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, 28 March 20
ASIA'S COAL MARKETS DIVERGE ON QUALITY LINES AS CORONAVIRUS HITS INDIA - REUTERS
Asia’s seaborne coal market is increasingly diverging between higher-quality Australian coal, where prices are holding up despite the economi ...
Friday, 27 March 20
CHINA'S BULKS: THE SENTIMENT GAP BETWEEN STEEL AND COAL WIDENS - WOOD MACKENZIE
China seems to be containing its local coronavirus situation, with imported cases now posing the greater threat. While quarantine measures remain t ...
Friday, 27 March 20
S.KOREA Q1 THERMAL COAL IMPORTS SET FOR 10-YR LOW ON ANTI-POLLUTION MEASURES - REUTERS
South Korea’s first-quarter thermal coal imports are set to fall to a decade-low due to stricter air pollution measures, while the coronaviru ...
Friday, 27 March 20
PORT OF NEWCASTLE OPERATIONS CONTINUE WITH COVID-19 RESPONSE MEASURES IN PLACE
Port of Newcastle, like many organisations, is taking a precautionary approach to help manage COVID-19 risks in the community. Our focus is on ensu ...
Thursday, 26 March 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 ...
|
|
|
Showing 1041 to 1045 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Parliament of New Zealand
- Trasteel International SA, Italy
- Holcim Trading Pte Ltd - Singapore
- Indonesian Coal Mining Association
- Jorong Barutama Greston.PT - Indonesia
- San Jose City I Power Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Attock Cement Pakistan Limited
- Therma Luzon, Inc, Philippines
- MS Steel International - UAE
- Thiess Contractors Indonesia
- Cement Manufacturers Association - India
- Edison Trading Spa - Italy
- Siam City Cement - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Leighton Contractors Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Renaissance Capital - South Africa
- Minerals Council of Australia
- Planning Commission, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jindal Steel & Power Ltd - India
- Toyota Tsusho Corporation, Japan
- Intertek Mineral Services - Indonesia
- Metalloyd Limited - United Kingdom
- Mintek Dendrill Indonesia
- Samtan Co., Ltd - South Korea
- New Zealand Coal & Carbon
- Ceylon Electricity Board - Sri Lanka
- Power Finance Corporation Ltd., India
- Posco Energy - South Korea
- Deloitte Consulting - India
- Heidelberg Cement - Germany
- Videocon Industries ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Barasentosa Lestari - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coastal Gujarat Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Bharathi Cement Corporation - India
- Kartika Selabumi Mining - Indonesia
- Carbofer General Trading SA - India
- Kapuas Tunggal Persada - Indonesia
- Eastern Energy - Thailand
- Bukit Makmur.PT - Indonesia
- OPG Power Generation Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Ind-Barath Power Infra Limited - India
- Antam Resourcindo - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Grasim Industreis Ltd - India
- Energy Development Corp, Philippines
- Bulk Trading Sa - Switzerland
- McConnell Dowell - Australia
- Maharashtra Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Cigading International Bulk Terminal - Indonesia
- The Treasury - Australian Government
- Orica Mining Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Ministry of Transport, Egypt
- Thai Mozambique Logistica
- Chamber of Mines of South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Economic Council, Georgia
- Kumho Petrochemical, South Korea
- Goldman Sachs - Singapore
- Krishnapatnam Port Company Ltd. - India
- Meenaskhi Energy Private Limited - India
- Wilmar Investment Holdings
- Mjunction Services Limited - India
- Neyveli Lignite Corporation Ltd, - India
- SMG Consultants - Indonesia
- Manunggal Multi Energi - Indonesia
- Sojitz Corporation - Japan
- Meralco Power Generation, Philippines
- Sakthi Sugars Limited - India
- Gujarat Sidhee Cement - India
- CIMB Investment Bank - Malaysia
- Banpu Public Company Limited - Thailand
- GAC Shipping (India) Pvt Ltd
- Sindya Power Generating Company Private Ltd
- Ministry of Finance - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Savvy Resources Ltd - HongKong
- Wood Mackenzie - Singapore
- Commonwealth Bank - Australia
