MABUX: Bunker market this morning, Mar 5, 2021
The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) rose slightly on March 4:
380 HSFO: USD/MT – 410.88 (+2.90)
VLSFO: USD/MT – 515.51 (+4.57)
MGO: USD/MT – 581.87 (+2.56)
As of March 04, a correlation of MBP Index (Market Bunker Prices) vs DBP Index (MABUX Digital Benchmark (Digital Bunker Prices)) in four largest global hubs showed that 380 HSFO fuel was undervalued in three selected ports ranging from minus $ 8 in Fujairah to minus $ 25 in Rotterdam, while the value of underestimation increased by an average of $ 4. The exception is Houston, where 380 HSFO was overcharged by $ 10. Meantime, three selected ports, according to DBP Index, showed unexpectedly an undercharge of VLSFO fuel grade: from minus $ 3 in Fujairah to minus $ 5 in Rotterdam and minus $ 7 in Singapore. Only in Houston there was registered an overcharge of VLSFO: plus $ 27. MGO LS, according to DBP Index, remains underpriced in three ports ranging from minus $ 17 (Fujairah) to minus $ 37 (Rotterdam). The exception is still Houston, where MGO LS has been overcharged by $ 27. Houston remains the only port where DBP Index records an overcharge of all bunker fuel grades.
World oil indexes rose on March04 after OPEC and its allies agreed to keep production unchanged into April.
Brent for May settlement jumped by $2.67 to $66.74 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April delivery increased by $2.55 to $63.83 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.91 to WTI. Gasoil for March delivery gained $5.25 – $535.25.
Today morning oil indexes continue firm upward evolution.
Oil prices jumped 4% on March 4 as the OPEC+ producers’ alliance bucked expectations for a hike in output starting in April. The group’s leader Saudi Arabia said it would extend its voluntary oil output cut of 1 million barrels per day (bpd), and decide in coming months when to gradually phase it out. Russia was allowed to raise output by 130,000 bpd in April and Kazakhstan by another 20,000 bpd.
Another factor supporting fuel indexes: Yemen’s Houthi forces said on March 4 they had fired a missile at a Saudi Aramco facility in Saudi Arabia’s Red Sea city of Jeddah. There was no immediate confirmation from Saudi authorities.
In the United States, despite a record surge of more than 21 million barrels in crude oil stockpiles last week, gasoline stocks fell by the most in 30 years as refining plunged to an all-time low due to the Texas freeze that knocked out power for millions. The United States turned into a net petroleum importer last week at 2.2 million bpd.
We expect global bunker prices may rise today: 380 HSFO – in a range of plus 11-16 USD, VLSFO – plus 15-20 USD, MGO – plus 13-18 USD.
Source: www.mabux.com
