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.
|
|
Friday, 10 April 20
INDIA'S BULKS SUPPLY CHAIN TAKES A HIT DURING LOCKDOWN - WOOD MACKENZIE
India is under a three-week lockdown from 25 March to contain the spread of the coronavirus outbreak. Businesses are shut, and the supply chain is ...
Thursday, 09 April 20
SUSPENSION OF WRONGFUL TRADING IN LIGHT OF COVID 19 - WF&W
KNOWLEDGE TO ELEVATE
DIRECTORS’ PERSONAL LIABILITY FOR WRONGFUL TRADING – RELIEF DURING THE CORONAVIRUS CRISIS
As the UK&rsquo ...
Wednesday, 08 April 20
LESSONS LEARNED FROM SCRUBBER INSTALLATION AND OPERATION - ABS
KNOWLEDGE TO ELEVATE
At the beginning of this year, the IMO’s global sulfur cap on marine fuels entered into force and shipowners who ch ...
Wednesday, 08 April 20
MARKET INSIGHT - INTERMODAL
With lockdown measures around the globe tightening during the last weeks of Q1, there is finally a feeling that most countries are slowly but stead ...
Tuesday, 07 April 20
SHIPPING MARKET ANALYSIS - ALLIED
With the first quarter of 2020 now firmly written in the books, it is worth examining what we have witnessed so far in the tanker market. Undoubted ...
|
|
|
Showing 1021 to 1025 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Eastern Energy - Thailand
- Straits Asia Resources Limited - Singapore
- Attock Cement Pakistan Limited
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parry Sugars Refinery, India
- Krishnapatnam Port Company Ltd. - India
- Romanian Commodities Exchange
- Semirara Mining Corp, Philippines
- Kumho Petrochemical, South Korea
- ASAPP Information Group - India
- Malabar Cements Ltd - India
- Agrawal Coal Company - India
- Sojitz Corporation - Japan
- Global Green Power PLC Corporation, Philippines
- Australian Commodity Traders Exchange
- Sarangani Energy Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Samtan Co., Ltd - South Korea
- Medco Energi Mining Internasional
- Price Waterhouse Coopers - Russia
- Kapuas Tunggal Persada - Indonesia
- Vizag Seaport Private Limited - India
- Orica Australia Pty. Ltd.
- Karaikal Port Pvt Ltd - India
- Trasteel International SA, Italy
- Gujarat Mineral Development Corp Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- Kaltim Prima Coal - Indonesia
- Aditya Birla Group - India
- Neyveli Lignite Corporation Ltd, - India
- IEA Clean Coal Centre - UK
- Jindal Steel & Power Ltd - India
- Therma Luzon, Inc, Philippines
- Cement Manufacturers Association - India
- Directorate General of MIneral and Coal - Indonesia
- Meenaskhi Energy Private Limited - India
- GMR Energy Limited - India
- Bukit Baiduri Energy - Indonesia
- Marubeni Corporation - India
- Binh Thuan Hamico - Vietnam
- Wood Mackenzie - Singapore
- Indonesian Coal Mining Association
- Chamber of Mines of South Africa
- LBH Netherlands Bv - Netherlands
- PTC India Limited - India
- Oldendorff Carriers - Singapore
- Siam City Cement PLC, Thailand
- Global Coal Blending Company Limited - Australia
- Timah Investasi Mineral - Indoneisa
- Singapore Mercantile Exchange
- Karbindo Abesyapradhi - Indoneisa
- Baramulti Group, Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Kobexindo Tractors - Indoneisa
- Makarim & Taira - Indonesia
- Xindia Steels Limited - India
- IHS Mccloskey Coal Group - USA
- Savvy Resources Ltd - HongKong
- Ministry of Transport, Egypt
- Ambuja Cements Ltd - India
- Bhushan Steel Limited - India
- PowerSource Philippines DevCo
- Antam Resourcindo - Indonesia
- Tata Chemicals Ltd - India
- Anglo American - United Kingdom
- Coal and Oil Company - UAE
- Bukit Asam (Persero) Tbk - Indonesia
- VISA Power Limited - India
- Central Java Power - Indonesia
- India Bulls Power Limited - India
- Salva Resources Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- GVK Power & Infra Limited - India
- The State Trading Corporation of India Ltd
- Sindya Power Generating Company Private Ltd
- Mintek Dendrill Indonesia
- Intertek Mineral Services - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Bahari Cakrawala Sebuku - Indonesia
- Central Electricity Authority - India
- Semirara Mining and Power Corporation, Philippines
- Eastern Coal Council - USA
- Indian Energy Exchange, India
- Rio Tinto Coal - Australia
- Grasim Industreis Ltd - India
- Tamil Nadu electricity Board
- GAC Shipping (India) Pvt Ltd
- Posco Energy - South Korea
- Lanco Infratech Ltd - India
