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, 07 May 20
CRUDE OIL TANKER EARNINGS DROP 68% IN NINE DAYS - BIMCO
Crude oil tanker earnings have come down sharply in recent weeks with Very Large Crude Carrier (VLCC) earnings from the Middle East Gulf to China d ...
Thursday, 07 May 20
UKRAINE PRODUCES 2.5 MLN TONNES OF COAL IN APRIL - UKRINFORM
Ukraine produced 2.5 million tonnes of coal in April 2020, which is 39% less than planned, according to the Coal Miners Union of Ukraine.
...
Thursday, 07 May 20
INDIA: GOVT TO DO AWAY WITH MANDATORY WASHING OF COAL FOR THERMAL POWER UNITS - BUSINESS STANDARD
The Centre is planning to do away with the mandatory requirement of washing of coal before it is transported to thermal power stations. The Ministr ...
Thursday, 07 May 20
CIL'S SUPPLY TO POWER SECTOR FALLS IN MARCH AMID SLUMP IN COAL DEMAND - PTI
The supply of coal to the power sector by state-owned CIL registered a decline of eight per cent to 42.30 million tonne in March in the wake of slu ...
Thursday, 07 May 20
COAL PRICE REFERENCE FALL SHARPLY IN MAY 2020 DUE TO CORONAVIRUS OUTBREAK
COALspot.com: The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised down the benchmark price of Indonesian thermal ...
|
|
|
Showing 981 to 985 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- ICICI Bank Limited - India
- Essar Steel Hazira Ltd - India
- Heidelberg Cement - Germany
- Global Coal Blending Company Limited - Australia
- Bulk Trading Sa - Switzerland
- Sojitz Corporation - Japan
- Uttam Galva Steels Limited - India
- Port Waratah Coal Services - Australia
- Cigading International Bulk Terminal - Indonesia
- Posco Energy - South Korea
- PNOC Exploration Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- Bharathi Cement Corporation - India
- IEA Clean Coal Centre - UK
- Petron Corporation, Philippines
- Thai Mozambique Logistica
- Bahari Cakrawala Sebuku - Indonesia
- Ind-Barath Power Infra Limited - India
- Singapore Mercantile Exchange
- Global Green Power PLC Corporation, Philippines
- Parliament of New Zealand
- Coalindo Energy - Indonesia
- Cement Manufacturers Association - India
- Eastern Energy - Thailand
- Bukit Baiduri Energy - Indonesia
- Eastern Coal Council - USA
- Samtan Co., Ltd - South Korea
- European Bulk Services B.V. - Netherlands
- Vedanta Resources Plc - India
- Semirara Mining Corp, Philippines
- Economic Council, Georgia
- Bayan Resources Tbk. - Indonesia
- IHS Mccloskey Coal Group - USA
- Kaltim Prima Coal - Indonesia
- Larsen & Toubro Limited - India
- Madhucon Powers Ltd - India
- Kepco SPC Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Barasentosa Lestari - Indonesia
- Kapuas Tunggal Persada - Indonesia
- VISA Power Limited - India
- Siam City Cement - Thailand
- Parry Sugars Refinery, India
- Leighton Contractors Pty Ltd - Australia
- Indogreen Group - Indonesia
- Kideco Jaya Agung - Indonesia
- ASAPP Information Group - India
- Petrochimia International Co. Ltd.- Taiwan
- Borneo Indobara - Indonesia
- Grasim Industreis Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- London Commodity Brokers - England
- Sree Jayajothi Cements Limited - India
- Australian Coal Association
- Kalimantan Lumbung Energi - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Edison Trading Spa - Italy
- Sakthi Sugars Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Deloitte Consulting - India
- Meenaskhi Energy Private Limited - India
- Baramulti Group, Indonesia
- Coastal Gujarat Power Limited - India
- Banpu Public Company Limited - Thailand
- Savvy Resources Ltd - HongKong
- Maheswari Brothers Coal Limited - India
- Kobexindo Tractors - Indoneisa
- Indonesian Coal Mining Association
- The State Trading Corporation of India Ltd
- Sinarmas Energy and Mining - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Ambuja Cements Ltd - India
- Romanian Commodities Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Sidhee Cement - India
- Interocean Group of Companies - India
- Maharashtra Electricity Regulatory Commission - India
- Orica Mining Services - Indonesia
- Lanco Infratech Ltd - India
- Star Paper Mills Limited - India
- Minerals Council of Australia
- AsiaOL BioFuels Corp., Philippines
- Formosa Plastics Group - Taiwan
- Straits Asia Resources Limited - Singapore
- Jindal Steel & Power Ltd - India
