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.
|
|
Wednesday, 19 February 20
AS OCEAN TEMPERATURES RISE, SHIPOWNERS LOOK FOR WAYS TO COPE - WARTSILA
The world is heating up, and its oceans are no exception. According to the International Panel on Climate Change (IPCC), the oceans absorb the majo ...
Wednesday, 19 February 20
MARKET INSIGHT - INTERMODAL
The coronavirus outbreak is estimated to negatively affect global economy by at least EUR400bn this year, representing around the 0.4% of global GD ...
Tuesday, 18 February 20
WEEKLY MARKET ANALYSIS - ALLIED
Under such poorly performing market circumstances, many usually take the historical approach, in order to better understand and further analyze the ...
Tuesday, 18 February 20
ADARO SHIPPED 27 PERCENT OF ITS TOTAL COAL PRODUCTION IN 2019 TO INDIA AND CHINA
PT Adaro Energy Tbk (AE) produced 58.03 Mt of coal from PT Adaro Indonesia (AI), Balangan Coal Companies and Adaro Me ...
Tuesday, 18 February 20
ADARO REMAINS POSITIVE ON THE LONG-TERM FUNDAMENTALS OF COAL MARKET SUPPORTED BY THE SOUTHEAST ASIA AND SOUTH ASIA REGION
The global seaborne thermal coal market in 2019 was faced with macro and industry challenges which pushed international coa ...
|
|
|
Showing 1121 to 1125 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bukit Baiduri Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Indogreen Group - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- The University of Queensland
- PTC India Limited - India
- VISA Power Limited - India
- The Treasury - Australian Government
- Intertek Mineral Services - Indonesia
- Medco Energi Mining Internasional
- Agrawal Coal Company - India
- Indian Energy Exchange, India
- Eastern Energy - Thailand
- New Zealand Coal & Carbon
- Electricity Authority, New Zealand
- Oldendorff Carriers - Singapore
- Toyota Tsusho Corporation, Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Madhucon Powers Ltd - India
- Georgia Ports Authority, United States
- Cigading International Bulk Terminal - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Mercator Lines Limited - India
- LBH Netherlands Bv - Netherlands
- Interocean Group of Companies - India
- Miang Besar Coal Terminal - Indonesia
- Sical Logistics Limited - India
- Gujarat Mineral Development Corp Ltd - India
- South Luzon Thermal Energy Corporation
- Offshore Bulk Terminal Pte Ltd, Singapore
- CIMB Investment Bank - Malaysia
- Timah Investasi Mineral - Indoneisa
- Meenaskhi Energy Private Limited - India
- Bulk Trading Sa - Switzerland
- ASAPP Information Group - India
- Renaissance Capital - South Africa
- International Coal Ventures Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Orica Mining Services - Indonesia
- Salva Resources Pvt Ltd - India
- Energy Development Corp, Philippines
- Dalmia Cement Bharat India
- Holcim Trading Pte Ltd - Singapore
- Posco Energy - South Korea
- Kartika Selabumi Mining - Indonesia
- GAC Shipping (India) Pvt Ltd
- Goldman Sachs - Singapore
- Ceylon Electricity Board - Sri Lanka
- Singapore Mercantile Exchange
- Alfred C Toepfer International GmbH - Germany
- Straits Asia Resources Limited - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Tata Chemicals Ltd - India
- Malabar Cements Ltd - India
- Samtan Co., Ltd - South Korea
- Planning Commission, India
- Krishnapatnam Port Company Ltd. - India
- Central Electricity Authority - India
- Anglo American - United Kingdom
- Economic Council, Georgia
- SN Aboitiz Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Romanian Commodities Exchange
- Directorate Of Revenue Intelligence - India
- Global Business Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- McConnell Dowell - Australia
- Sindya Power Generating Company Private Ltd
- Australian Commodity Traders Exchange
- Siam City Cement PLC, Thailand
- Deloitte Consulting - India
- Mjunction Services Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kaltim Prima Coal - Indonesia
- Ministry of Transport, Egypt
- Parliament of New Zealand
- Petron Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Aditya Birla Group - India
- Petrochimia International Co. Ltd.- Taiwan
- Simpson Spence & Young - Indonesia
- Mercuria Energy - Indonesia
- Vizag Seaport Private Limited - India
- SMG Consultants - Indonesia
- Ind-Barath Power Infra Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Metalloyd Limited - United Kingdom
- Indika Energy - Indonesia
