MABUX: Bunker Market this morning, Oct 2
The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
Yesterday Market close
WTI fell more than 3% on Thursday as rising coronavirus cases around the world dampened the demand outlook, while a rise last month in member output from the Organization of the Petroleum Exporting Countries also pressured prices.
Brent crude oil close almost unchanged down 2 cents.
U.S. consumer spending is starting to slow due to a shaky jobs market. If policymakers cannot agree on more support, the U.S. economy could lose more momentum.
Trump said on Twitter that he and his wife had been tested for coronavirus after Hope Hicks, a senior advisor who recently travelled with the president, tested positive.
If Trump also tested positive, that could cause a new wave of market volatility as investors brace for a hotly-contested presidential election in November.
“It depends on how serious this becomes, and whether or not Trump is actually infected,” said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management.
Today Market open
Oil prices extended losses to fall around 3,5% on Friday after U.S. President Donald Trump tested positive for the coronavirus, while a U.S. stimulus package eluded negotiators amid ongoing worries about demand.
Brent crude slipped on the news and was down $1.47, or 3.6%, at $39.57 a barrel at 0622 GMT. U.S. oil was down $1.37, or 3.7%, lower at $37.33.
U.S. oil is heading for a drop of more than 6% this week, while Brent is on track to fall more than 5%, in a second consecutive week of decline for both contracts.
Oil was already in negative territory after a bipartisan deal for more economic relief in response to the pandemic continued to elude House Speaker Nancy Pelosi and the White House, adding to fears about worsening demand without more support for the economy.
“Oil’s upside was always likely to be limited, as fears rise about the global consumption picture, and from rising OPEC+ production,” he added.
Crude supplies from the Organization of the Petroleum Exporting Countries (OPEC) in September rose by 160,000 barrels per day (bpd) from a month earlier, a Reuters survey showed.
The increase was mainly the result of more supplies from Libya and Iran, OPEC members that are exempt from an agreement to withhold production between OPEC and allies led by Russia - a group known as OPEC+.
Oil Future close 1st October, 2020
Brent crude: $ 40.93 (-0.02) /brl FM delivery Dec
Light crude (WTI): $ 38.72 (-1.50) /brl FM delivery Nov
Gasoil ARA; $ 317.00 (-12.50) /mton FM delivery Oct
NY Harbor Ulsd: $ 346.34 (-8.38) /mton FM delivery Nov
Oil Futures trading at GMT 06.44; Brent: -$1.17, WTI: -$1.13.
President Trump and the First Lady Melania Trump tested positive for COVID-19, which is likely to hamper the oil market.
Expect bunker prices related to Brent, Fuel Oil unchanged but MGO down 12 USD/MTON. Expect bunker prices related WTI, Fuel Oil down 9-11 USD/MTON, NY Harbor down 8 USD/MTON.
