Vienna – center of the oily world –

What’s hot today ? OIL !! + 8% today

For sure, Vienna was the place where you shall put your ears in case you were wondering when to book your next Bunker stem. Opec’s members just announced they found a deal to cut output by 1.2Million barrels / day.  What to do then?

  • Rush to book your bunker stem before oil prices going banana !
  • or wait for the market reaction and non opec’s members declaring they’ll raise their daily production by 1.2Million Barrels/day?

USA might decide as a reaction to increase (bring back to activity) the shale gaz extraction.

Talking about USA, it appears that President Donald Trump has decided who’s going to be his Head Department of Transportation (DOT).

  • Shipping people might be happy to realize, Elaine Chao, the nominee, is well connected with shipping as her father is the founder of Foremost Maritime Corporation, with headoffice based in New York.
  • Some others (such like patriots willing to think AMERICA first), will be probably bit disappointed when they realize, according to equasis, out of the 15 dry bulkers registered 4 are registered under the Liberia flag and 11 under the Hong-Kong, China flag, none being under USA flag! But this is probably just a small point.
  • some others may probably do not even care about who’s the next Head of Department of Transportation.

On the chartering side, on the handies, the world seems to be divided in two main areas. East being fairly « pale » when Atlantic is still a Red hot (chilli peppers). Yes, the bill can be bit spicy for charterers stuck with spot cargoes in the Atlantic side… and spicy also for charterers having fronthaul destinations. USG is by far leading the chartering world today, The 60/65’000mt usg to china stem is reported today being worth US$ 36pmt when back early February similar trade was worth US $ 20. Looking at BHSI, HS3 +169 today heading above the US $10’000 daily mark. HS4 taking the direction to US $12’500/day as +189points today.

Few info related to chartering activity heard/seen on the market today (done here? sorry we don’t report what we do).

  • Glencore 30.000 mts 5% Wheat montreal – algeria 6000x – 2500x early dec seems to have missed the opportunity on friday to book this one in the US$26/27upmt range and are now seeing US$ 32pmt which according to our TCE is giving something along the US$18’000 dely Les Escoumins
  • Cont to med modern 35’000dwat reported being covered in the US $ 12’5000/13’000 dop range to go to Med
  • 25,000/10 corn Niko or Odessa to 1-2sp UK/IRELAND 8000/ 5000 SSHEX BENDS 8/14 dec said fixed & failed at US $ 17.5/mt but no details on the details (loadPort? 1 or 2 dischport) reported

And finally, Vienna will also the be the place where to put your ears end of the year if you’re a fan of classic music. (if not, still surely worth it to attend)

Regards

Jerome

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