Bunker prices to open next week flat, may close the week higher, expert says
The Bunker Review is contributed by Marine Bunker Exchange
Brent crude oil slipped further below $97 a barrel on Thursday as plentiful supply and a strong U.S. dollar outweighed concerns about potential loss of supply as a result of conflict in the Middle East. The market is looking for a rebound but we are not convinced the pressure on crude oil is over yet, unless market players agree on a supply cut. There is a vast oversupply of oil and it’s going to be difficult to have a strong rebound. – Last week Abdullah al-Badri, secretary-general of the Organization of the Petroleum Exporting Countries (OPEC), said he expected the group to lower its output target.
Fighting across the Middle East and North Africa continued to dominate headlines, raising the prospects of possible disruption to oil production in several OPEC countries. A war plane attacked the Libyan port Benghazi on Wednesday but overall national production has risen. Libya’s oil output has climbed to 900 000 barrels per day, with the major El Sharara oilfield at 200 000 bpd, an official with the National Oil Corporation said. Its production stood at 800 000 bpd earlier in the week.
West Texas Intermediate (WTI) traded near the highest closing level in almost a week as crude inventories shrank in the U.S., the world’s biggest consumer. Brent’s premium to WTI was close to the lowest in five months $4,15. Oil Futures were little change on Thursday in New York after rising 1.4 percent on Wednesday. Crude supplies dropped by 4.27 million barrels to 358 million last week, EIA data showed. The decline in crude stockpiles was driven by lower imports and higher refinery processing rates.
The Islamic State may be raising more than $2 million a day in revenue from oil sales in Iraq and Syria, paid either in cash or bartered goods. The group controls seven oil fields and two refineries in northern Iraq, and six out of 10 oil fields in eastern Syria.
Bunker prices are expected to stay where they are, but a smaller rebound could be imminent.
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)
