Bunker prices likely to show mixed trend next week, MABUX says
The Bunker Review is contributed to IAA PortNews by Marine Bunker Exchange
US crude rose more than $1 on Wednesday, since the oil inventory rose more than expected last week. The buildup was overshadowed by a sharp spike in gasoline demand, according to US Energy Information Administration data. The data boosted US gasoline and crude oil prices above key technical levels, and pushed the closely watched and traded price spread with Brent, the European benchmark, to the narrowest point in nearly 7 months, now around $4, the smallest gap since September 20.
Investors continued to worry about the crises in Ukraine, which has severely strained relations between Moscow and Washington. The geopolitical tension continues to hang over the Brent market. Brent crude settled 31 cents higher at $107.98 a barrel. Brent prices were not affected by the potential for a rebound in Libyan oil exports as the country’s oil protection force said it had not regained full control of the Zueitina port. The government had announced a deal with rebels to end the blockade of eastern oil terminals earlier this week. The ports affected are Zueitina, Hariga and the two largest ports Es Sider and Ras Lanuf. Libya holds Africa’s largest oil reserves. Output has declined by more than 1 million barrels a day in the past year, making it the smallest producer in the Organization of Petroleum Exporting Countries (OPEC).
Brent also weakened after exports and imports unexpectedly declined last month in China, the world’s second biggest crude consumer. The country’s overseas shipments shrank 6.6 percent in March from a year earlier. Imports were down by 11.3 percent, the General Administration of Customs declared Thursday. These numbers confirm the weak manufacturing in China and a slowing growth in the Chinese economy. Investors are monitoring prospects for additional stimulus as the government seeks to sustain growth while restructuring the economy.
Oil prices are expected to continue irregular trend next week.
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)
