Dec 13, 2018 

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SHIPPING RATES & BUNKERS

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.

Reuters Dec. 13 2018

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.

FT Dec. 13, 2018

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.

FT Dec. 13, 2018

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.

Reuters Dec. 13, 2018

COMMODITIES

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

  • Asphalt: Rocky Mountain area selling ranges headed down in many locations last week, with demand diminishing
  • LNG: The Atlantic and Middle East continued to be very quiet with very few discussions for tonnage emerging. Tonnage availability in both basins continued to remain at low levels and with limited availability, potential discussions became difficult.
  • LPG: Apart from the newly commissioned LPG terminal with 31,000 tons of planned capacity, Sri Lanka also has 8,000 tons of import capacity at Kerawalapitiya and 3,000 tons at Hambantota, taking the country's total installed terminal capacity to 41,000 tons.

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)

EIA US weekly ending stocks DEc 13, 2018

POTEN EVENTS

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

WORLD EVENTS

Dec. 13 : EIA Natural Gas Report, 11:00am, ET.

Dec. 14: Baker Hughes Rig Count, 1:00pm, ET.

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