Welcome to Plus Petroleum https://plus-petro.com Fri, 10 Apr 2020 04:56:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 IMO 2020 Premium Evaporates, Price Paid for Bunkers in March 20% Lower than in 2019 https://plus-petro.com/imo-2020-premium-evaporates-price-paid-for-bunkers-in-march-20-lower-than-in-2019/ https://plus-petro.com/imo-2020-premium-evaporates-price-paid-for-bunkers-in-march-20-lower-than-in-2019/#respond Fri, 10 Apr 2020 04:56:50 +0000 http://ellaecreative.com/petrol/?p=5132 [vc_row][vc_column][vc_column_text]Source: https://shipandbunker.com/news/world/671243-imo-2020-premium-evaporates-price-paid-for-bunkers-in-march-20-lower-than-in-2019

The premium for IMO 2020 bunkers evaporated in March with the average price paid for bunkers in major ports 20% lower last month compared to March 2019, according to Ship & Bunker Data.

The introduction of a global 0.50% sulfur cap on January 1, 2020 means most vessels are now burning VLSFO fuel, rather than the IFO380 HSFO they were lifting last year. This means buyers, operators, and those with BAF agreements should compare VLSFO prices this year with IFO380 prices in 2019 to gauge the real-world year over year change in bunker costs.

the monthly average VLSFO price for March was $351.50/mt. This compares with the average IFO380 price for March 2019 of $425/mt.

Looking at Ship & Bunker’s Global Top 20 Ports index that tracks bunker prices across 20 of the world’s top bunkering markets, the monthly average VLSFO price for March was $351.50/mt. This compares with the average IFO380 price for March 2019 of $425/mt.

This is in sharp contrast to the picture in January when the average VLSFO price was $651/mt, compared to January 2019’s average IFO380 price of $392.50/mt.

Looking at weekly averages during the first quarter, for the first nine weeks of 2020 VLSFO has been higher than IFO380 during the equivalent period in 2019, and lower thereafter.

The rapid fall in the price of bunkers has predominantly been brought about by last month’s dramatic 50% decline in the price of crude.

But with crude prices jumping as much as 35% Thursday after US President Donald Trump hinted at huge production cuts, it remains to be seen how long the current low price environment will last.

IMO 2020 Premium Evaporates, Price Paid for Bunkers in March 20% Lower than in 2019

Image Credit: Ship & Bunker. Data Credit: Ship & Bunker.

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ABB to Develop Hydrogen Fuel Cell for Ships https://plus-petro.com/abb-to-develop-hydrogen-fuel-cell-for-ships/ https://plus-petro.com/abb-to-develop-hydrogen-fuel-cell-for-ships/#respond Fri, 10 Apr 2020 04:49:28 +0000 http://ellaecreative.com/petrol/?p=5128 [vc_row][vc_column][vc_column_text]Source: https://shipandbunker.com/news/world/392420-abb-to-develop-hydrogen-fuel-cell-for-ships

Technology company ABB has signed a memorandum of understanding with hydrogen technology specialist Hydrogène de France to develop fuel cell systems for ships, the company said Wednesday.

The two companies will collaborate closely on the assembly and production of megawatt-scale fuel cell power plants for ships, ABB said in an emailed statement.

“We are confident that fuel cells will play an important role in helping the marine industry meet CO2 reduction targets,” Juha Koskela, managing director for marine and ports at ABB, said in the statement.

“Signing the MOU with HDF brings us a step closer to making this technology available for powering ocean-going vessels.”

Hydrogen fuel cells are one of the marine energy systems being proposed as a means of meeting the International Maritime Organization‘s target of halving the shipping industry’s greenhouse gas emissions by 2050.

The technology is likely to be significantly more expensive than current conventional marine fuels, and will be reliant upon large quantities of renewable power generation capacity being available on land.

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No Weakening of Shipping GHG Targets Expected Despite Industry’s Economic Woes https://plus-petro.com/no-weakening-of-shipping-ghg-targets-expected-despite-industrys-economic-woes/ https://plus-petro.com/no-weakening-of-shipping-ghg-targets-expected-despite-industrys-economic-woes/#respond Fri, 10 Apr 2020 04:45:04 +0000 http://ellaecreative.com/petrol/?p=5125 [vc_row][vc_column][vc_column_text]Source: shipandbunker.com/news/world/152550-no-weakening-of-shipping-ghg-targets-expected-despite-industrys-economic-woes

Meetings at the IMO’s headquarters in London have been indefinitely postponed during the COVID-19 pandemic. Image Credit: Ship & Bunker

Despite the dramatic change in economic outlook brought about by plummeting oil prices and measures to counter the Covid-19 pandemic, any weakening of the International Maritime Organization‘s (IMO) 2030 and 2050 targets for decarbonisation is highly unlikely, according to one of the key officials involved in drawing up the initial strategy.

