gradually set their return back to “normality”. Yet by all mea ...
Tuesday, 12 May 20
CAN INDONESIA'S COAL INDUSTRY SURVIVE COVID-19? : IEEFA
Pandemic Lockdown and Slumping Prices Put Extreme Pressure on Coal Miners
Executive Summary
While attention has been focused on th ...
Tuesday, 12 May 20
INDIA'S COAL PRODUCTION TO CLOCK RECORD 700 MILLION TONNES IN FY21: COAL SECRETARY - PTI
Coal Secretary Anil Jain said FY20 coal production was lower than the target of 660 million tonnes because of flooding of a key coal mine.
&nbs ...
Monday, 11 May 20
CHINA'S BENCHMARK POWER COAL PRICE DROPS SLIGHTLY - XINHUA
China’s benchmark power coal price dropped slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge ...
Monday, 11 May 20
CORONAVIRUS PUTS MORE THAN A THIRD OF SEABORNE COAL SUPPLY AT RISK - WOOD MACKENZIE
The full impact of the coronavirus outbreak on the global economy is yet unclear. However, the demand destruction is already becoming evident, with ...
|
|
|
Showing 971 to 975 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Antam Resourcindo - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Eastern Energy - Thailand
- Parliament of New Zealand
- Salva Resources Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Thai Mozambique Logistica
- European Bulk Services B.V. - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Pendopo Energi Batubara - Indonesia
- CIMB Investment Bank - Malaysia
- Independent Power Producers Association of India
- Chettinad Cement Corporation Ltd - India
- Lanco Infratech Ltd - India
- Kartika Selabumi Mining - Indonesia
- Baramulti Group, Indonesia
- Marubeni Corporation - India
- Kapuas Tunggal Persada - Indonesia
- Meralco Power Generation, Philippines
- Orica Australia Pty. Ltd.
- Vizag Seaport Private Limited - India
- IEA Clean Coal Centre - UK
- Bhushan Steel Limited - India
- Parry Sugars Refinery, India
- Therma Luzon, Inc, Philippines
- Australian Coal Association
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- South Luzon Thermal Energy Corporation
- Thiess Contractors Indonesia
- Medco Energi Mining Internasional
- Ministry of Finance - Indonesia
- Essar Steel Hazira Ltd - India
- Karaikal Port Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Planning Commission, India
- Neyveli Lignite Corporation Ltd, - India
- The University of Queensland
- Binh Thuan Hamico - Vietnam
- London Commodity Brokers - England
- Oldendorff Carriers - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Offshore Bulk Terminal Pte Ltd, Singapore
- McConnell Dowell - Australia
- Rashtriya Ispat Nigam Limited - India
- Wood Mackenzie - Singapore
- GAC Shipping (India) Pvt Ltd
- Directorate General of MIneral and Coal - Indonesia
- Tamil Nadu electricity Board
- Gujarat Sidhee Cement - India
- Xindia Steels Limited - India
- VISA Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Georgia Ports Authority, United States
- Indonesian Coal Mining Association
- Bulk Trading Sa - Switzerland
- Sindya Power Generating Company Private Ltd
- Jaiprakash Power Ventures ltd
- TNB Fuel Sdn Bhd - Malaysia
- Kideco Jaya Agung - Indonesia
- Chamber of Mines of South Africa
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- GMR Energy Limited - India
- Power Finance Corporation Ltd., India
- Carbofer General Trading SA - India
- Timah Investasi Mineral - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Heidelberg Cement - Germany
- Interocean Group of Companies - India
- Agrawal Coal Company - India
- Bukit Baiduri Energy - Indonesia
- Altura Mining Limited, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- San Jose City I Power Corp, Philippines
- Mercator Lines Limited - India
- Central Electricity Authority - India
- Barasentosa Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- Alfred C Toepfer International GmbH - Germany
- Kumho Petrochemical, South Korea
- Sree Jayajothi Cements Limited - India
- Tata Chemicals Ltd - India
- Uttam Galva Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Sarangani Energy Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Latin American Coal - Colombia
- Bangladesh Power Developement Board
- Petrochimia International Co. Ltd.- Taiwan
