Aug 30
John Kaltenstein
Longer-term outlook to see economies shake off 'temporary funk'.
The drumbeat of change is sounding and it is important that the shipping industry heeds its call.
Thank you Watchkeeper for highlighting the benefits of emissions trading.
But debate rages over whether economic recovery is meaningful.
Consumer hedgers may wish to lock in protection against further upside moves.
Implied volatility has been slow to respond to the recent move lower.
Government shows 'blurry attitude' on whether they will issue more licenses.
Speculative inflows may push the energies higher in the coming weeks.
It is my pleasure to announce that the fourth edition of ISO 8217 - Specifications of marine fuels- and ISO 8216-1 - Classification of marine fuels- will be published on the 15th of June 2010.
Empirical conclusions are an accepted method of research in every field of science.
Upward momentum did not last long this week.
To suggest that guidelines could be preventing the development of new technologies is simply incorrect.
Condemning fuel outright due to the presence, rather than effect, of contaminants could result in costly and unnecessary disputes.
Watch for further weakening due to increased inventories.
The revision of the ISO 8217 fuel specification is not without its critics, but in at least one sense the work is to be encouraged.
The marine industry spends $6 billion a year in the prevention or treatment of biofouling.
Crude and products market looks to be ahead of itself.
Demand predicted to jump 270% by 2014, compared to 2009 levels.
A careful reading of the final draft of ISO 8217:2010 gives the clear impression that para 5 will no longer help a fuel buyer.
Bunker fuel consumers may wish to take advantage of relatively weak fuel oil cracks.
Consumer hedges can sell into the still steep but skew in crude to own upside calls for zero cost.
Stalled investment cash flows and geopolitical issues should mitigate demand growth and pockets of shortages globally.
Market capitalization is exceeding $120 billion.
Why climate change issues are problematic for the Chinese.
Japanese and Singaporean companies involved.
Questions remain as to whether crude oil has found a new trading band.
Hedgers who heeded previous recommendation for Singapore 180 cSt fuel oil would be sitting on 'significant gains'.
Call for ISO 8217 Working Group to take suppliers' concerns into account.
Rally may be capped by substantial product supply.
Senior official warns that 'now the most acute problem in China is the increased importation of crude oil'.
India needs to learn from China's success in dealing with Africa.
Owners and operators run the risk of overlooking below the line or hidden costs.
The collapse of shipping companies and how banks will behave.
Editor-in-Chief of the Energy Tribune looks ahead.
Houston University Professor discusses feasibility of carbon capture.
Hedgers looking to protect against bunker prices rising in Q1 2010 can take advantage of the recent drop in prices.
Valles technical manager looks at COP15 targets as set by the International Maritime Organization (IMO).
Buffalo Marine looks at how cap and trade has the potential to cause vast disparaties.
Interferry CEO highlights concerns over limiting sulphur content in fuel.
Ron Wells considers what Taleb's musings may mean for the Credit Risk Management profession.
But renewed optimism tempered by an overhang and technical factors.
Canadian shipping industry supports global measures to control CO2 emissions.
The principles to judge the effectiveness of the ultimate solution to address pollution from ships.
Fuel transfer mishap involving the Dubai Star tanker.
Big changes are coming and there is no 'norm' to return to.
Weak US dollar continues to be powerful factor influencing crude oil prices worldwide.
Zero premium still possible ahead of October.
Simple option structures to protect against a December surge in prices.
There were a number of lengthy debates within the Working Group.
The issue appears to be too much of a run-up too fast.
Sellers' margins have gone up as credit risk has increased.
Reducing the level of crisis you will have to manage in the coming months.
While it's encouraging that the EU is going to start to address aviation, it begs the question, 'Is shipping next'?
The $70 pivot in WTI crude proving too much of a magnet for the bears.
Bunker fuel prices remain firm despite recent weakness in major Western benchmarks.
Confusion and 'wrong practice' surrounding the taking of official MARPOL samples.
Hedging strategies which utilise only swaps work best when a market simply moves in one direction.
It would benefit bunker consumers to hedge a portion of their fuel needs.
July and August typically exhibit a moribund trading pattern.
Equipment durability and reliability are the cornerstones of a successful shipping operation.
Asian fuel oil prices will continue to ape those of the broader energy complex.
Counter-party risk has, in many ways, actually surpassed price volatility as a matter of deepest concern to the market.
Danger remains of a 'slow grind lower' to the $50 range for oil.
Recent comments made in Lloyd's List once again cast considerable doubt over the economics of switching exclusively to low sulphur bunker fuels.
Singapore fuel oil continues its assault on $400.
Many drilling rig owners are not meeting MARPOL Annex VI fuel legislation requirements because they do not think it applies to them.
An inevitable push towards $400 bunker fuel.
From January 1, 2010 all vessels will have to consume fuel or apply measures to ensure that exhaust emissions are equivalent to the use of fuel containing no more than 0.1% Sulphur.
Not much resistance for prices below $70 per barrel.
Pressure remains to the upside as crude heads for $60.
Optimism that we have 'hit bottom' and the resulting financial flows into the commodity sector that continue to buoy the market
Bio-diesel requires particular understanding of its characteristics and requirements for storage, handling, treatment, combustion and the resulting impact on emissions.
Equity sentiment continues to soften, expect crude to push lower.
Implied volatility continues to decrease across the product sector.
A near-term push lower in crude prices is looking all the more plausible.
As for so many industries, one of the main victims of the current economic climate has been cash flow and, as a result, many vessels are bunkering smaller volumes more frequently.
US/Canada proposal is biggest expansion yet of tighter emissions rules.
Option strategies can be used to hedge against any downside risk.
Friday’s drop in prices has exacerbated the market contango structure.
The testing of bunker samples is therefore becoming increasingly important, as is monitoring wear.
Commodity and equity markets in the West rose sharply yesterday after the US Treasury’s bad debt plan received a positive reception.
Producer hedgers have stepped back into the market.
A flexible, objective driven approach to meeting a common objective allows all parties to adopt the most appropriate course of action.
Hedgers should now be on high-alert for futures prices to trend higher.
Traders ended last week focusing solely on OPEC’s Sunday meeting in Vienna.
Energy markets showed strength in late-day trading on Monday, recouping much of the losses from early Asian trading.
Consumers with actual physical risk may opt for this strategy to reduce daily mark-to-market volatility.
Consumers may hesitate to enter the swaps market.
Fuel oil recently plumbing lows not seen since mid-February.
Downward pressure returned to commodity markets yesterday with oil prices back below $40 per barrel.
Energy markets pushed higher last week on an expected higher demand for US gasoline.
Energy markets pushed higher yet again yesterday on the back of surprising US inventory numbers.
Focus yesterday in the energy markets turned once again to worries over demand destruction resulting from a continually faltering global economy.
What is truth? This is certainly a phrase that should come to mind to any person dealing
with marine bunker fuels and its associated quality specification.