Dec 06, 2018 

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SHIPPING RATES & BUNKERS

SHIPPING RATES & BUNKERS ( 9:40 am ET )
       
DIRTY TANKER (KT - $/day) VOYAGE SPOT TCE EARNINGS 2018 AVG. RATE
VLCC, 270   AG-FE 57,100 17,400
Suezmax, 130  WAF-UKC 30,400 9,300
Aframax, 70 CAR-USG 9,700 11,700
Panamax, 50  CAR-USG 12,800 8,700
       
CLEAN TANKER (KT - $/day) VOYAGE SPOT TCE EARNINGS 2018 AVG. RATE
MR, 37  UKC-USAC 18,800 6,400
MR, 38  USG-UKC 20,800 1,800
       
TIME CHARTER (KDWT) 1YR ECO RATE ($/day) NEWBUILD PRICE ($M ) SECONDHAND 5YR PRICE ($M)
VLCC , 200+ 33,000 90.0 62.0
Suezmax, 130-200 24,000 60.0 44.0
Aframax, 80-130 19,000 50.0 30.0
LR2, 80-130 18,500 52.0 31.0
LR1, 60-80 14,250 43.0 26.0
MR, 42-60 14,500 36.0 26.0
Handymax. 30-42 13,000 33.0 23.0
       
US FLAG (KT - $/day) VOYAGE WEEKLY SPOT RATE 2018 AVG. RATE
Handy, 38 USG-USAC 64,116 61,262
       
LNG ($/day) WEEKLY SPOT RATE CURRENT MONTH RATE 2018 AVG. RATE
160M3 Tri-fuel diesel electric (West) 140,000 130,000 78,563
138-150M3 Steam turbine (West) 100,000 94,000 56,083
160M3 Tri-fuel diesel electric (East) 180,000 177,000 78,479
138-150M3 Steam turbine (East) 110,000 114,000 51,729
       
LPG (KT) LAST POSTED SPOT RATE ($/mt) SPOT TCE RATE ($/day) 1yr TIME CHARTER RATE ($/day)                    
VLGC, 44 (AG-Japan) 40.89 25,822 21,382
       
BUNKERS ($/mt) IFO 380  MDO   
US Gulf 382.0 615.0  
Rotterdam 379.5 542.5  
Singapore 422.0 566.0  

ENERGY NEWS

Iraq requires two years to free itself from reliance on Iranian gas.

According to an Iraqi energy official, the country needs at least two years to boost its gas production to a level that allows it to stop importing Iranian gas used to feed its power stations. The head of state-run South Gas Co (SGC) said that Iraq's gas output is expected to reach 1.3 McFee/d by the end of 2020, an increase of 400 McFee/d from current levels. This rise in production is expected to come from two new projects, including a $367M natural gas processing deal with GE, expected to begin producing 160 mcf/d in two years. The government will also sign another deal early next year for a gas plant expected to produce around 300 mcf/day by the end of 2019. The US has granted Iraq exemptions, which allow it to continue importing natural gas and other energy supplies from Iran for 45 days as long as the payments are not done in US dollars. Iraq is hoping to extend the exemption.

Reuters Dec. 6 2018

Novatek to launch small-scale LNG plant in Baltic Sea.

Russia's largest non-state natural gas producer, along with Gazprombank, is building a LNG plant and terminal in the Baltic Sea port of Vysotsk with a capacity of 660,000 tones per year. Capacity could be expanded to 800,000 tonnes in 2021. The project's contractor said the plan is to launch operations and load the first LNG cargo in Feb. 2019.

Reuters Dec. 6, 2018

India to import Iranian oil using rupee payment mechanism.

50% of rupee-based payments will be used for exporting items to Tehran. India's state-owned UCO Bank is expected to announce the payment mechanism in the next 10 days. Government documents indicate that an agreement had been signed by the two governments. Russian and Chinese shipping companies are reportedly pitching to facilitate India-Iran trade.

Reuters Dec. 6, 2018

Traders Vitol, Glencore, and Trafigura face bribery probe.

