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.
|
|
Saturday, 09 May 20
ANGLO AMERICAN CONSIDERS SPINNING OFF SOUTH AFRICAN COAL OPERATIONS - REUTERS
Diversified miner Anglo American said on Thursday it prefers unbundling and listing its thermal coal operations in South Africa on the Johannesburg ...
Friday, 08 May 20
THE COLLAPSE OF THE OIL AND BUNKER FUEL MARKETS IN EARLY 2020 - PETER SAND
The sulphur regulation from the International Maritime Organization (IMO) that came into force on 1 January 2020 took the centre stage in the shipp ...
Friday, 08 May 20
LNG DEMAND FACED SEVERAL HEADWINDS IN THE FIRST QUARTER OF 2020 - GASLOG
LNG demand faced several headwinds in the first quarter of 2020 including a warmer than average winter in the northern hemisphere, high inventory l ...
Thursday, 07 May 20
IEEFA UPDATE: THE OUTLOOK FOR THERMAL COAL IN SOUTHEAST ASIA AND SOUTH ASIA
Seven headwinds are building to sustained growth in coal in Asia
The medium term outlook for thermal coal in Southeast Asia is posit ...
Thursday, 07 May 20
IMO 2020: BUNKER CLAIMS HANDLING GUIDE FOR A NEW DECADE - THE STANDARD CLUB
KNOWLEDGE TO ELEVATE
IMO 2020 is the term generally used to describe the following regulations under Annex VI of the International Convention ...
|
|
|
Showing 976 to 980 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bukit Baiduri Energy - Indonesia
- Banpu Public Company Limited - Thailand
- San Jose City I Power Corp, Philippines
- ICICI Bank Limited - India
- Gujarat Sidhee Cement - India
- Jaiprakash Power Ventures ltd
- McConnell Dowell - Australia
- GVK Power & Infra Limited - India
- Oldendorff Carriers - Singapore
- Altura Mining Limited, Indonesia
- Madhucon Powers Ltd - India
- Global Coal Blending Company Limited - Australia
- Tamil Nadu electricity Board
- White Energy Company Limited
- Formosa Plastics Group - Taiwan
- Indogreen Group - Indonesia
- Power Finance Corporation Ltd., India
- Coalindo Energy - Indonesia
- The University of Queensland
- Kobexindo Tractors - Indoneisa
- Wood Mackenzie - Singapore
- Globalindo Alam Lestari - Indonesia
- Timah Investasi Mineral - Indoneisa
- Price Waterhouse Coopers - Russia
- Borneo Indobara - Indonesia
- Aditya Birla Group - India
- Thiess Contractors Indonesia
- Bukit Makmur.PT - Indonesia
- Anglo American - United Kingdom
- Holcim Trading Pte Ltd - Singapore
- Marubeni Corporation - India
- Global Green Power PLC Corporation, Philippines
- Antam Resourcindo - Indonesia
- Sojitz Corporation - Japan
- Electricity Generating Authority of Thailand
- Indonesian Coal Mining Association
- Central Java Power - Indonesia
- Iligan Light & Power Inc, Philippines
- SN Aboitiz Power Inc, Philippines
- Dalmia Cement Bharat India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Central Electricity Authority - India
- TNB Fuel Sdn Bhd - Malaysia
- Rashtriya Ispat Nigam Limited - India
- Savvy Resources Ltd - HongKong
- Malabar Cements Ltd - India
- Africa Commodities Group - South Africa
- Krishnapatnam Port Company Ltd. - India
- Latin American Coal - Colombia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Transport, Egypt
- London Commodity Brokers - England
- Goldman Sachs - Singapore
- Independent Power Producers Association of India
- Jorong Barutama Greston.PT - Indonesia
- Standard Chartered Bank - UAE
- Singapore Mercantile Exchange
- Barasentosa Lestari - Indonesia
- Kepco SPC Power Corporation, Philippines
- Siam City Cement - Thailand
- India Bulls Power Limited - India
- Meenaskhi Energy Private Limited - India
- Kapuas Tunggal Persada - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Orica Australia Pty. Ltd.
