| SHIPPING RATES & BUNKERS ( 9:40 am ET ) | |||
| DIRTY TANKER (KT - $/day) | VOYAGE | SPOT TCE EARNINGS | 2018 AVG. RATE |
| VLCC, 270 | AG-FE | 10,300 | 8,500 |
| Suezmax, 130 | WAF-UKC | (800) | 600 |
| Aframax, 70 | CAR-USG | 14,500 | 5,800 |
| Panamax, 50 | CAR-USG | 5,800 | 6,800 |
| CLEAN TANKER (KT - $/day) | VOYAGE | SPOT TCE EARNINGS | 2018 AVG. RATE |
| MR, 37 | UKC-USAC | 2,200 | 8,700 |
| MR, 38 | USG-UKC | (3,700) | 2,000 |
| TIME CHARTER (KDWT) | 1YR ECO RATE ($/day) | NEWBUILD PRICE ($M ) | SECONDHAND 5YR PRICE ($M) |
| VLCC , 200+ | 25,000 | 88.0 | 61.5 |
| Suezmax, 130-200 | 18,000 | 60.0 | 41.0 |
| Aframax, 80-130 | 15,000 | 48.0 | 30.0 |
| LR2, 80-130 | 15,250 | 50.0 | 30.5 |
| LR1, 60-80 | 14,000 | 42.0 | 29.0 |
| MR, 42-60 | 14,750 | 36.0 | 26.5 |
| Handymax. 30-42 | 12,750 | 33.0 | 23.0 |
| US FLAG (KT - $/day) | VOYAGE | WEEKLY SPOT RATE | 2018 AVG. RATE |
| Handy, 38 | USG-USAC | 68,077 | 64,166 |
| LNG ($/day) | WEEKLY SPOT RATE | CURRENT MONTH RATE | 2018 AVG. RATE |
| 160M3 Tri-fuel diesel electric (West) | 60,000 | 57,500 | 63,435 |
| 138-150M3 Steam turbine (West) | 43,000 | 41,500 | 42,261 |
| 160M3 Tri-fuel diesel electric (East) | 47,000 | 43,500 | 52,217 |
| 138-150M3 Steam turbine (East) | 34,000 | 32,000 | 33,522 |
| LPG (KT) | LAST POSTED SPOT RATE ($/mt) | SPOT TCE RATE ($/day) | 1yr TIME CHARTER RATE ($/day) |
| VLGC, 44 (AG-Japan) | 29.29 | 9,211 | 16,447 |
| BUNKERS ($/mt) | IFO 380 | MDO | |
| US Gulf | 421.0 | 673.0 | |
| Rotterdam | 428.5 | 636.0 | |
| Singapore | 454.5 | 672.5 | |
IEA sees global economy driving strong oil demand in 2019.
The agency for the first time announced its oil demand forecast for next year, saying it expects a growth equivalent to 1.4 mbpd. A large portion of that growth is expected to come from rising demand for petrochemicals. However, the IEA said that with its forecasts come higher risk, including potential higher prices, weakening economic confidence, trade protectionism and a stronger US dollar. On the supply side, non-OPEC members are expected to contribute 1.7 mbpd next year compared to around 2 mbpd this year, with the US making up around 75% of that growth. Nonetheless, infrastructure bottlenecks are expected to limit production growth from the US.
Consortium led by Hong Kong's CKI bids $9.8 for Australian gas pipeline group, APA Group.
The A$11 per share offer, as confirmed by APA, values the company at a 33% premium to its closing price on Tuesday. The deal faces potential competition hurdles, for which CKI is proposing to divest a number of its existing Australian assets including pipelines and storage facilities. The offer represents one of the largest takeover attempts in Australia this year. It would test the country's foreign investment rules, after being tightened in Feb., in response to concerns about growing Chinese influence in business, politics and society. CKI and China's state grid were blocked from bidding for a stake in Ausgrid in 2016. Chinese investment then fell to 11% in 2017 from the previous year.
FT June 13, 2018
US exports of jet fuel increase, driven by Latin American and Caribbean countries.