- Madhucon Powers Ltd - India
- Economic Council, Georgia
- Manunggal Multi Energi - Indonesia
- Borneo Indobara - Indonesia
- Toyota Tsusho Corporation, Japan
- Karbindo Abesyapradhi - Indoneisa
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- SN Aboitiz Power Inc, Philippines
- SMC Global Power, Philippines
- Aditya Birla Group - India
- Bhatia International Limited - India
- Metalloyd Limited - United Kingdom
- Global Coal Blending Company Limited - Australia
- Simpson Spence & Young - Indonesia
- Romanian Commodities Exchange
- Commonwealth Bank - Australia
- Samtan Co., Ltd - South Korea
- Posco Energy - South Korea
- Mercuria Energy - Indonesia
- Coal and Oil Company - UAE
- Kalimantan Lumbung Energi - Indonesia
- The Treasury - Australian Government
- Minerals Council of Australia
- Indian Energy Exchange, India
- Sinarmas Energy and Mining - Indonesia
- CNBM International Corporation - China
- ASAPP Information Group - India
- Energy Development Corp, Philippines
- Australian Commodity Traders Exchange
- Anglo American - United Kingdom
- Indika Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Cement Manufacturers Association - India
- Indian Oil Corporation Limited
- MS Steel International - UAE
- Petron Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Goldman Sachs - Singapore
- LBH Netherlands Bv - Netherlands
- Riau Bara Harum - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- PTC India Limited - India
- TeaM Sual Corporation - Philippines
- Billiton Holdings Pty Ltd - Australia
- Globalindo Alam Lestari - Indonesia
- Jindal Steel & Power Ltd - India
- International Coal Ventures Pvt Ltd - India
- Videocon Industries ltd - India
- Merrill Lynch Commodities Europe
- Electricity Authority, New Zealand
- Straits Asia Resources Limited - Singapore
- Makarim & Taira - Indonesia
- Bhoruka Overseas - Indonesia
- Global Business Power Corporation, Philippines
- Eastern Coal Council - USA
- Standard Chartered Bank - UAE
- Coastal Gujarat Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Kaltim Prima Coal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Edison Trading Spa - Italy
- Grasim Industreis Ltd - India
- Coalindo Energy - Indonesia
- Siam City Cement - Thailand
- Intertek Mineral Services - Indonesia
- Energy Link Ltd, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Malabar Cements Ltd - India
- Iligan Light & Power Inc, Philippines
- Star Paper Mills Limited - India
- Meenaskhi Energy Private Limited - India
- Vedanta Resources Plc - India
- Mjunction Services Limited - India
- New Zealand Coal & Carbon
- PowerSource Philippines DevCo
- Savvy Resources Ltd - HongKong
- Ind-Barath Power Infra Limited - India
- Port Waratah Coal Services - Australia
- Renaissance Capital - South Africa
- Trasteel International SA, Italy
- Ambuja Cements Ltd - India
- GVK Power & Infra Limited - India
- SMG Consultants - Indonesia
- Rio Tinto Coal - Australia
- Formosa Plastics Group - Taiwan
- Krishnapatnam Port Company Ltd. - India
- Gujarat Electricity Regulatory Commission - India
- Singapore Mercantile Exchange
- Orica Mining Services - Indonesia
- Wilmar Investment Holdings
- Banpu Public Company Limited - Thailand
- Kobexindo Tractors - Indoneisa
- Global Green Power PLC Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Ministry of Mines - Canada
- Gujarat Mineral Development Corp Ltd - India
- Attock Cement Pakistan Limited
- PNOC Exploration Corporation - Philippines
- Central Java Power - Indonesia
- Semirara Mining Corp, Philippines
- Dalmia Cement Bharat India
- OPG Power Generation Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Deloitte Consulting - India
- Sakthi Sugars Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Mintek Dendrill Indonesia
- Directorate Of Revenue Intelligence - India
- White Energy Company Limited
- Electricity Generating Authority of Thailand
- Maheswari Brothers Coal Limited - India
- Larsen & Toubro Limited - India
- AsiaOL BioFuels Corp., Philippines
- India Bulls Power Limited - India
- Africa Commodities Group - South Africa
- Sical Logistics Limited - India
- Indogreen Group - Indonesia
- ICICI Bank Limited - India
|
| |
| |
|
