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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
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Wednesday, 04 March 20
CORONAVIRUS: A WILDCARD FOR BULKS DEMAND - WOOD MACKENZIE
The coronavirus is casting a shadow across commodity markets. It has undermined China’s economic sentiment, putting the country’s growt ...
Wednesday, 04 March 20
THERMAL COAL TO 'PHASE OUT', STRONG DEMAND FOR COKING COAL: PLATO - SYDNEY MORNING HERALD
Plato Investments managing director Don Hamson says Australian iron ore producers are set to benefit in the fallout from coronavirus as China will ...
Wednesday, 04 March 20
CHINA PROVINCE TO CLOSE 10 MLN TONNES OF COAL CAPACITY IN 2020 - XINHUA
Southwest China’s Guizhou Province plans to phase out 10 million tonnes of outdated coal production capacity by closing 80 coal mines in 2020 ...
Wednesday, 04 March 20
UKRAINE PRODUCED OVER 2.55 MLN TONNES OF COAL IN FEBRUARY - UKRINFORM
In February 2020, Ukraine produced over 2.55 million tonnes of coal, which is 0.2% less than planned.
The Coal Miners Union of Ukrai ...
Tuesday, 03 March 20
IMPORTANCE OF MASTER'S CARGO CHECKS - BALTIC EXCHANGE
KNOWLEDGE TO ELEVATE
Adecision in recent High Court case has made it clear that there is no implied indemnity from a charterer to their counte ...
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Showing 1096 to 1100 news of total 6871 |
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- Romanian Commodities Exchange
- Altura Mining Limited, Indonesia
- International Coal Ventures Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Madhucon Powers Ltd - India
- Simpson Spence & Young - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Finance - Indonesia
- Standard Chartered Bank - UAE
- Grasim Industreis Ltd - India
- MS Steel International - UAE
- Globalindo Alam Lestari - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Central Java Power - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Makarim & Taira - Indonesia
- Orica Australia Pty. Ltd.
- Rio Tinto Coal - Australia
- Coal and Oil Company - UAE
- Electricity Authority, New Zealand
- ASAPP Information Group - India
- ICICI Bank Limited - India
- Tata Chemicals Ltd - India
- Bulk Trading Sa - Switzerland
- Sakthi Sugars Limited - India
- The Treasury - Australian Government
- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Wilmar Investment Holdings
- Gujarat Electricity Regulatory Commission - India
- Bangladesh Power Developement Board
- Global Coal Blending Company Limited - Australia
- Binh Thuan Hamico - Vietnam
- Straits Asia Resources Limited - Singapore
- Billiton Holdings Pty Ltd - Australia
- New Zealand Coal & Carbon
- VISA Power Limited - India
- Orica Mining Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Vizag Seaport Private Limited - India
- The State Trading Corporation of India Ltd
- Commonwealth Bank - Australia
- Indo Tambangraya Megah - Indonesia
- The University of Queensland
- CIMB Investment Bank - Malaysia
- Port Waratah Coal Services - Australia
- Banpu Public Company Limited - Thailand
- Kideco Jaya Agung - Indonesia
- Videocon Industries ltd - India
- Goldman Sachs - Singapore
- Agrawal Coal Company - India
- Power Finance Corporation Ltd., India
- Maheswari Brothers Coal Limited - India
- Jorong Barutama Greston.PT - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Essar Steel Hazira Ltd - India
- GMR Energy Limited - India
- GAC Shipping (India) Pvt Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Independent Power Producers Association of India
- Ministry of Mines - Canada
- Baramulti Group, Indonesia
- Heidelberg Cement - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chamber of Mines of South Africa
- San Jose City I Power Corp, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Indonesian Coal Mining Association
- London Commodity Brokers - England
- Siam City Cement - Thailand
- Metalloyd Limited - United Kingdom
- Jindal Steel & Power Ltd - India
- Bhushan Steel Limited - India
- Larsen & Toubro Limited - India
- SN Aboitiz Power Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Neyveli Lignite Corporation Ltd, - India
- Holcim Trading Pte Ltd - Singapore
- European Bulk Services B.V. - Netherlands
- Cement Manufacturers Association - India
- White Energy Company Limited
- Rashtriya Ispat Nigam Limited - India
- Kartika Selabumi Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Directorate General of MIneral and Coal - Indonesia
- Africa Commodities Group - South Africa
- PTC India Limited - India
