MABUX: Bunker Market this morning, March 27
The Bunker Review was contributed by Marine Bunker Exchange
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) demonstrated irregular changes on Mar. 26
380 HSFO - USD/MT 409.50 (-0.64)
180 HSFO - USD/MT 456.93 (-1.43)
MGO - USD/MT 632.57 (+2.57)
Meantime, world oil indexes demonstrated upward changes on Mar. 26 as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown.
Brent for May settlement increased by $0.76 to $67.97 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May delivery rose by $1.12 to $59.94 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 8.39 to WTI. Gasoil for April delivery increased by $2.00.
Today oil indexes continue to rise amid a second major blackout in Venezuela. Slowing global economics limits the growth.
Further price support came from another power cut in Venezuela, the second to hit the OPEC nation this month, raising concern about the country’s oil exports. Venezuela's second major blackout this month left the country and oil industry in darkness on March 25, worsening the crisis for embattled President Nicholas Maduro. Sulfur-laden Venezuelan oil is precious to U.S. refiners of diesel and heavy transport fuels, and they may not be able to get a barrel of it anymore due to Trump administration sanctions aimed at ensuring Maduro's government.
However, increasing concerns on the impact of a global economic slowdown and uncertainties surrounding events such as the Sino-U.S. trade developments and Brexit kept gains in check.
Worries about demand have limited oil’s rally as manufacturing data from Asia, Europe and the United States pointed to an economic slowdown. Investor concern over the global economy had intensified on March,22 after disappointing German and U.S. factory data led to an inversion of the U.S. Treasury yield curve, which some see as a leading indicator of recession.
According to American Petroleum Institute U.S. crude inventories rose 1.9 million barrels in the latest week, while it was forecasted a decrease of 1.2 million barrels. It is expected, that the U.S. Energy Information Administration to announce later in the day an official decline of a little more than 1 million barrels in crude stockpiles for the week ended March 22.
President Donald Trump’s national security team is deeply divided over whether to let a small group of countries keep buying Iranian oil after a U.S. deadline on sanctions waivers expires in May. The division -- primarily between John Bolton’s National Security Council and Michael Pompeo’s State Department -- has led to rising frustration and flared tempers. It’s exposing fault lines over how the president’s most senior advisers approach the Iran issue, discussing the internal deliberations.
Expect bunker prices to demonstrate upward changes today: 2-4 USD up for IFO, 1-3 USD up for MGO.
