| SHIPPING RATES & BUNKERS ( 9:26 am ET ) | |||
| DIRTY TANKER (KT - $/day) | VOYAGE | SPOT TCE EARNINGS | 2018 AVG. RATE |
| VLCC, 270 | AG-FE | 19,000 | 8,800 |
| Suezmax, 130 | WAF-UKC | 5,700 | 700 |
| Aframax, 70 | CAR-USG | 14,600 | 6,200 |
| Panamax, 50 | CAR-USG | 6,000 | 6,700 |
| CLEAN TANKER (KT - $/day) | VOYAGE | SPOT TCE EARNINGS | 2018 AVG. RATE |
| MR, 37 | UKC-USAC | 1,600 | 8,300 |
| MR, 38 | USG-UKC | (3,600) | 1,700 |
| TIME CHARTER (KDWT) | 1YR ECO RATE ($/day) | NEWBUILD PRICE ($M ) | SECONDHAND 5YR PRICE ($M) |
| VLCC , 200+ | 25,000 | 88.0 | 61.5 |
| Suezmax, 130-200 | 17,750 | 60.0 | 41.0 |
| Aframax, 80-130 | 16,500 | 48.0 | 30.0 |
| LR2, 80-130 | 16,750 | 50.0 | 31.0 |
| LR1, 60-80 | 13,750 | 42.0 | 28.0 |
| MR, 42-60 | 14,000 | 35.5 | 26.5 |
| Handymax. 30-42 | 12,750 | 33.0 | 23.0 |
| US FLAG (KT - $/day) | VOYAGE | WEEKLY SPOT RATE | 2018 AVG. RATE |
| Handy, 38 | USG-USAC | 64,971 | 64,200 |
| LNG ($/day) | WEEKLY SPOT RATE | CURRENT MONTH RATE | 2018 AVG. RATE |
| 160M3 Tri-fuel diesel electric (West) | 73,000 | 62,667 | 63,833 |
| 138-150M3 Steam turbine (West) | 50,000 | 44,333 | 42,583 |
| 160M3 Tri-fuel diesel electric (East) | 64,000 | 50,333 | 52,708 |
| 138-150M3 Steam turbine (East) | 45,000 | 36,333 | 34,000 |
| LPG (KT) | LAST POSTED SPOT RATE ($/mt) | SPOT TCE RATE ($/day) | 1yr TIME CHARTER RATE ($/day) |
| VLGC, 44 (AG-Japan) | 29.75 | 9,211 | 16,447 |
| BUNKERS ($/mt) | IFO 380 | MDO | |
| US Gulf | 416.5 | 669.5 | |
| Rotterdam | 416.5 | 621.5 | |
| Singapore | 446.0 | 649.5 | |
OPEC nears deal to boost output.
Saudi Arabia made an early announcement that the group and its fellow non-members will target an increase of 1 mbpd to help lower oil prices. Iran, which had previously opposed any rise in output, has signaled its willingness to accept the deal. OPEC and non-members led by Russia will meet this week in Vienna to discuss the potential agreement. The Saudi plan would consist of a first hike in output of 500,000 bpd in Q3 of this year, followed by another 500,000 bpd rise in Q4. However, sources familiar with the deal say that ultimately output constraints will result in an output rise closer to 600,000.
Oil firms expected to drill off Norway this year.
Oil firms are expected to drill 40-50 exploration wells off Norway in 2018 compared to the 36 drilled in 2017, according to the Norwegian Petroleum Directorate. The Norwegian continental shelf still holds an estimated 4 Bcm of oil equivalents in undiscovered petroleum resources. Two-thirds of this is located in the Arctic Barents Sea. However, half of the estimated undiscovered resources in the Barents Sea are located north of the areas currently open for petroleum activities.
Reuters June 21, 2018
East Libyan forces retake key oil ports.
Following an armed militia attack last week, East Libyan forces have retaken vital oil ports - Es Sider and Ras Lanuf. Earlier this week, Libya's National Oil Corporation announced that the oil terminals suffered "catastrophic damage" as a result of the clashes with fires that destroyed at least two storage tanks.
PDVSA's exports fall in June.