- Pendopo Energi Batubara - Indonesia
- Ministry of Finance - Indonesia
- Sical Logistics Limited - India
- TeaM Sual Corporation - Philippines
- Gujarat Sidhee Cement - India
- Bhoruka Overseas - Indonesia
- Barasentosa Lestari - Indonesia
- Simpson Spence & Young - Indonesia
- Indogreen Group - Indonesia
- Port Waratah Coal Services - Australia
- Australian Coal Association
- New Zealand Coal & Carbon
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- International Coal Ventures Pvt Ltd - India
- Thiess Contractors Indonesia
- GN Power Mariveles Coal Plant, Philippines
- McConnell Dowell - Australia
- Sinarmas Energy and Mining - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Chettinad Cement Corporation Ltd - India
- Commonwealth Bank - Australia
- White Energy Company Limited
- Manunggal Multi Energi - Indonesia
- Ministry of Mines - Canada
- Georgia Ports Authority, United States
- Banpu Public Company Limited - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kalimantan Lumbung Energi - Indonesia
- Bukit Makmur.PT - Indonesia
- Bharathi Cement Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Jaiprakash Power Ventures ltd
- Renaissance Capital - South Africa
- Coastal Gujarat Power Limited - India
- Planning Commission, India
- Energy Link Ltd, New Zealand
- Orica Mining Services - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bhatia International Limited - India
- European Bulk Services B.V. - Netherlands
- Directorate Of Revenue Intelligence - India
- Meralco Power Generation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Sree Jayajothi Cements Limited - India
- Petron Corporation, Philippines
- Mercuria Energy - Indonesia
- MS Steel International - UAE
- Gujarat Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- Minerals Council of Australia
- Miang Besar Coal Terminal - Indonesia
- Bangladesh Power Developement Board
- Global Business Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Coalindo Energy - Indonesia
- ICICI Bank Limited - India
- Interocean Group of Companies - India
- Thai Mozambique Logistica
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Formosa Plastics Group - Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Star Paper Mills Limited - India
- Larsen & Toubro Limited - India
- PNOC Exploration Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Carbofer General Trading SA - India
- Merrill Lynch Commodities Europe
- Africa Commodities Group - South Africa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Jorong Barutama Greston.PT - Indonesia
- Indika Energy - Indonesia
- London Commodity Brokers - England
- CNBM International Corporation - China
- OPG Power Generation Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- TNB Fuel Sdn Bhd - Malaysia
- Essar Steel Hazira Ltd - India
- Madhucon Powers Ltd - India
- Altura Mining Limited, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Mercator Lines Limited - India
- Standard Chartered Bank - UAE
- SMC Global Power, Philippines
- Kartika Selabumi Mining - Indonesia
- SN Aboitiz Power Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Riau Bara Harum - Indonesia
- The Treasury - Australian Government
- Electricity Generating Authority of Thailand
- Videocon Industries ltd - India
- Ind-Barath Power Infra Limited - India
- Bulk Trading Sa - Switzerland
- Power Finance Corporation Ltd., India
- CIMB Investment Bank - Malaysia
- Leighton Contractors Pty Ltd - Australia
- Parliament of New Zealand
- SMG Consultants - Indonesia
- Siam City Cement - Thailand
- Deloitte Consulting - India
- Mjunction Services Limited - India
- Energy Development Corp, Philippines
- Electricity Authority, New Zealand
- Aboitiz Power Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Dalmia Cement Bharat India
- Vijayanagar Sugar Pvt Ltd - India
- The University of Queensland
- Goldman Sachs - Singapore
- Vedanta Resources Plc - India
- Latin American Coal - Colombia
- Uttam Galva Steels Limited - India
- Independent Power Producers Association of India
- Edison Trading Spa - Italy
- San Jose City I Power Corp, Philippines
- Metalloyd Limited - United Kingdom
- Indian Oil Corporation Limited
- Heidelberg Cement - Germany
- Kohat Cement Company Ltd. - Pakistan
- Toyota Tsusho Corporation, Japan
- Wilmar Investment Holdings
- Kepco SPC Power Corporation, Philippines
- Borneo Indobara - Indonesia
|
| |
| |
|
