Aug 09, 2018 

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SHIPPING RATES & BUNKERS

SHIPPING RATES & BUNKERS ( 9:30 am ET )
       
DIRTY TANKER (KT - $/day) VOYAGE SPOT TCE EARNINGS 2018 AVG. RATE
VLCC, 270   AG-FE 13,400 9,600
Suezmax, 130  WAF-UKC 4,400 5,100
Aframax, 70 CAR-USG 3,100 5,700
Panamax, 50  CAR-USG 6,100 6,400
       
CLEAN TANKER (KT - $/day) VOYAGE SPOT TCE EARNINGS 2018 AVG. RATE
MR, 37  UKC-USAC 1,400 6,800
MR, 38  USG-UKC (3,400) 900
       
TIME CHARTER (KDWT) 1YR ECO RATE ($/day) NEWBUILD PRICE ($M ) SECONDHAND 5YR PRICE ($M)
VLCC , 200+ 26,000 88.0 61.0
Suezmax, 130-200 17,750 60.0 42.0
Aframax, 80-130 16,000 48.0 30.0
LR2, 80-130 16,000 50.0 31.0
LR1, 60-80 13,750 42.0 28.0
MR, 42-60 13,750 35.5 26.0
Handymax. 30-42 12,500 33.0 23.0
       
US FLAG (KT - $/day) VOYAGE WEEKLY SPOT RATE 2018 AVG. RATE
Handy, 38 USG-USAC 58,063 62,938
       
LNG ($/day) WEEKLY SPOT RATE CURRENT MONTH RATE 2018 AVG. RATE
160M3 Tri-fuel diesel electric (West) 74,000 74,000 66,452
138-150M3 Steam turbine (West) 56,000 56,000 46,097
160M3 Tri-fuel diesel electric (East) 63,000 63,000 55,484
138-150M3 Steam turbine (East) 44,000 44,000 36,581
       
LPG (KT) LAST POSTED SPOT RATE ($/mt) SPOT TCE RATE ($/day)                         1yr TIME CHARTER RATE ($/day)                    
VLGC, 44 (AG-Japan) 39.21 21,053 17,270
       
BUNKERS ($/mt) IFO 380  MDO   
US Gulf 433.5 677.5  
Rotterdam 429.0 624.5  
Singapore 470.0 657.5  

ENERGY NEWS

Oil supplies to Canada will not be affected by diplomatic row, says Saudi Energy Minister.

The Kingdom, responding furiously to Canada's demand that jailed activists be released immediately, expelled the Canadian ambassador, blocked imports of Canadian grain and ended state-sponsored educational and medical programs in Canada. Riyadh reassured its oil customers in Canada after it froze new trade and ruled out mediation efforts. When it comes to oil, Saudi Arabia has a "firm and long-standing policy" that petroleum supplies are not influenced by political considerations, said Minister Khalid al-Falih. The current diplomatic crisis will not, in any way, impact Saudi Aramco's relations with its customers in Canada, he added. Bilateral trade between the two countries is worth more than $3B a year.

Reuters Aug 9, 2018

DHT considers funding VLCC scrubber project.

The shipowner is working with Alfa Laval to retrofit scrubbers on 12 VLCCs built between 2004 and 2012. Capital expenditure on the project hits $55M, with yard space secured to complete all of the dry-dockings in 2019. Co-chief executive Svein Moxnes Harfjeld said many proposals to finance the project have been received. Based on the present fuel price spread, he says a standard VLCC fitted with a scrubber will have a $12,000 per day advantage on a TCE basis and the payback on such investments may be less than one year. According to Evercore, 14 of DHT's 27 VLCCs are set to be scrubber-ready by the beginning of 2020.

TradeWinds Aug 9, 2018

Danish offshore wind powerhouse Orsted to acquire US firm Lincoln Clean Energy (LCE).

The deal gives the US firm a value of $580M. Orsted said LCE had an "attractive" portfolio, including 513 MW of recently commissioned wind and solar assets. Meanwhile, Orsted has installed 5.1 GW of offshore wind capacity in Europe, with 3.8 GW currently under construction. LCE's current management team will continue to run the company as it would exist as a separate unit outside of the Danish firm's wind power business. The transaction remains subject to approval from US competition authorities and is expected to close before year-end.