- Edison Trading Spa - Italy
- Aboitiz Power Corporation - Philippines
- Wood Mackenzie - Singapore
- Directorate Of Revenue Intelligence - India
- Bukit Asam (Persero) Tbk - Indonesia
- Parliament of New Zealand
- Bhatia International Limited - India
- Anglo American - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- Interocean Group of Companies - India
- Dalmia Cement Bharat India
- Economic Council, Georgia
- Pendopo Energi Batubara - Indonesia
- Energy Link Ltd, New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kumho Petrochemical, South Korea
- Singapore Mercantile Exchange
- Coalindo Energy - Indonesia
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- Thai Mozambique Logistica
- Global Business Power Corporation, Philippines
- Georgia Ports Authority, United States
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sinarmas Energy and Mining - Indonesia
- CNBM International Corporation - China
- Renaissance Capital - South Africa
- Bhoruka Overseas - Indonesia
- Meralco Power Generation, Philippines
- Bharathi Cement Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Merrill Lynch Commodities Europe
- Indian Energy Exchange, India
- Trasteel International SA, Italy
- GVK Power & Infra Limited - India
- Marubeni Corporation - India
- Aditya Birla Group - India
- LBH Netherlands Bv - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Kalimantan Lumbung Energi - Indonesia
- Central Electricity Authority - India
- Kobexindo Tractors - Indoneisa
- Deloitte Consulting - India
- SMC Global Power, Philippines
- Uttam Galva Steels Limited - India
- Vedanta Resources Plc - India
- Ind-Barath Power Infra Limited - India
- Salva Resources Pvt Ltd - India
- Xindia Steels Limited - India
- Therma Luzon, Inc, Philippines
- Intertek Mineral Services - Indonesia
- Medco Energi Mining Internasional
- PNOC Exploration Corporation - Philippines
- Thiess Contractors Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Mineral Development Corp Ltd - India
- India Bulls Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Petron Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Posco Energy - South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Lanco Infratech Ltd - India
- Electricity Generating Authority of Thailand
- Meenaskhi Energy Private Limited - India
- Borneo Indobara - Indonesia
- Coastal Gujarat Power Limited - India
- Bukit Makmur.PT - Indonesia
- Mjunction Services Limited - India
- Ceylon Electricity Board - Sri Lanka
- South Luzon Thermal Energy Corporation
- Planning Commission, India
- Miang Besar Coal Terminal - Indonesia
- Tamil Nadu electricity Board
- Riau Bara Harum - Indonesia
- Toyota Tsusho Corporation, Japan
- Kohat Cement Company Ltd. - Pakistan
- Malabar Cements Ltd - India
- Jaiprakash Power Ventures ltd
- Semirara Mining Corp, Philippines
- Mercator Lines Limited - India
- Ministry of Transport, Egypt
- Krishnapatnam Port Company Ltd. - India
- IHS Mccloskey Coal Group - USA
- Sical Logistics Limited - India
- Leighton Contractors Pty Ltd - Australia
- Minerals Council of Australia
- Bayan Resources Tbk. - Indonesia
- Latin American Coal - Colombia
- Formosa Plastics Group - Taiwan
- Sree Jayajothi Cements Limited - India
- Maharashtra Electricity Regulatory Commission - India
- McConnell Dowell - Australia
- SMG Consultants - Indonesia
- Bukit Baiduri Energy - Indonesia
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- Samtan Co., Ltd - South Korea
- Eastern Energy - Thailand
- Energy Development Corp, Philippines
- Siam City Cement PLC, Thailand
- Sarangani Energy Corporation, Philippines
- Barasentosa Lestari - Indonesia
- IEA Clean Coal Centre - UK
- OPG Power Generation Pvt Ltd - India
- PowerSource Philippines DevCo
- Attock Cement Pakistan Limited
- Mintek Dendrill Indonesia
- Antam Resourcindo - Indonesia
- Ambuja Cements Ltd - India
- Iligan Light & Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Indogreen Group - Indonesia
- Carbofer General Trading SA - India
- Chettinad Cement Corporation Ltd - India
- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- Kapuas Tunggal Persada - Indonesia
- Mercuria Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Price Waterhouse Coopers - Russia
- Indika Energy - Indonesia
- Eastern Coal Council - USA
- Karaikal Port Pvt Ltd - India
- Australian Coal Association
- Cigading International Bulk Terminal - Indonesia
- Gujarat Sidhee Cement - India
- Bahari Cakrawala Sebuku - Indonesia
- Kepco SPC Power Corporation, Philippines
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