The IMO’s initial strategy envisages a drop of at least 40% from 2008’s levels in carbon emissions per transport work by 2030, and a reduction in total greenhouse gas (GHG) emissions from the shipping industry of at least 50% by 2050.

The shipping industry should not expect the strategy to be watered down in the run-up to its review at the IMO in 2023, according to Edmund Hughes, the UN body’s former head of air pollution and energy efficiency.

“I just can’t see that now,” he told Ship & Bunker in an interview last month.

“Prior to COVID-19 there seemed to be an acceleration, particularly with the likes of the European Union announcing their Green Deal.

“I really don’t foresee any weakening of those goals.”

The European Commission has already committed to including shipping in its emissions trading scheme, and is expected to announce more details later this year. 

2023 Review

While Hughes expects the GHG targets not to be weakened, he also advises against the impulse to toughen them in the run-up to the 2023 review.

“I think the levels of ambition in the strategy now are adequate,” he said.

I think now the focus should just be on implementation.

“I think now the focus should just be on implementation.

“The ‘at least 50%’ reduction compared to 2008 … if trade continues to grow and the global economy continues to grow, we estimated that it would be equivalent to a GHG emission reduction of over 80% per ship by 2050.

“To me that’s a challenging enough ambition, and it would require the global introduction of alternative fuels and technologies to do that.”

Last year a group of shipping industry bodies came together to suggest imposing a $2/mt levy on bunker fuel sales to build a $5 billion fund to spend on researching new decarbonisation technologies for the shipping industry.

The proposal has yet to be discussed at the IMO’s Marine Environment Protection Committee, but Hughes said it could send a message about shipping’s commitment to its GHG reduction strategy.

“It’s an important signal from the industry to say, we want to achieve this, but we can’t do it without money to invest in R&D,” he said.

“And the structure of shipping is such that it’s going to be very difficult for individual countries to come forward with significant funds to invest in technology for shipping.”

Sitting Out the Storm

But for now, Hughes suggested the disruption to shipping in the wake of the COVID-19 pandemic will kick thinking about the GHG agenda into the long grass for much of the industry.

It’s a question of companies sitting and saying, how resilient are we?

“Many companies, particularly now, will be looking at the short term, thinking we need to consolidate our position and make sure we’re just doing what we can,” he said.

“It’s a question of companies sitting and saying, how resilient are we?

“And if part of your strategy is to move towards alternative fuels and say, these are going to make us more resilient in future, then you would be willing to take those investment risks.

“But I’d suggest by far the majority of companies aren’t going to be doing that; they’ll essentially be sitting out this current storm and just keeping doing what they’ve been doing already.”

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Oil Slips Despite Historic Production Cut Deal, While Business Questions Draconian Virus Measures https://plus-petro.com/oil-slips-despite-historic-production-cut-deal-while-business-questions-draconian-virus-measures/ https://plus-petro.com/oil-slips-despite-historic-production-cut-deal-while-business-questions-draconian-virus-measures/#respond Fri, 10 Apr 2020 04:39:49 +0000 http://ellaecreative.com/petrol/?p=5122 [vc_row][vc_column][vc_column_text]Source: www.shipandbunker.com/news/am/980544-oil-slips-despite-historic-production-cut-deal-while-business-questions-draconian-virus-measures

Meanwhile, the G-20 prepares for extraordinary meeting: File Image/PixaBay

No sooner did traders cause oil prices to rise again early on Thursday on the expectation the world’s largest producers would agree to cut production than their expectations were fulfilled, with the Organization of the Petroleum Exporting Countries (OPEC) and its allies settling on an initial cutback of 10 million barrels per day (bpd).

However, the cuts were apparently not enough to assuage fears over how government-mandated coronavirus curbs have impacted demand, and as a result West Texas Intermediate fell $2.33 to settle at $22.76 per barrel, while Brent crude slipped 4.14 percent to settle at $31.48, after earlier hitting a high of $36.40.

OPEC+ will make the 10 million bpd cuts between May and June, and then enact 8 million bpd cuts from July to year end, followed by a reduction of 6 million bpd beginning in January 2021 and extending through April 2022.

Covid-19 is an unseen beast that seems to be impacting everything in its path

Mohammad Barkindo, secretary general, OPEC

Next up, energy ministers from the Group of 20 major economies will convene for their own extraordinary meeting on Friday to “foster global dialogue and cooperation to ensure stable energy markets and enable a stronger global economy,” according to the G-20 presidency.

All of this caused Mohammad Barkindo, secretary general of OPEC, to remark, “Covid-19 is an unseen beast that seems to be impacting everything in its path: for the oil market it has completely up-ended market supply and demand fundamentals since we last met on 6 March.”

Meanwhile, as mainstream media continues to focus on its virus death toll reporting instead of highlighting the emerging decline of infection and hospital admittance rates, a growing number of professionals believe the computer models that dictated the global economic shutdown were wrong – an argument supported by some of the most prominent modellers recently downgrading their numbers (in the case of the UK, from an initial calculation of 500,000 virus deaths down to 20,000).

