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, 22 November 23
INDIA: GOVERNMENT PLANS 1.4 BILLION TONNE COAL OUTPUT BY 2027 - LIVEMINT
The Union coal ministry on Monday announced plans to increase India’s coal production to 1.404 billion tonne by 2027, with an eye to further ...
Wednesday, 22 November 23
OBLIGATION. INDONESIA AIMS TO START COLLECTING LEVIES FROM COAL MINERS IN JANUARY - REUTERS
Indonesia plans to start collecting levies from coal miners in January to be used to compensate miners who sell coal to the state utility at lower ...
Tuesday, 21 November 23
INDIAN COAL POWER PLANTS’ CAPACITY UTILISATION WILL IMPROVE TO 65% THIS FISCAL: - CRISIL
Coal-based thermal power units’ plant load factor (PLF) or capacity utilisation will improve to 65 percent in the current fiscal year despite ...
Tuesday, 14 November 23
CAPITAL PRODUCT PARTNERS L.P. ANNOUNCES TRANSFORMATIVE TRANSACTION INCLUDING THE ACQUISITION OF 11 NEWBUILD LNG CARRIERS FOR $3.1 BILLION
Capital Product Partners L.P. announced that it has entered into an umbrella agreement (the “Umbrella Agreement”) with Capital Maritime ...
Tuesday, 14 November 23
COAL INDIA BEATS Q2 PROFIT VIEW ON HIGH POWER DEMAND AMID WEAK MONSOON - REUTERS
Coal India on Friday reported better-than-expected second-quarter profit, helped by high power demand and boosted production amid a weak monsoon.
...
|
|
|
Showing 71 to 75 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- San Jose City I Power Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Antam Resourcindo - Indonesia
- Alfred C Toepfer International GmbH - Germany
- CIMB Investment Bank - Malaysia
- Savvy Resources Ltd - HongKong
- Central Java Power - Indonesia
- Riau Bara Harum - Indonesia
- Bangladesh Power Developement Board
- Xindia Steels Limited - India
- Australian Commodity Traders Exchange
- Kumho Petrochemical, South Korea
- Barasentosa Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Makarim & Taira - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IHS Mccloskey Coal Group - USA
- GVK Power & Infra Limited - India
- The Treasury - Australian Government
- PetroVietnam Power Coal Import and Supply Company
- Indonesian Coal Mining Association
- LBH Netherlands Bv - Netherlands
- Ministry of Mines - Canada
- Bayan Resources Tbk. - Indonesia
- Bhatia International Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Mercator Lines Limited - India
- Trasteel International SA, Italy
- Toyota Tsusho Corporation, Japan
- Semirara Mining Corp, Philippines
- Salva Resources Pvt Ltd - India
- Ministry of Transport, Egypt
- SMG Consultants - Indonesia
- Electricity Generating Authority of Thailand
- Edison Trading Spa - Italy
- Latin American Coal - Colombia
- Neyveli Lignite Corporation Ltd, - India
- Sakthi Sugars Limited - India
- Kobexindo Tractors - Indoneisa
- Indika Energy - Indonesia
- Videocon Industries ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Manunggal Multi Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Kartika Selabumi Mining - Indonesia
- Maheswari Brothers Coal Limited - India
- Coastal Gujarat Power Limited - India
- Deloitte Consulting - India
- Bukit Baiduri Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Grasim Industreis Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- GAC Shipping (India) Pvt Ltd
- Kideco Jaya Agung - Indonesia
- Mjunction Services Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Planning Commission, India
- Chettinad Cement Corporation Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Sree Jayajothi Cements Limited - India
- Jaiprakash Power Ventures ltd
- Port Waratah Coal Services - Australia
- Semirara Mining and Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Heidelberg Cement - Germany
- Posco Energy - South Korea
- VISA Power Limited - India
- Ambuja Cements Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- International Coal Ventures Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Cement Manufacturers Association - India
- Wilmar Investment Holdings
- Simpson Spence & Young - Indonesia
- Oldendorff Carriers - Singapore
- Anglo American - United Kingdom
- Metalloyd Limited - United Kingdom
- Agrawal Coal Company - India
- Tata Chemicals Ltd - India
- Petron Corporation, Philippines
- Central Electricity Authority - India
- Medco Energi Mining Internasional
- Ministry of Finance - Indonesia