Amid growing output declines, seizures of some Caribbean assets and the resulting shipping backlog, Venezuelan PDVSA's oil exports fell 32% in the first half of June compared with May. Specifically, PDVSA exported 765,000 bpd in the first two-weeks of June, a 368,000 bpd drop versus the 1.133 mbpd shipped in May.
Violent insurgency threatens Mozambique gas.
A mysterious insurgency in Mozambique has killed at least 39 people since the start of May. The unknown group is apparently seeking to impose a militant form of Islam in Cabo Delgado, not far from one of the world's largest untapped offshore gas fields. Mozambican armed forces have launched a crackdown in the far north but has been unable to capture the insurgents. So far, no gas installation has been targeted and the violence onshore is, at present, unlikely to disrupt the more than $30B in planned investment, mostly offshore. Companies involved in gas projects include Anadarko, Eni and Exxon. Last week the US embassy advised citizens to leave Palma, where Anadarko is building an onshore LNG terminal.
FT June 20, 2018
| CRUDE | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
| Brent | ICE | $/bbl | 73.02 | -1.72 |
| WTI | NYMEX | $/bbl | 64.90 | -1.32 |
| Dubai (Spot) | Bloomberg | $/bbl | 70.17 | -2.19 |
| PRODUCTS | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
| RBOB Gasoline | NYMEX | ₵/gal | 200.43 | -1.92 |
| Heating Oil | NYMEX | ₵/gal | 207.17 | -3.54 |
| NATURAL GAS | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
| US Henry Hub | NYMEX | $/MMBtu | 2.99 | 0.03 |
| UK National Balancing Point | ICE | $/MMBtu | 6.88 | -0.03 |
| NATURAL GAS LIQUIDS | SOURCE | LAST PRICE (₵/gal) | LAST PRICE ($/mt) | Δ PRIOR DAY CLOSE(₵/gal) |
| US Mont Belvieu Propane (Spot) | Bloomberg | 85.25 | 444.38 | -0.38 |
| PRICE SPREADS ($/bbl) | SOURCE | LAST PRICE | Δ PRIOR DAY CLOSE | |
| Brent 3-2-1 Crack | ICE | 11.75 | 0.62 | |
| MARKETS, ( 9:40 am ET ) | ||||
| EQUITIES | REGION/COUNTRY | LAST VALUE | Δ PRIOR DAY CLOSE | |
| S&P 500 | United States | 2,767.32 | 0.00 | |
| FTSE 100 | United Kingdom | 7,584.74 | -42.66 | |
| DAX | Germany | 12,598.41 | -96.75 | |
| Nikkei | Japan | 22,693.04 | 137.61 | |
| SH Composite | China | 2,875.81 | -39.92 | |
| CURRENCIES | REGION/COUNTRY | LAST VALUE | Δ PRIOR DAY CLOSE | |
| £/$ | United Kingdom | 1.33 | 0.01 | |
| €/$ | European Union | 1.16 | 0.00 | |
| $/JPY ¥ | Japan | 110.15 | -0.21 | |
| $/CNY ¥ | China | 6.49 | 0.02 | |
MARKET ANALYSIS
- Asphalt: Midwest barges were steady last week, but rail wholesale price range climbed higher while Flux was steady.
- LNG: With prompt vessels quickly being absorbed and multi-month forward fixing, a significant effect on commercial terms has now been experienced.
- LPG: Propane’s spread to naphtha has averaged minus $114 pmt in 2018 to date compared to minus $45 pmt in 2017.
- US dollar this 11-month peak, oil slides ahead of OPEC meeting.
- Emerging stocks sent lower on trade concerns and strong dollar.
DOE US INVENTORY (mb)
| DOE US INVENTORY (mb) | Week ended June 15 | Δ Prior week | Δ Prior year | |
| Crude | 426.53 | -5.91 | -82.57 | |
| Distillate | 117.41 | 2.72 | -35.09 | |
| Gasoline | 96.70 | 3.28 | -1.83 | |
EIA US WEEKLY ENDING STOCKS OF CRUDE OIL & PETROLEUM PRODUCTS
(June 16, 2017 - June 15, 2018)