- Price Waterhouse Coopers - Russia
- PowerSource Philippines DevCo
- Meralco Power Generation, Philippines
- OPG Power Generation Pvt Ltd - India
- Trasteel International SA, Italy
- Semirara Mining and Power Corporation, Philippines
- MS Steel International - UAE
- Chamber of Mines of South Africa
- European Bulk Services B.V. - Netherlands
- Thiess Contractors Indonesia
- Siam City Cement - Thailand
- Africa Commodities Group - South Africa
- Merrill Lynch Commodities Europe
- Edison Trading Spa - Italy
- Chettinad Cement Corporation Ltd - India
- Ministry of Finance - Indonesia
- Binh Thuan Hamico - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Kumho Petrochemical, South Korea
- PetroVietnam Power Coal Import and Supply Company
- San Jose City I Power Corp, Philippines
- Ministry of Mines - Canada
- Sarangani Energy Corporation, Philippines
- Coal and Oil Company - UAE
- Xindia Steels Limited - India
- AsiaOL BioFuels Corp., Philippines
- Pendopo Energi Batubara - Indonesia
- Indian Oil Corporation Limited
- Karaikal Port Pvt Ltd - India
- Independent Power Producers Association of India
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- Grasim Industreis Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Savvy Resources Ltd - HongKong
- Maheswari Brothers Coal Limited - India
- Tamil Nadu electricity Board
- Therma Luzon, Inc, Philippines
- Power Finance Corporation Ltd., India
- Videocon Industries ltd - India
- Riau Bara Harum - Indonesia
- Standard Chartered Bank - UAE
- Kohat Cement Company Ltd. - Pakistan
- Billiton Holdings Pty Ltd - Australia
- Formosa Plastics Group - Taiwan
- The State Trading Corporation of India Ltd
- Iligan Light & Power Inc, Philippines
- Vedanta Resources Plc - India
- Carbofer General Trading SA - India
- Commonwealth Bank - Australia
- Parry Sugars Refinery, India
- Kepco SPC Power Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Globalindo Alam Lestari - Indonesia
- Central Java Power - Indonesia
- Orica Australia Pty. Ltd.
- GMR Energy Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Sojitz Corporation - Japan
- Sakthi Sugars Limited - India
- Semirara Mining Corp, Philippines
- Bhatia International Limited - India
- PNOC Exploration Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Coalindo Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GVK Power & Infra Limited - India
- Jaiprakash Power Ventures ltd
- SMC Global Power, Philippines
- Heidelberg Cement - Germany
- Barasentosa Lestari - Indonesia
- Aboitiz Power Corporation - Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Australian Coal Association
- IEA Clean Coal Centre - UK
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Minerals Council of Australia
- Lanco Infratech Ltd - India
- Star Paper Mills Limited - India
- White Energy Company Limited
- Bayan Resources Tbk. - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Global Green Power PLC Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- ICICI Bank Limited - India
- Kalimantan Lumbung Energi - Indonesia
- London Commodity Brokers - England
- Latin American Coal - Colombia
- Kideco Jaya Agung - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Electricity Generating Authority of Thailand
- Bhoruka Overseas - Indonesia
- Borneo Indobara - Indonesia
- Altura Mining Limited, Indonesia
- Wilmar Investment Holdings
- India Bulls Power Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Bangladesh Power Developement Board
- Attock Cement Pakistan Limited
- Wood Mackenzie - Singapore
- Gujarat Electricity Regulatory Commission - India
- Marubeni Corporation - India
- Indo Tambangraya Megah - Indonesia
- Larsen & Toubro Limited - India
- Cement Manufacturers Association - India
- TeaM Sual Corporation - Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indonesian Coal Mining Association
- Coastal Gujarat Power Limited - India
- Port Waratah Coal Services - Australia
- Antam Resourcindo - Indonesia
- Energy Link Ltd, New Zealand
- Bharathi Cement Corporation - India
- Eastern Coal Council - USA
- Thai Mozambique Logistica
- IHS Mccloskey Coal Group - USA
- Rashtriya Ispat Nigam Limited - India
- Mintek Dendrill Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vijayanagar Sugar Pvt Ltd - India
- Bhushan Steel Limited - India
- Gujarat Sidhee Cement - India
- Makarim & Taira - Indonesia
- Baramulti Group, Indonesia
- Ambuja Cements Ltd - India
|
| |
| |
|