- International Coal Ventures Pvt Ltd - India
- The Treasury - Australian Government
- Coastal Gujarat Power Limited - India
- PTC India Limited - India
- Aboitiz Power Corporation - Philippines
- Energy Link Ltd, New Zealand
- European Bulk Services B.V. - Netherlands
- Pipit Mutiara Jaya. PT, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Ambuja Cements Ltd - India
- Riau Bara Harum - Indonesia
- Indo Tambangraya Megah - Indonesia
- Edison Trading Spa - Italy
- Directorate Of Revenue Intelligence - India
- Neyveli Lignite Corporation Ltd, - India
- Sarangani Energy Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Simpson Spence & Young - Indonesia
- Port Waratah Coal Services - Australia
- Kalimantan Lumbung Energi - Indonesia
- Mercator Lines Limited - India
- Bayan Resources Tbk. - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Electricity Authority, New Zealand
- Indian Energy Exchange, India
- Therma Luzon, Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Cigading International Bulk Terminal - Indonesia
- SMG Consultants - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Mjunction Services Limited - India
- Cement Manufacturers Association - India
- Posco Energy - South Korea
- IHS Mccloskey Coal Group - USA
- Planning Commission, India
- Eastern Coal Council - USA
- Grasim Industreis Ltd - India
- Interocean Group of Companies - India
- Larsen & Toubro Limited - India
- GAC Shipping (India) Pvt Ltd
- Baramulti Group, Indonesia
- Manunggal Multi Energi - Indonesia
- New Zealand Coal & Carbon
- Trasteel International SA, Italy
- Commonwealth Bank - Australia
- Videocon Industries ltd - India
- Leighton Contractors Pty Ltd - Australia
- Kartika Selabumi Mining - Indonesia
- Romanian Commodities Exchange
- Pendopo Energi Batubara - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Sindya Power Generating Company Private Ltd
- Sree Jayajothi Cements Limited - India
- Ministry of Mines - Canada
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Lanco Infratech Ltd - India
- Chettinad Cement Corporation Ltd - India
- Salva Resources Pvt Ltd - India
- MS Steel International - UAE
- Parliament of New Zealand
- Chamber of Mines of South Africa
- Mercuria Energy - Indonesia
- Coal and Oil Company - UAE
- Petron Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Binh Thuan Hamico - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Essar Steel Hazira Ltd - India
- Global Business Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Georgia Ports Authority, United States
- Gujarat Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- Maharashtra Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Wilmar Investment Holdings
- Metalloyd Limited - United Kingdom
- TeaM Sual Corporation - Philippines
- Toyota Tsusho Corporation, Japan
- PowerSource Philippines DevCo
- OPG Power Generation Pvt Ltd - India
- Deloitte Consulting - India
- IEA Clean Coal Centre - UK
- Uttam Galva Steels Limited - India
- Makarim & Taira - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- GMR Energy Limited - India
- Heidelberg Cement - Germany
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kideco Jaya Agung - Indonesia
- Jindal Steel & Power Ltd - India
- Australian Coal Association
- Parry Sugars Refinery, India
- Merrill Lynch Commodities Europe
- CNBM International Corporation - China
- Bhushan Steel Limited - India
- Maheswari Brothers Coal Limited - India
- ASAPP Information Group - India
- Bulk Trading Sa - Switzerland
- Sinarmas Energy and Mining - Indonesia
- Indika Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Oil Corporation Limited
- Minerals Council of Australia
- Agrawal Coal Company - India
- LBH Netherlands Bv - Netherlands
- South Luzon Thermal Energy Corporation
- Orica Mining Services - Indonesia
- Attock Cement Pakistan Limited
- SMC Global Power, Philippines
- Economic Council, Georgia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Karaikal Port Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- AsiaOL BioFuels Corp., Philippines
- Rio Tinto Coal - Australia
- The State Trading Corporation of India Ltd
- Medco Energi Mining Internasional
- Energy Development Corp, Philippines
- Siam City Cement PLC, Thailand
- Mintek Dendrill Indonesia
- Kumho Petrochemical, South Korea
- Sical Logistics Limited - India
- Bangladesh Power Developement Board
- Kohat Cement Company Ltd. - Pakistan
- Carbofer General Trading SA - India
- Australian Commodity Traders Exchange
- Tata Chemicals Ltd - India
- VISA Power Limited - India
- Kaltim Prima Coal - Indonesia
- Bhoruka Overseas - Indonesia
- Semirara Mining Corp, Philippines
- Xindia Steels Limited - India
- Vedanta Resources Plc - India
- Bahari Cakrawala Sebuku - Indonesia
- Bharathi Cement Corporation - India
- Sakthi Sugars Limited - India
- Thai Mozambique Logistica
- Bhatia International Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Vizag Seaport Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- Star Paper Mills Limited - India
- Intertek Mineral Services - Indonesia
- Eastern Energy - Thailand
- Straits Asia Resources Limited - Singapore
- PNOC Exploration Corporation - Philippines
- Meralco Power Generation, Philippines
- PetroVietnam Power Coal Import and Supply Company
|
| |
| |
|
