Tuesday, 07 July 2020 | 03:57
SPONSORS
View by:

MABUX: Bunker market this morning, May, 28

Thursday, 28 May 2020 | 11:00

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs demonstrated slight irregular changes on May, 27:

380 HSFO – USD/MT – 260.42 (-1.53)
VLSFO – USD/MT – 300.00 (0.00)
MGO – USD/MT – 372.44 (+2.13)

Meantime, world oil indexes demonstrated downward changes on May, 27 as growing tensions between the U.S. and China raised concerns over energy demand.

Brent for July settlement decreased by $1.43 to $34.74 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for July fell by $1.54 to $32.81 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $1.93 to WTI. Gasoil for June delivery lost $10.25.

Today morning oil indexes continue to decrease after U.S. crude, gasoline and heating oil inventories all rose more than expected, dousing hopes of a smooth recovery in demand from coronavirus lockdowns.

Oil prices also came under pressure after a Supreme Court judge in Canada ruled against Meng Wanzhou, the chief financial officer of China’s tech giant Huawei who is fighting extradition to the United States for alleged violation of U.S. sanctions against Iran. Meng’s extradition could worsen already strained ties between Beijing and Washington.

At the same time, the U.S. is considering a range of sanctions to punish China for its crackdown on Hong Kong, including controls on transactions and freezing assets of Chinese officials and businesses. Additionally, the U.S. certified on May,27 that Hong Kong is no longer politically autonomous from China. The deteriorating relationship between the world’s two largest economies could complicate the market’s comeback from a historic demand crash.

The American Petroleum Institute reported that U.S. crude stockpiles rose 8.73 million barrels last week. Gasoline supplies also gained 1.12 million barrels, according to the report. If confirmed by government data today, the crude build would reverse two weeks of inventory declines – an indication that record supply cuts are not draining a massive supply glut fast enough. While oil has rallied about 70% this month, the market’s recovery from an historic crash remains fragile, with higher prices likely prompting producers to turn the taps back on even as the pandemic continues to quash energy demand. The API report also showed supplies at the key storage hub of Cushing, Oklahoma, fell by 3.37 million barrels, which would be the third consecutive weekly decline.

OPEC+’s deal to cut global output by almost 10 million barrels a day starting in May has helped to lift prices from April lows. Russian President Vladimir Putin and Saudi Arabia’s Mohammed bin Salman on May, 27 reiterated their cooperation on the agreement ahead of a June 9-10 meeting. At the same time there is some skepticism about the tightness of Russia’s relationship with Saudi Arabia. As OPEC prepares for its June meeting, due to take place in less than two weeks, some investors said that Russia was sending mixed signals even after the country announced that it had almost reached its cut target earlier in the week.

We expect bunker prices may decline today: 5-8 USD down for IFO, 7-10 USD down for MGO.
Source: MABUX

Comments
    There are no comments available.
    Name:  
    Email:  
    Comment:  
     
    In order to send the form you have to type the displayed code.

     
SPONSORS

NEWSLETTER