Indeed, William Bennett, former secretary of education and director of the U.S. National Office of Drug Control Policyreminded RealClear Politics readers earlier this week that “Our officials and media have warned us of 2 million deaths in the United States, then 200,000 deaths, then 100,000 to 240,000 –  this needs to stop: there have been a total of 68,000 coronavirus deaths worldwide.”

However, countries such as Canada – where the energy industry has all but completely collapsed – are still relying on modelling to keep draconian ‘control’ measures in place: prime minister Justin Trudeau on Thursday warned Canadians that normality wouldn’t return “full-on” until a vaccine is developed [which could take years, opposed to rapidly-developing treatments that could render the virus manageable] and that vigilance would have to be practised “for at least a year.”

It’s unclear whether these countries will take the advice of new Harvard research suggesting that multiple “intermittent” periods of physical distancing might be more effective for saving lives than  “strict” distancing measures.

Finally, the drug widely and successfully used by doctors in Europe to treat the virus – hydroxychloroquine – but that has been denied widespread use in other countries and dismissed by media pundits because it has not undergone clinical trials – is finally undergoing the first official clinical trial, the U.S. government’s National Institutes of Health announced on Thursday.

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Africa: South Africa’s Commercial Ports Remain Open But Traffic Down Significantly https://plus-petro.com/africa-south-africas-commercial-ports-remain-open-but-traffic-down-significantly/ https://plus-petro.com/africa-south-africas-commercial-ports-remain-open-but-traffic-down-significantly/#respond Fri, 10 Apr 2020 04:33:49 +0000 http://ellaecreative.com/petrol/?p=5118 [vc_row][vc_column][vc_column_text]Source: https://www.bunkerspot.com/africa/50270-africa-south-africa-s-commercial-ports-remain-open-but-traffic-down-significantly

Although all of South Africa’s main commercial ports remain open for business and bunkering operations continue, the coronavirus outbreak has led to a significant drop in cargo volumes and restrictions on crew changes.

Chrystel Bassett-Simmonds, a member of the IBIA executive committee and Managing Director of Lavin Energy Ltd, has sent Bunkerspot this report:

‘The 2020 start of the new Fuel Oil Era seems like a lifetime ago now and the concerns and dramas over compliancy and qualities amongst other issues pale in significance to what we are witnessing on an unprecedented global scale with regards to the Covid-19 Pandemic which started somewhere so far away from our daily lives and moved most of us from observer to real life participant in many countries  with almost HALF of the worlds’ population currently in some form of lockdown.

‘South Africa has moved remarkably swiftly and decisively to avoid a humanitarian crisis, but any lockdown was going to have a negative consequence on the economy, albeit so would the humanitarian crisis . Adding to the pain of the current dynamic was the geopolitical tensions that have affected the oil prices and thus refinery margins in this past month with the world oil prices crashing when stock markets were already struggling under the intense pressure over the coronavirus outbreak.

‘And with bad news coming in three’s, Moody’s struck on March 27th, downgrading South Africa to Junk status bringing an already buckling rand to its knees, and its worst ever level in history.

‘South Africa has been on a legislated Lockdown since 26th March for a 3 week period. None of the 8 Commercial Ports are closed and commercial Cargoes ,both essential and non-essential cargoes are allowed to continue operations.

‘With Global issues at the forefront of the Industry, it is still too early to assess the long term position of the shipping industry. With the Corona Virus obliterating the global oil demand for 2020, and dry bulk shipping negatively impacted as the Chinese manufacturing sector still recovers from its lockdown, there is without a doubt a knock on effect in terms of Bunker supplies with pricing being super competitive as suppliers cut their margins to move stocks and maintain volumes.

‘In order to understand the global impact on South African Bunker demand, we looked at the historical data of the Port calls for Cape Town, Richards Bay, Durban and Algoa Bay for Q1 2020.  Cape Town has experienced a significant drop in Port traffic  for March of 28% compared with January, with volume down on Bulk Carriers, Container vessels and interestingly , 28% drop in Fishing Vessels. The Astron Refinery started their shutdown mid February with the expectation to start up mid April. This has now been delayed by a month but Astron are still able to continue to supply Bunkers in the Port of VLSFO and GO.

‘Durban sees a drop in Bulk Carriers, Container and Cargo vessels calling port – in the region of 15-20%; and in Richards Bay Bulk Carriers are noticeably much lower in March than the start of the Quarter.

‘ENREF have confirmed that they will bring forward their planned maintenance and shutdown imminently with NATREF currently considering their position. The supply for Durban and Richards Bay Bunkers should not be affected with current refinery stock levels across the board.

‘Algoa Bay, with the offshore bunker Operations have maintained consistency of supply and volume of calling vessels throughout Q1 2020.

‘Across the Ports, Transnet Port Authority took the Executive Decision to prohibit all Crew changes in all 8 commercial Ports.'[/vc_column_text][vc_empty_space height=”2em”][/vc_column][/vc_row]

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