SHIPPING RATES & BUNKERS ( 9:35 am ET ) | |||
DIRTY TANKER (KT - $/day) | VOYAGE | SPOT TCE EARNINGS | 2018 AVG. RATE |
VLCC, 270 | AG-FE | 47,600 | 18,000 |
Suezmax, 130 | WAF-UKC | 22,700 | 9,700 |
Aframax, 70 | CAR-USG | 38,600 | 12,000 |
Panamax, 50 | CAR-USG | 16,500 | 8,800 |
CLEAN TANKER (KT - $/day) | VOYAGE | SPOT TCE EARNINGS | 2018 AVG. RATE |
MR, 37 | UKC-USAC | 22,300 | 6,700 |
MR, 38 | USG-UKC | 20,800 | 2,200 |
TIME CHARTER (KDWT) | 1YR ECO RATE ($/day) | NEWBUILD PRICE ($M ) | SECONDHAND 5YR PRICE ($M) |
VLCC , 200+ | 37,000 | 92.0 | 64.0 |
Suezmax, 130-200 | 24,000 | 62.0 | 44.5 |
Aframax, 80-130 | 19,000 | 48.0 | 31.0 |
LR2, 80-130 | 18,500 | 50.0 | 32.0 |
LR1, 60-80 | 14,250 | 43.0 | 25.0 |
MR, 42-60 | 14,500 | 36.0 | 26.0 |
Handymax. 30-42 | 13,000 | 33.0 | 24.0 |
US FLAG (KT - $/day) | VOYAGE | WEEKLY SPOT RATE | 2018 AVG. RATE |
Handy, 38 | USG-USAC | 67,563 | 61,390 |
LNG ($/day) | WEEKLY SPOT RATE | CURRENT MONTH RATE | 2018 AVG. RATE |
160M3 Tri-fuel diesel electric (West) | 120,000 | 120,000 | 79,408 |
138-150M3 Steam turbine (West) | 90,000 | 90,000 | 56,776 |
160M3 Tri-fuel diesel electric (East) | 140,000 | 140,000 | 79,735 |
138-150M3 Steam turbine (East) | 95,000 | 95,000 | 52,612 |
LPG (KT) | LAST POSTED SPOT RATE ($/mt) | SPOT TCE RATE ($/day) | 1yr TIME CHARTER RATE ($/day) |
VLGC, 44 (AG-Japan) | 36.50 | 21,382 | 21,382 |
BUNKERS ($/mt) | IFO 380 | MDO | |
US Gulf | 370.5 | 599.5 | |
Rotterdam | 360.5 | 538.5 | |
Singapore | 405.0 | 554.5 |
ENERGY NEWS
Exxon to develop Australian natural gas project along with BHP.
The two companies said they approved development of the west Barracouta gas field in the Gippsland Basin in Australia, to bring fresh gas to Australian domestic markets. Exxon said the project is part of its existing investment portfolio in the Gippsland Basin, while BHP said it will invest about $144.36M in the field. The Gippsland Basin joint venture covers about 40% of Australia's east coast gas demand. Natural gas prices in Australia, and especially on the east coast, have surged in recent years to the point where they have become a political issue.
Global oil producers agree to min. $60 bbl.
According to the IEA, coordinated action among global oil producers to curtail supply has helped put a "floor" under crude prices around $60 bbl. The IEA said the agreement is targeted to bringing relative stability and a balance to the market. So far, Brent crude prices seem to have found a floor, added the agency. Prices hit $86 bbl in Oct. on fears of a squeeze, but Brent fell to below $60 as producers overcompensated and importers received waivers from US sanctions on Iran. For Saudi Arabia and Russia, lower prices would strain their budgets.
US solar slowed by tariffs.
Installations of new solar power capacity in the US slowed in Q3 to the weakest rate since 2015 as the US imposes tariffs on imported panels. The cost of solar power has plummeted in recent years, making it more attractive and competitive against fossil fuel generation. Despite that, the pace of development in the sector has been significantly dependent on federal government policy, such as tax credits and tariffs. While the tariffs were imposed to protect US manufacturers, the Solar Energy Industries Association claims that tariffs had put a brake on investment and cost more than 20,000 jobs.
Qatar's exit from OPEC frees it from US legal concerns.
The country's Energy Minister and CEO of Qatar Petroleum (QP), Saad al-Kaabi, has been concerned about the OPEC membership for a long time. Al-Kaabi believes an OPEC membership could become a hurdle for QP's ambitions in the US, where it has one of the biggest LNG terminals and a distraction from its gas production plans. A proposed legislation in the US, called NOPEC, could expose members of the group to antitrust lawsuits. This poses a risk to QP at a time where it hopes to ramp up its investment in the US. QP is the majority owner of Golden Pass LNG in Texas, with potential plans to up its investment in the project. QP is also considering buying more US gas assets. Leaving OPEC would take Doha out of the debate within the US.
COMMODITIES, (9:35 am ET ) | ||||
CRUDE | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
Brent | ICE | $/bbl | 59.89 | -0.26 |
WTI | NYMEX | $/bbl | 50.72 | -0.43 |
Dubai (Spot) | Bloomberg | $/bbl | 58.93 | -0.81 |
PRODUCTS | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
RBOB Gasoline | NYMEX | ₵/gal | 142.60 | +0.56 |
Heating Oil | NYMEX | ₵/gal | 183.93 | -1.16 |
NATURAL GAS | SOURCE | UNIT | LAST PRICE | Δ PRIOR DAY CLOSE |
US Henry Hub | NYMEX | $/MMBtu | 4.28 | +0.15 |
UK National Balancing Point | ICE | $/MMBtu | 8.42 | +0.08 |
NATURAL GAS LIQUIDS | SOURCE | LAST PRICE (₵/gal) | LAST PRICE ($/mt) | Δ PRIOR DAY CLOSE(₵/gal) |
US Mont Belvieu Propane (Spot) | Bloomberg | 69.00 | 359.68 | +0.63 |
PRICE SPREADS ($/bbl) | SOURCE | LAST PRICE | Δ PRIOR DAY CLOSE | |
Brent 3-2-1 Crack | ICE | 5.73 | +0.23 |
MARKETS
MARKETS, ( 9:35 am ET ) | ||||
EQUITIES | REGION/COUNTRY | LAST VALUE | Δ PRIOR DAY CLOSE | |
S&P 500 | United States | 2,651.07 | +14.29 | |
FTSE 100 | United Kingdom | 6,871.89 | -8.30 | |
DAX | Germany | 10,958.49 | +29.06 | |
Nikkei | Japan | 21,816.19 | +213.44 | |
SH Composite | China | 2,634.05 | +31.90 | |
CURRENCIES | REGION/COUNTRY | LAST VALUE | Δ PRIOR DAY CLOSE | |
£/$ | United Kingdom | 1.26 | +0.00 | |
€/$ | European Union | 1.13 | -0.00 | |
$/JPY ¥ | Japan | 113.56 | +0.27 | |
$/CNY ¥ | China | 6.88 | +0.00 |
MARKET ANALYSIS
DEMOLITION VALUE ASSESSMENTS
(US$MILLIONS)
DOE US INVENTORY (mb) | Week ended Dec. 7 | Δ Prior week | Δ Prior year |
Crude | 441.95 | -1.21 | -1.03 |
Distillate | 124.14 | -1.48 | -3.94 |
Gasoline | 228.34 | 2.09 | 1.79 |
EIA US WEEKLY ENDING STOCKS OF CRUDE OIL & PETROLEUM PRODUCTS
(Dec. 8, 2017 - Dec. 7, 2018)