| SHIPPING RATES & BUNKERS ( 9:45 am ET ) | |||
| DIRTY TANKER (KT - $/day) | VOYAGE | SPOT TCE EARNINGS | 2018 AVG. RATE |
| VLCC, 270 | AG-FE | 37,000 | 11,600 |
| Suezmax, 130 | WAF-UKC | 20,500 | 5,600 |
| Aframax, 70 | CAR-USG | 15,300 | 7,500 |
| Panamax, 50 | CAR-USG | 3,900 | 6,700 |
| CLEAN TANKER (KT - $/day) | VOYAGE | SPOT TCE EARNINGS | 2018 AVG. RATE |
| MR, 37 | UKC-USAC | 5,000 | 6,100 |
| MR, 38 | USG-UKC | (700) | 600 |
| TIME CHARTER (KDWT) | 1YR ECO RATE ($/day) | NEWBUILD PRICE ($M ) | SECONDHAND 5YR PRICE ($M) |
| VLCC , 200+ | 26,000 | 90.0 | 61.0 |
| Suezmax, 130-200 | 19,000 | 60.0 | 42.0 |
| Aframax, 80-130 | 16,500 | 48.0 | 29.0 |
| LR2, 80-130 | 15,250 | 50.0 | 30.0 |
| LR1, 60-80 | 13,750 | 43.0 | 26.0 |
| MR, 42-60 | 13,500 | 36.0 | 25.5 |
| Handymax. 30-42 | 12,500 | 33.0 | 23.0 |
| US FLAG (KT - $/day) | VOYAGE | WEEKLY SPOT RATE | 2018 AVG. RATE |
| Handy, 38 | USG-USAC | 55,965 | 61,479 |
| LNG ($/day) | WEEKLY SPOT RATE | CURRENT MONTH RATE | 2018 AVG. RATE |
| 160M3 Tri-fuel diesel electric (West) | 90,000 | 90,000 | 70,525 |
| 138-150M3 Steam turbine (West) | 68,000 | 68,000 | 49,975 |
| 160M3 Tri-fuel diesel electric (East) | 110,000 | 110,000 | 61,425 |
| 138-150M3 Steam turbine (East) | 70,000 | 70,000 | 41,075 |
| LPG (KT) | LAST POSTED SPOT RATE ($/mt) | SPOT TCE RATE ($/day) | 1yr TIME CHARTER RATE ($/day) |
| VLGC, 44 (AG-Japan) | 47.93 | 27,138 | 19,737 |
| BUNKERS ($/mt) | IFO 380 | MDO | |
| US Gulf | 477.5 | 763.0 | |
| Rotterdam | 482.0 | 705.5 | |
| Singapore | 525.0 | 754.0 | |
ENERGY NEWS
Trump raises ethanol use in gasoline ahead of elections.
The administration has announced lifting the ban on summer sales of gasoline blended with 15% ethanol. The move is supposed to boost ethanol demand while also cutting costs for refiners. It also is designed to politically support Republican candidates in the Midwest facing a harsh farming economy. In a Iowa rally, Trump warned the audience that Democrats would "end ethanol" if given the chance. Iowa is the US' biggest producer of corn, and farmers there are suffering from falling corn and soybean prices due to a trade war between the US and China. The Administration hopes to pull pump prices down, which are 40 cents higher than a year ago.
Chevron marks first oil major exiting Norway.
The US oil firm will become the first major to formally abandon the Norwegian continental shelf as it transfers its last stake in an exploration license. Rivals such as Exxon, BP and Shell have scaled back their presence in the area by selling or merging their assets in the mature region in order to concentrate on growth elsewhere. The US oil major has agreed to transfer its 20% stake in exploration licenses in the Arctic to Norway's DNO. Chevron is also looking to sell assets in the British North Sea in order to focus on growing US onshore shale production as well as the Tengiz field in Kazakhstan.
Reuters Oct. 10, 2018
European environment ministers agree to 35% vehicle emissions cut by 2030.