CNBC Aug 9, 2018

US coal cargoes head to China as Beijing prepares for new tariffs.

At least four cargoes of US coal worth $30M are headed to China as Beijing prepares to hit imports with 25% tariffs, threatening a niche supply of the fuel. The vessels, carrying a combined 335,000 tons of coal, are the only confirmed US cargoes en-route to China and are scheduled to arrive in time to avoid new duties. Last night, China published its final list of US items worth $16B in imports that will incur an additional 25% tariff, including coal. These penalties are set to take effect on Aug. 23. The US shipped 3.2MT of coal to China last year, up from less than 700 tons in 2016.

Reuters Aug 9, 2018

COMMODITIES

COMMODITIES, (9:20 am ET )
         
CRUDE SOURCE UNIT LAST PRICE Δ PRIOR DAY CLOSE
Brent  ICE $/bbl 72.53 0.25
WTI NYMEX $/bbl 67.02 0.08
Dubai (Spot) Bloomberg $/bbl 71.08 -2.09
         
PRODUCTS SOURCE UNIT LAST PRICE Δ PRIOR DAY CLOSE
RBOB Gasoline  NYMEX ₵/gal 201.13 -0.82
Heating Oil  NYMEX ₵/gal 212.22 0.65
         
NATURAL GAS SOURCE UNIT LAST PRICE Δ PRIOR DAY CLOSE
US Henry Hub  NYMEX $/MMBtu 2.95 0.00
UK National Balancing Point ICE $/MMBtu 7.79 0.03
         
NATURAL GAS  LIQUIDS SOURCE LAST PRICE (₵/gal) LAST PRICE ($/mt) Δ PRIOR DAY CLOSE(₵/gal)
US Mont Belvieu Propane (Spot) Bloomberg 96.25 501.72 -2.87
         
PRICE SPREADS ($/bbl) SOURCE LAST PRICE Δ PRIOR DAY CLOSE
Brent 3-2-1 Crack  ICE 10.60 -0.23

MARKETS

MARKETS, ( 9:20 am ET )
         
EQUITIES REGION/COUNTRY LAST VALUE Δ PRIOR DAY CLOSE
S&P 500 United States 2,857.70 -0.75
FTSE 100 United Kingdom 7,729.82 -46.83
DAX Germany 12,680.14 46.60
Nikkei Japan 22,598.39 -45.92
SH Composite China 2,794.38 50.31
         
CURRENCIES REGION/COUNTRY LAST VALUE Δ PRIOR DAY CLOSE
£/$ United Kingdom 1.29 0.00
€/$ European Union 1.16 0.00
$/JPY ¥ Japan 110.98 -0.40
$/CNY ¥ China 6.82 -0.02

MARKET ANALYSIS

  • Asphalt: Wholesale selling prices last week climbed in some areas for flux and asphalt cement in the Midwest.
  • LNG: Interest in the Atlantic remained tentative last week with potential for additional chartering activity, but these opportunities did not materialized by the end of the week.
  • LPG: Of the total 37 VLGCs on order, all scheduled for delivery before the end of 2020, Poten counts 17 vessels to be constructed with scrubbers and just 2 vessels will have dual-fuel capability.
  • Oil prices rise as US sanctions on Iran come into effect.
  • US weekly jobless claims unexpectedly fall despite trade tensions.

DOE US INVENTORY (mb)

Product Week ended            Aug 3  Δ Prior week Δ Prior year
Crude 407.39 -1.35 -68.05
Distillate 125.43 1.23 -22.26
Gasoline 233.87 2.90 2.77

EIA US WEEKLY ENDING STOCKS OF CRUDE OIL & PETROLEUM PRODUCTS
(Aug 4, 2017 - Aug 3, 2018)

EIA US weekly ending stocks Aug 9, 2018

POTEN EVENTS

Sept. 17-20: Gastech, Barcelona, Poten sponsoring. 

WORLD EVENTS

Aug 10: Baker Hughes Rig Count, 1:00pm, ET.

Aug 10: Baker Hughes Rig Count, 1:00pm, ET.

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