- TeaM Sual Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Salva Resources Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Kaltim Prima Coal - Indonesia
- VISA Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Maheswari Brothers Coal Limited - India
- Vedanta Resources Plc - India
- Baramulti Group, Indonesia
- Africa Commodities Group - South Africa
- Price Waterhouse Coopers - Russia
- Billiton Holdings Pty Ltd - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coal and Oil Company - UAE
- Singapore Mercantile Exchange
- Australian Coal Association
- Anglo American - United Kingdom
- Romanian Commodities Exchange
- Malabar Cements Ltd - India
- Riau Bara Harum - Indonesia
- Altura Mining Limited, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Xindia Steels Limited - India
- Central Java Power - Indonesia
- Bangladesh Power Developement Board
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- Global Business Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Directorate Of Revenue Intelligence - India
- LBH Netherlands Bv - Netherlands
- Mercator Lines Limited - India
- Interocean Group of Companies - India
- Sical Logistics Limited - India
- GMR Energy Limited - India
- Ministry of Mines - Canada
- London Commodity Brokers - England
- Larsen & Toubro Limited - India
- Aditya Birla Group - India
- Merrill Lynch Commodities Europe
- Agrawal Coal Company - India
- Medco Energi Mining Internasional
- SMC Global Power, Philippines
- Timah Investasi Mineral - Indoneisa
- Madhucon Powers Ltd - India
- Ambuja Cements Ltd - India
- Electricity Authority, New Zealand
- Kideco Jaya Agung - Indonesia
- India Bulls Power Limited - India
- Jaiprakash Power Ventures ltd
- Orica Australia Pty. Ltd.
- Australian Commodity Traders Exchange
- ICICI Bank Limited - India
- Indian Energy Exchange, India
- Directorate General of MIneral and Coal - Indonesia
- PowerSource Philippines DevCo
- Semirara Mining Corp, Philippines
- Bhoruka Overseas - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indian Oil Corporation Limited
- Aboitiz Power Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Pipit Mutiara Jaya. PT, Indonesia
- Dalmia Cement Bharat India
- AsiaOL BioFuels Corp., Philippines
- Uttam Galva Steels Limited - India
- Alfred C Toepfer International GmbH - Germany
- Chettinad Cement Corporation Ltd - India
- Kepco SPC Power Corporation, Philippines
- Eastern Coal Council - USA
- Parry Sugars Refinery, India
- Vizag Seaport Private Limited - India
- Kobexindo Tractors - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Karbindo Abesyapradhi - Indoneisa
- Central Electricity Authority - India
- Makarim & Taira - Indonesia
- Standard Chartered Bank - UAE
- SN Aboitiz Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Latin American Coal - Colombia
- ASAPP Information Group - India
- Global Green Power PLC Corporation, Philippines
- Georgia Ports Authority, United States
- Lanco Infratech Ltd - India
- International Coal Ventures Pvt Ltd - India
- Indogreen Group - Indonesia
- Simpson Spence & Young - Indonesia
- Coalindo Energy - Indonesia
- Star Paper Mills Limited - India
- South Luzon Thermal Energy Corporation
- Asmin Koalindo Tuhup - Indonesia
- Sree Jayajothi Cements Limited - India
- Port Waratah Coal Services - Australia
- Bhatia International Limited - India
- Miang Besar Coal Terminal - Indonesia
- The State Trading Corporation of India Ltd
- Pendopo Energi Batubara - Indonesia
- PTC India Limited - India
- Petron Corporation, Philippines
- IEA Clean Coal Centre - UK
- Karaikal Port Pvt Ltd - India
- CNBM International Corporation - China
- Energy Link Ltd, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IHS Mccloskey Coal Group - USA
- Iligan Light & Power Inc, Philippines
- Marubeni Corporation - India
- Siam City Cement PLC, Thailand
- Borneo Indobara - Indonesia
- PNOC Exploration Corporation - Philippines
- White Energy Company Limited
- European Bulk Services B.V. - Netherlands
- Indika Energy - Indonesia
- Tamil Nadu electricity Board
- Independent Power Producers Association of India
- GVK Power & Infra Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- The University of Queensland
- Bhushan Steel Limited - India
|
| |
| |
|