Germany had insisted on a maximum 30% cut, but agreed to strike the deal after it won a concession to conduct an interim review of the rules. Germany's position had been supported by car-producing nations such as Bulgaria, the Czech Republic, Hungary and Poland. The 35% reduction of carbon dioxide emitted must be from recorded levels in 2020. The agreement also includes an intermediate target of a 15% reduction by 2025.
Gunvor sees the US as main beneficiary of new IMO shipping regulations.
The UN's IMO is imposing new rules that will ban ships from using fuels with a sulfur content in excess of 0.5% from 2020, unless they are equipped with scrubbers. As a result, a demand hike for cleaner distillates like diesel is expected to come at the expense of fuel oil. Gunvor's CEO said that the US will be the major overall winner.
| COMMODITIES, (9:35 am ET ) | ||||
| CRUDE | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
| Brent | ICE | $/bbl | 84.42 | -0.58 |
| WTI | NYMEX | $/bbl | 74.45 | -0.51 |
| Dubai (Spot) | Bloomberg | $/bbl | 83.13 | +0.21 |
| PRODUCTS | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
| RBOB Gasoline | NYMEX | ₵/gal | 206.36 | -1.38 |
| Heating Oil | NYMEX | ₵/gal | 241.55 | -0.83 |
| NATURAL GAS | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
| US Henry Hub | NYMEX | $/MMBtu | 3.33 | +0.07 |
| UK National Balancing Point | ICE | $/MMBtu | 9.36 | -0.10 |
| NATURAL GAS LIQUIDS | SOURCE | LAST PRICE (₵/gal) | LAST PRICE ($/mt) | Δ PRIOR DAY CLOSE(₵/gal) |
| US Mont Belvieu Propane (Spot) | Bloomberg | 104.50 | 544.73 | +0.37 |
| PRICE SPREADS ($/bbl) | SOURCE | LAST PRICE | Δ PRIOR DAY CLOSE | |
| Brent 3-2-1 Crack | ICE | 7.37 | -0.66 | |
MARKETS
| MARKETS, ( 9:35 am ET ) | ||||
| EQUITIES | REGION/COUNTRY | LAST VALUE | Δ PRIOR DAY CLOSE | |
| S&P 500 | United States | 2,884.43 | -1.14 | |
| FTSE 100 | United Kingdom | 7,201.11 | -32.22 | |
| DAX | Germany | 11,893.71 | -53.45 | |
| Nikkei | Japan | 23,469.39 | -314.33 | |
| SH Composite | China | 2,721.01 | +4.50 | |
| CURRENCIES | REGION/COUNTRY | LAST VALUE | Δ PRIOR DAY CLOSE | |
| £/$ | United Kingdom | 1.31 | -0.00 | |
| €/$ | European Union | 1.15 | -0.00 | |
| $/JPY ¥ | Japan | 113.26 | +0.03 | |
| $/CNY ¥ | China | 6.93 | -0.01 | |
MARKET ANALYSIS
- Asphalt: East Coast asphalt prices were unmoved last week, with some areas slipping.
- Chartering interest surfaced again last week, focused mostly in the Far East on the back of firm Project/Majors/Traders structural needs during the winter period. Discussions in the basin continued based on loadings during Oct. and Nov. for single and multi-month voyages.
- LPG: On the back of a tight USG position list for early month dates rate levels firmed close to mid $80s pmt Houston - Chiba via Panama last week with the major Owner's asking level around the $85 pmt.
- Oil prices slip lower as the IMF cuts its outlook, but remain supported by concerns over supply stoppage due to Hurricane Michael.
- Pound hits multi-month high levels on renewed Brexit deal hopes.
DEMOLITION VALUE ASSESSMENTS (US$MILLIONS)
| VESSEL | Current | 3 Mos. Ago | 1 Year Ago |
| VLCC | 19.1 | 18.5 | 17.4 |
| Suezmax | 10.5 | 10.1 | 9.5 |
| Aframax | 7.3 | 7.0 | 6.6 |
| Panamax | 6.1 | 5.9 | 5.6 |
HISTORICAL DEMOLITION PRICES