- Bhatia International Limited - India
- Rio Tinto Coal - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Ministry of Finance - Indonesia
- San Jose City I Power Corp, Philippines
- Meralco Power Generation, Philippines
- Tamil Nadu electricity Board
- Metalloyd Limited - United Kingdom
- Toyota Tsusho Corporation, Japan
- Siam City Cement PLC, Thailand
- Sical Logistics Limited - India
- Salva Resources Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Independent Power Producers Association of India
- TNB Fuel Sdn Bhd - Malaysia
- Coal and Oil Company - UAE
- Energy Link Ltd, New Zealand
- Georgia Ports Authority, United States
- Standard Chartered Bank - UAE
- Ministry of Mines - Canada
- Renaissance Capital - South Africa
- Karaikal Port Pvt Ltd - India
- CNBM International Corporation - China
- Commonwealth Bank - Australia
- Africa Commodities Group - South Africa
- Manunggal Multi Energi - Indonesia
- Attock Cement Pakistan Limited
- Semirara Mining and Power Corporation, Philippines
- Malabar Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- SMG Consultants - Indonesia
- OPG Power Generation Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Riau Bara Harum - Indonesia
- Wilmar Investment Holdings
- Simpson Spence & Young - Indonesia
- GVK Power & Infra Limited - India
- MS Steel International - UAE
- Sarangani Energy Corporation, Philippines
- Chamber of Mines of South Africa
- White Energy Company Limited
- Miang Besar Coal Terminal - Indonesia
- Wood Mackenzie - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jorong Barutama Greston.PT - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Medco Energi Mining Internasional
- Asmin Koalindo Tuhup - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Marubeni Corporation - India
- SMC Global Power, Philippines
- The Treasury - Australian Government
- Carbofer General Trading SA - India
- GAC Shipping (India) Pvt Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Bhushan Steel Limited - India
- Antam Resourcindo - Indonesia
- Bangladesh Power Developement Board
- Makarim & Taira - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Globalindo Alam Lestari - Indonesia
- Mercator Lines Limited - India
- Jaiprakash Power Ventures ltd
- Central Java Power - Indonesia
- Australian Commodity Traders Exchange
- Trasteel International SA, Italy
- Therma Luzon, Inc, Philippines
- New Zealand Coal & Carbon
- Timah Investasi Mineral - Indoneisa
- Videocon Industries ltd - India
- Thiess Contractors Indonesia
- Mercuria Energy - Indonesia
- Mjunction Services Limited - India
- Central Electricity Authority - India
- Bukit Makmur.PT - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhoruka Overseas - Indonesia
- Agrawal Coal Company - India
- PTC India Limited - India
- Orica Australia Pty. Ltd.
- Xindia Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Tata Chemicals Ltd - India
- Binh Thuan Hamico - Vietnam
- Goldman Sachs - Singapore
- Gujarat Mineral Development Corp Ltd - India
- Dalmia Cement Bharat India
- Electricity Authority, New Zealand
- PowerSource Philippines DevCo
- Aboitiz Power Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Pendopo Energi Batubara - Indonesia
- The University of Queensland
- Electricity Generating Authority of Thailand
- Latin American Coal - Colombia
- GMR Energy Limited - India
- India Bulls Power Limited - India
- Indika Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Vizag Seaport Private Limited - India
- Kumho Petrochemical, South Korea
- McConnell Dowell - Australia
- Intertek Mineral Services - Indonesia
- Ministry of Transport, Egypt
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate Of Revenue Intelligence - India
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Oil Corporation Limited
- Aditya Birla Group - India
- International Coal Ventures Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Indian Energy Exchange, India
- Kohat Cement Company Ltd. - Pakistan
- Planning Commission, India
- Altura Mining Limited, Indonesia
- Anglo American - United Kingdom
- CIMB Investment Bank - Malaysia
- Mintek Dendrill Indonesia
- Energy Development Corp, Philippines
- TeaM Sual Corporation - Philippines
- Price Waterhouse Coopers - Russia
- LBH Netherlands Bv - Netherlands
- Holcim Trading Pte Ltd - Singapore
- Indo Tambangraya Megah - Indonesia
|
| |
| |
|