The US exported 186,000 bpd of jet fuel last year, the 11th consecutive year of rising gross jet fuel exports. Nearly 62% went to LATAM and Caribbean countries, especially Mexico (22%). This growth, driven by relatively high domestic production and a growing international aviation industry, has established the US as a net exporter of jet fuel for the seventh straight year. Growth in international tourism is fueling demand for jet fuel as many LATAM and Caribbean countries lack sufficient refining capacity to meet domestic jet fuel demand.
Shell feeds gas into Australia's new Prelude FLNG unit.
The gas was fed from the LNG carrier "Gallina" as part of the cooling process in preparation for start-up. The carrier left the Prelude FLNG port on June 7, according to ship tracking data. Shell did not comment on estimates for a start-up date but reconfirmed that it expected to see cash flow from Prelude in 2018.
Reuters June 12, 2018
| COMMODITIES, (9:44 am ET ) | ||||
| CRUDE | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
| Brent | ICE | $/bbl | 75.68 | -0.20 |
| WTI | NYMEX | $/bbl | 65.98 | -0.38 |
| Dubai (Spot) | Bloomberg | $/bbl | 73.38 | -1.01 |
| PRODUCTS | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
| RBOB Gasoline | NYMEX | ₵/gal | 208.71 | -0.28 |
| Heating Oil | NYMEX | ₵/gal | 215.22 | -0.96 |
| NATURAL GAS | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
| US Henry Hub | NYMEX | $/MMBtu | 2.96 | 0.02 |
| UK National Balancing Point | ICE | $/MMBtu | 7.53 | 0.16 |
| NATURAL GAS LIQUIDS | SOURCE | LAST PRICE (₵/gal) | LAST PRICE ($/mt) | Δ PRIOR DAY CLOSE(₵/gal) |
| US Mont Belvieu Propane (Spot) | Bloomberg | 88.50 | 461.32 | -1.13 |
| PRICE SPREADS ($/bbl) | SOURCE | LAST PRICE | Δ PRIOR DAY CLOSE | |
| Brent 3-2-1 Crack | ICE | 12.62 | -0.01 | |
| MARKETS, ( 9:44 am ET ) | ||||
| EQUITIES | REGION/COUNTRY | LAST VALUE | Δ PRIOR DAY CLOSE | |
| S&P 500 | United States | 2,786.85 | 4.85 | |
| FTSE 100 | United Kingdom | 7,727.37 | 23.56 | |
| DAX | Germany | 12,880.03 | 37.73 | |
| Nikkei | Japan | 22,966.38 | 88.03 | |
| SH Composite | China | 3,049.80 | -30.01 | |
| CURRENCIES | REGION/COUNTRY | LAST VALUE | Δ PRIOR DAY CLOSE | |
| £/$ | United Kingdom | 1.33 | 0.00 | |
| €/$ | European Union | 1.18 | 0.00 | |
| $/JPY ¥ | Japan | 110.43 | 0.06 | |
| $/CNY ¥ | China | 6.40 | 0.00 | |
MARKET ANALYSIS
- Asphalt: Midwest, retail markets rose in most areas last week, with demand staying strong.
- LNG: Stronger than expected spot cargo market conditions, strong sentiment for the winter season and the favorable JKM-NBP spread, continued to create opportunities last week for owners as both single voyages and multi-month requirements surfaced.
- LPG: The West freight market saw a slight increase in activity last week, with two fixtures being reported, though not close to what owners holding USG would have been hoping for.
- US stock futures climb ahead of Fed decision on interest rates.
- Nikkei edges higher ahead of Fed decision.
VESSELS ON ORDER KDWT
(2018-2019+ delivery)
| Vessel | Share of current fleet | Vessel | Share of current fleet |
| VLCC, 200+ | 15% | Panamax, 60-80 | 6% |
| Suezmax, 130 - 200 | 9% | LR1, 60-80 | 6% |
| Aframax, 80-130 | 11% | MR, 42-60 | 10% |
| LR2, 80-130 | 9% | Handymax, 30 - 42 | 3% |
5-YEAR OLD VESSEL PRICES
(June 2014 - June 2018)
