Wednesday, 30 September 2020 | 05:21
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MABUX: Bunker Market this morning August, 21.

Wednesday, 21 August 2019 | 12:00

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) rose on Aug. 20

380 HSFO – USD/MT 355.76 (+5.43)
180 HSFO – USD/MT 401.86 (+5.48)
MGO – USD/MT 636.31 (+2.91)

Meantime, world oil indexes demonstrated slight irregular changes on Aug. 20.

Brent for October settlement increased by $0.29 to $60.03 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for October delivery declined by $0.08 to $56.13 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 3.90 to WTI. Gasoil for September delivery increased by $2.50.

Today indexes rise, pushed up by larger-than-expected drawdown in U.S. crude inventories, but ongoing worries about a global economic recession capped gains.

U.S. crude oil stocks fell by 3.5 million barrels to 439.8 million in the week to Aug. 16, data from industry group the American Petroleum Institute (API) showed. It was expected a decrease of 1.9 million barrels. Inventory numbers from the government’s Energy Information Administration (EIA) are due today in the evening.

Oil prices were supported by some positive developments on the Sino-U.S. trade front yesterday.

U.S. Commerce Secretary Wilbur Ross confirmed overnight that Washington will extend for another 90 days a license that allows China’s Huawei Technologies Co. to temporarily continue doing business with U.S. companies. It is also a positive step ahead of next month’s U.S.-China trade talks. White House economic adviser Larry Kudlow said recent conversations between both sides had been “positive” and teleconferences would continue for a week to 10 days.

A rally in equity markets around the world on growing expectations that global economies will take action against slowing growth also supported crude prices. China’s new lending reference rate was set slightly lower on Aug.20 after the central bank announced interest rate reforms designed to reduce corporate borrowing costs, while Germany’s right-left coalition government said it would be prepared to ditch its balanced budget rule and take on new debt to counter a possible recession.

Still, prices were weighed down by a report from OPEC that stoked concerns about oil demand growth. The group cut its forecast for global oil demand growth in 2019 by 40,000 barrels per day (bpd) to 1.10 million bpd and indicated the market would be in slight surplus in 2020 Market was also watching for signs of tension in the Middle East after the United States called the release of an Iranian tanker at the center of a confrontation between Iran and Washington unfortunate, warning Greece and Mediterranean ports against helping the vessel. U.S. Secretary of State Mike Pompeo said on Aug.20 that the country would take every action it can to prevent an Iranian tanker sailing in the Mediterranean from delivering oil to Syria in contravention of U.S. sanctions.

Elsewhere, the news that Yemeni rebels attacked an oil facility in Saudi Arabia over the weekend remained in focus. While reports suggested that it would take at least a week to repair the damage, state-run Saudi Aramco said oil production was not affected. At the same time Saudi Arabia plans to keep its crude oil exports below 7 million bpd in August and September despite
strong demand from customers, to bring the market back to balance.

Expect bunker prices little change today: about plus/minus 1-3 USD.
Source: MABUX

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