MABUX: Bunker market this morning, Feb 03, 2021
The Bunker Review was contributed by Marine Bunker Exchange (MABUX) AB
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) rose on Feb.02:
380 HSFO: USD/MT – 367.65 (+3.82)
VLSFO: USD/MT – 465.85 (+5.10)
MGO: USD/MT – 519.55 (+3.38)
As of February 02, correlation of MBP Index (Market Bunker Prices) vs DBP Index (MABUX Digital Benchmark (Digital Bunker Prices) in four global largest hubs showed a situation when 380 HSFO and MGO LS fuel grades were underestimated in all four selected ports, including Houston (for the first time), where DBP index registered an underestimation of 380 HSFO by minus 4 dollars on Feb. 02 and a 100-percent correlation of MBP and DBP indices for MGO LS fuel. In general, 380 HSFO fuel was undercharged in all ports in a range from minus $ 2 (Fujairah) to minus $ 7 (Rotterdam and Singapore), and MGO LS fuel - from minus $ 6 (Rotterdam) to minus $ 23 (Singapore). However, VLSFO fuel remained overpriced at all selected ports ranging from plus $ 12 (Rotterdam) to plus $ 19 (Singapore).
World oil indexes also rose on Feb.02 after major crude producers showed they were reining in output roughly in line with their commitments.
Brent for April settlement rose by $1.11 to $57.46 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March delivery increased by $1.21 to $54.76 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.70 to WTI. Gasoil for February delivery gained $17.50 – $451.75.
Today morning oil indexes continue slight upward evolution.
OPEC crude production rose for a seventh month in January, but the increase was smaller than expected, a Reuters survey found. Also, voluntary cuts of 1 million bpd by OPEC’s de facto leader, Saudi Arabia, are set to be implemented from the beginning of February through March. Russian output increased in January but in line with the agreement on reducing production, while in Kazakhstan oil volume fell for the month. BP expects oil demand will recover in 2021 with global inventories expected to return to their five-year average by the middle of the year.
The American Petroleum Institute (API) reported on Feb.02 a draw in crude oil inventories of 4.261 million barrels for the week ending January 29, along with gasoline, distillate, and Cushing draws as well. Forecasts had predicted an inventory build of 446,000 barrels for the week.
We expect bunker prices may demonstrate firm upward evolution today: IFO may rise by USD5 - 7 USD, MGO – by USD8 - 15.
