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 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Kepco SPC Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Kideco Jaya Agung - Indonesia
- Ministry of Finance - Indonesia
- ASAPP Information Group - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Independent Power Producers Association of India
- Standard Chartered Bank - UAE
- Aboitiz Power Corporation - Philippines
- Renaissance Capital - South Africa
- The Treasury - Australian Government
- Africa Commodities Group - South Africa
- Intertek Mineral Services - Indonesia
- Port Waratah Coal Services - Australia
- Altura Mining Limited, Indonesia
- Siam City Cement - Thailand
- Jorong Barutama Greston.PT - Indonesia
- India Bulls Power Limited - India
- Oldendorff Carriers - Singapore
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- London Commodity Brokers - England
- PowerSource Philippines DevCo
- Trasteel International SA, Italy
- Makarim & Taira - Indonesia
- Barasentosa Lestari - Indonesia
- Mercuria Energy - Indonesia
- Dalmia Cement Bharat India
- Power Finance Corporation Ltd., India
- Sojitz Corporation - Japan
- GMR Energy Limited - India
- Meenaskhi Energy Private Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Global Green Power PLC Corporation, Philippines
- The University of Queensland
- Indonesian Coal Mining Association
- White Energy Company Limited
- Salva Resources Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- McConnell Dowell - Australia
- Leighton Contractors Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- SMG Consultants - Indonesia
- Pendopo Energi Batubara - Indonesia
- Parry Sugars Refinery, India
- Uttam Galva Steels Limited - India
- Wilmar Investment Holdings
- GN Power Mariveles Coal Plant, Philippines
- San Jose City I Power Corp, Philippines
- Tamil Nadu electricity Board
- Posco Energy - South Korea
- Therma Luzon, Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Petron Corporation, Philippines
- Chamber of Mines of South Africa
- Bulk Trading Sa - Switzerland
- Edison Trading Spa - Italy
- Kobexindo Tractors - Indoneisa
- Kumho Petrochemical, South Korea
- Ambuja Cements Ltd - India
- Parliament of New Zealand
- Sinarmas Energy and Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Madhucon Powers Ltd - India
- ICICI Bank Limited - India
- SN Aboitiz Power Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Siam City Cement PLC, Thailand
- Sical Logistics Limited - India
- Binh Thuan Hamico - Vietnam
- Eastern Coal Council - USA
- Bhoruka Overseas - Indonesia
- Maheswari Brothers Coal Limited - India
- Toyota Tsusho Corporation, Japan
- Bhatia International Limited - India
- Banpu Public Company Limited - Thailand
- Planning Commission, India
- Indika Energy - Indonesia
- Riau Bara Harum - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Malabar Cements Ltd - India
- Borneo Indobara - Indonesia
- PNOC Exploration Corporation - Philippines
- Meralco Power Generation, Philippines
- Ind-Barath Power Infra Limited - India
- Ministry of Transport, Egypt
- Offshore Bulk Terminal Pte Ltd, Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Straits Asia Resources Limited - Singapore
- Eastern Energy - Thailand
- Ceylon Electricity Board - Sri Lanka
- Kalimantan Lumbung Energi - Indonesia
- Indian Energy Exchange, India
- Anglo American - United Kingdom
- Metalloyd Limited - United Kingdom
- Xindia Steels Limited - India
- Coastal Gujarat Power Limited - India
- CNBM International Corporation - China
- Energy Development Corp, Philippines
- Aditya Birla Group - India
- Energy Link Ltd, New Zealand
- Savvy Resources Ltd - HongKong
- Wood Mackenzie - Singapore
- Bharathi Cement Corporation - India
- Kapuas Tunggal Persada - Indonesia
- Cement Manufacturers Association - India
- Samtan Co., Ltd - South Korea
- PTC India Limited - India
- Australian Coal Association
- Larsen & Toubro Limited - India
- Semirara Mining and Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Antam Resourcindo - Indonesia
- Kartika Selabumi Mining - Indonesia
- New Zealand Coal & Carbon
- Central Electricity Authority - India
- Bukit Asam (Persero) Tbk - Indonesia
- Mercator Lines Limited - India
- Kaltim Prima Coal - Indonesia
- Central Java Power - Indonesia
- Baramulti Group, Indonesia
- Mintek Dendrill Indonesia
- MS Steel International - UAE
- Medco Energi Mining Internasional
- Indogreen Group - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Authority, New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Deloitte Consulting - India
- Krishnapatnam Port Company Ltd. - India
- Simpson Spence & Young - Indonesia
- Orica Mining Services - Indonesia
- Coalindo Energy - Indonesia
- Grasim Industreis Ltd - India
- Minerals Council of Australia
- Manunggal Multi Energi - Indonesia
- Australian Commodity Traders Exchange
- Agrawal Coal Company - India
- PetroVietnam Power Coal Import and Supply Company
- Coal and Oil Company - UAE
- Vedanta Resources Plc - India
- Star Paper Mills Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Attock Cement Pakistan Limited
- Semirara Mining Corp, Philippines
- TeaM Sual Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Bhushan Steel Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Singapore Mercantile Exchange
- Sakthi Sugars Limited - India
- IHS Mccloskey Coal Group - USA
- Essar Steel Hazira Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- CIMB Investment Bank - Malaysia
- Marubeni Corporation - India
- International Coal Ventures Pvt Ltd - India
- Commonwealth Bank - Australia
- Bangladesh Power Developement Board
- Gujarat Sidhee Cement - India
- Videocon Industries ltd - India
- South Luzon Thermal Energy Corporation
- The State Trading Corporation of India Ltd
- Global Coal Blending Company Limited - Australia
- Alfred C Toepfer International GmbH - Germany
- SMC Global Power, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Mines - Canada
- Rashtriya Ispat Nigam Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Orica Australia Pty. Ltd.
- Billiton Holdings Pty Ltd - Australia
- Mjunction Services Limited - India
- Indian Oil Corporation Limited
- Tata Chemicals Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Romanian Commodities Exchange
- Thiess Contractors Indonesia
- Merrill Lynch Commodities Europe
- Timah Investasi Mineral - Indoneisa
- IEA Clean Coal Centre - UK
- VISA Power Limited - India
- Indo Tambangraya Megah - Indonesia
- Interocean Group of Companies - India
- Miang Besar Coal Terminal - Indonesia
- GAC Shipping (India) Pvt Ltd
- Sree Jayajothi Cements Limited - India
- Karaikal Port Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Iligan Light & Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Georgia Ports Authority, United States
- AsiaOL BioFuels Corp., Philippines
- Price Waterhouse Coopers - Russia
- Goldman Sachs - Singapore
- Lanco Infratech Ltd - India
- Electricity Generating Authority of Thailand
- GVK Power & Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Economic Council, Georgia
- Vizag Seaport Private Limited - India
- Jaiprakash Power Ventures ltd
- Thai Mozambique Logistica
- Latin American Coal - Colombia
- Carbofer General Trading SA - India
- Rio Tinto Coal - Australia
- LBH Netherlands Bv - Netherlands
|
| |
| |
|