- Attock Cement Pakistan Limited
- Mintek Dendrill Indonesia
- Sindya Power Generating Company Private Ltd
- Lanco Infratech Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- India Bulls Power Limited - India
- Georgia Ports Authority, United States
- Goldman Sachs - Singapore
- Indian Energy Exchange, India
- Indogreen Group - Indonesia
- Formosa Plastics Group - Taiwan
- Therma Luzon, Inc, Philippines
- Parry Sugars Refinery, India
- Kapuas Tunggal Persada - Indonesia
- Global Green Power PLC Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Madhucon Powers Ltd - India
- Minerals Council of Australia
- Global Business Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- TeaM Sual Corporation - Philippines
- Borneo Indobara - Indonesia
- Australian Coal Association
- GMR Energy Limited - India
- Meenaskhi Energy Private Limited - India
- CNBM International Corporation - China
- Ind-Barath Power Infra Limited - India
- Binh Thuan Hamico - Vietnam
- Miang Besar Coal Terminal - Indonesia
- Price Waterhouse Coopers - Russia
- Siam City Cement - Thailand
- London Commodity Brokers - England
- Star Paper Mills Limited - India
- Indian Oil Corporation Limited
- Electricity Authority, New Zealand
- Krishnapatnam Port Company Ltd. - India
- Commonwealth Bank - Australia
- Economic Council, Georgia
- Aditya Birla Group - India
- Leighton Contractors Pty Ltd - Australia
- Gujarat Sidhee Cement - India
- Karaikal Port Pvt Ltd - India
- Carbofer General Trading SA - India
- Chamber of Mines of South Africa
- Karbindo Abesyapradhi - Indoneisa
- Romanian Commodities Exchange
- Kepco SPC Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Bukit Makmur.PT - Indonesia
- Mercuria Energy - Indonesia
- Interocean Group of Companies - India
- Directorate Of Revenue Intelligence - India
- Eastern Energy - Thailand
- Bhoruka Overseas - Indonesia
- Globalindo Alam Lestari - Indonesia
- Wood Mackenzie - Singapore
- PowerSource Philippines DevCo
- The State Trading Corporation of India Ltd
- Iligan Light & Power Inc, Philippines
- Parliament of New Zealand
- Larsen & Toubro Limited - India
- Jindal Steel & Power Ltd - India
- Bharathi Cement Corporation - India
- Orica Mining Services - Indonesia
- Merrill Lynch Commodities Europe
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Banpu Public Company Limited - Thailand
- Indo Tambangraya Megah - Indonesia
- Malabar Cements Ltd - India
- Independent Power Producers Association of India
- Renaissance Capital - South Africa
- Coal and Oil Company - UAE
- Cigading International Bulk Terminal - Indonesia
- SMC Global Power, Philippines
- Orica Australia Pty. Ltd.
- Baramulti Group, Indonesia
- Altura Mining Limited, Indonesia
- IEA Clean Coal Centre - UK
- Thiess Contractors Indonesia
- Bhushan Steel Limited - India
- Sical Logistics Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coalindo Energy - Indonesia
- Singapore Mercantile Exchange
- McConnell Dowell - Australia
- Siam City Cement PLC, Thailand
- AsiaOL BioFuels Corp., Philippines
- Marubeni Corporation - India
- ASAPP Information Group - India
- Africa Commodities Group - South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jorong Barutama Greston.PT - Indonesia
- Vizag Seaport Private Limited - India
- Standard Chartered Bank - UAE
- New Zealand Coal & Carbon
- Tamil Nadu electricity Board
- Gujarat Mineral Development Corp Ltd - India
- Pendopo Energi Batubara - Indonesia
- Bulk Trading Sa - Switzerland
- The University of Queensland
- Sojitz Corporation - Japan
- Vedanta Resources Plc - India
- ICICI Bank Limited - India
- Kaltim Prima Coal - Indonesia
- Energy Link Ltd, New Zealand
- Thai Mozambique Logistica
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Energy Development Corp, Philippines
- PTC India Limited - India
- MS Steel International - UAE
- PNOC Exploration Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- Essar Steel Hazira Ltd - India
- Power Finance Corporation Ltd., India
- Intertek Mineral Services - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Aboitiz Power Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Samtan Co., Ltd - South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Dalmia Cement Bharat India
- European Bulk Services B.V. - Netherlands
- Vijayanagar Sugar Pvt Ltd - India
- Eastern Coal Council - USA
- White Energy Company Limited
- Rio Tinto Coal - Australia
|
| |
| |
|
