Expert predicts mixed shifts in bunker prices next week
Brent oil fell below $107 a barrel on Thursday after week Chinese economic data, which lowered the outlook for fuel demand. Oil fell for a second day after figures showed China’s manufacturing activity hit an 11-month low in July and its job market weakened, raising concerns of slower demand growth. At the same time crude production in the US rose to 7.56 million barrels a day, the highest since 1990, according to the US Energy Information Administration (EIA), the market specialist MABUX said in a weekly bunker review.
US inventory figures showed that crude oil stockpiles declined last week for a fourth straight week, EIA data showed on Wednesday, while both gasoline and middle distillate stocks unexpectedly fell, although analysts had expected gains. US crude inventory dropped just below 30 million barrels over the four weeks to July 19, the biggest four week decline on records dating back to 1982.
China has been and still is the key driver of global demand, which has so far this year been lagging considerable behind the expansion of supply. Weaker demand from China would thus cause the oversupply of oil to increase even further. Financial investors clearly see this as an opportunity to grab profits, so the oil price is likely to remain under pressure for the time being.
The German Ifo index provides signs that Euro countries are starting to expand, although there is still a long way to go before we see sustained growth, said ThinaSaltvedt, an analyst at Nordea Bank in Oslo. The Ifo Business Climate Index in Germany advanced to 106.2 for July, up from 105.9 in June and 0.1 higher than forecast.
Tropical Storm Dorian moved across the Atlantic on a westward path that may take it to the Caribbean Sea, information from the US Hurricane Center. The system, with top sustained winds of 60 miles (95 km) per hour, was about 700 miles west of the Cape Verde Islands. The Storm is moving west-northwest at 17 mph. Weather projection shows that the storm will pass north of Puerto Rico on Monday or Tuesday.
Next week the market will likely see mixed price movements.
|
Product |
380 cSt HSFO |
380 cSt LSFO |
|
|
|
|
|
Rotterdam 2013-07-25 |
598 |
606 |
|
Rotterdam 2012-07-25 |
591 |
639 |
|
|
|
|
|
Gibraltar 2013-07-25 |
622 |
646 |
|
Gibraltar 2012-07-25 |
605 |
675 |
|
|
|
|
|
St Petersburg 2013-07-25 |
569 |
589 |
|
St Petersburg 2012-07-25 |
365 |
430 |
|
|
|
|
|
Panama Canal 2013-07-25 |
605 |
675 |
|
Panama Canal 2012-07-25 |
615 |
- |
|
|
|
|
|
Busan 2013-07-25 |
620 |
737 |
|
Busan 2012-07-25 |
605 |
- |
|
|
|
|
|
Fujairah 2013-07-25 |
585 |
730 |
|
Fujairah 2012-07-25 |
612 |
- |
All prices stated in USD / Mton
All time high Brent = $147.50 (July 11, 2008)
All time high Light crude (WTI) = $147.27 (July 11, 2008)
|
Product |
Close Jul. 24 |
|
Light Crude Oil (WTI) |
$105,39 |
|
Brent Crude Oil |
$107,19 |