The commodity traders are being investigated on suspicion of paying bribes to employees of state-controlled oil company Petrobras in exchange for contracts. Brazilian prosecutors speculate that between 2011 and 2014, the three companies paid more than $15.3M in relation to over 160 operations "of purchase and sale of oil products and rental of storage tanks". Other unnamed companies are also being investigated for paying a similar amount in bribes to Petrobras' employees. This is part of a sweeping corruption campaign that has so far resulted in the arrest of 11 people and the questioning of an additional 26. Petrobras this year agreed to pay two large settlements; one for $2.95B in Jan. to end a class-action lawsuit in the US from losses caused by the scandal, as well as another graft-related one for $853.2M in Sept. to Brazilian and US authorities.

FT Dec. 5, 2018

COMMODITIES

COMMODITIES, (9:55 am ET )
         
CRUDE SOURCE UNIT LAST PRICE Δ PRIOR DAY CLOSE
Brent  ICE $/bbl 60.50 -1.06
WTI NYMEX $/bbl 51.71 -1.18
Dubai (Spot) Bloomberg $/bbl 59.33 -0.90
         
PRODUCTS SOURCE UNIT LAST PRICE Δ PRIOR DAY CLOSE
RBOB Gasoline  NYMEX ₵/gal 143.07 -1.49
Heating Oil  NYMEX ₵/gal 186.10 -2.76
         
NATURAL GAS SOURCE UNIT LAST PRICE Δ PRIOR DAY CLOSE
US Henry Hub  NYMEX $/MMBtu 4.31 -0.16
UK National Balancing Point ICE $/MMBtu 8.14 -0.11
         
NATURAL GAS  LIQUIDS SOURCE LAST PRICE (₵/gal) LAST PRICE ($/mt) Δ PRIOR DAY CLOSE(₵/gal)
US Mont Belvieu Propane (Spot) Bloomberg 74.50 388.35 +1.00
         
PRICE SPREADS ($/bbl) SOURCE LAST PRICE Δ PRIOR DAY CLOSE
Brent 3-2-1 Crack  ICE 5.62 +0.26

MARKETS

MARKETS, ( 9:55 am ET )
         
EQUITIES REGION/COUNTRY LAST VALUE Δ PRIOR DAY CLOSE
S&P 500 United States 2,662.60 -37.46
FTSE 100 United Kingdom 6,753.68 -168.16
DAX Germany 10,905.26 -294.98
Nikkei Japan 21,501.62 -417.71
SH Composite China 2,605.18 -44.62
         
CURRENCIES REGION/COUNTRY LAST VALUE Δ PRIOR DAY CLOSE
£/$ United Kingdom 1.28 +0.00
€/$ European Union 1.14 +0.00
$/JPY ¥ Japan 112.32 -0.87
$/CNY ¥ China 6.88 +0.03

MARKET ANALYSIS

  • Asphalt: Gulf Coast retail asphalt and flux prices remained unchanged last week
  • LNG: The Atlantic and Middle East continued to be quiet last week with little fixture activity and discussions for prompt tonnage. However, Atlantic Basin discussions were picking up for tonnage for late Dec./Jan. loading.
  • LPG: Following a trio of concluded resale transactions in Nov., the tally of sales for second hand VLGCs has reached 19 this year to date, roughly equivalent to the total number of deals through the previous four years combined, according to Poten.

DOE US INVENTORY (mb)

Product Week ended 
Nov. 23
Δ Prior week Δ Prior year
Crude 450.49 3.58 -3.23
Distillate 121.80 2.61 -5.98
Gasoline 224.55 -0.76 10.45

EIA US WEEKLY ENDING STOCKS OF CRUDE OIL & PETROLEUM PRODUCTS (Nov. 24, 2017 - Nov. 23, 2018)

EIA US weekly ending stocks Nov 29, 2018

POTEN EVENTS

Jan. 28-30: European Gas Conference, Vienna, Austria. Oleg Vukmanovic speaking.

WORLD EVENTS

Dec. 6: EIA Natural Gas Report, 11:00am, ET. 

Dec. 7: Baker Hughes Rig Count 1:00pm, ET.

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