MABUX: Bunker fuel prices to remain firm next week
The Bunker Review is contributed to IAA PortNews by Marine Bunker Exchange
Brent crude slipped towards $106 a barrel on Thursday and was set to post its biggest monthly loss in more than a year as higher OPEC output and disappointing demand in the United States outweighed tensions in the Middle East and Africa. OPEC pumped more oil in July than in June despite concerns that unrest in Africa and the Middle East could hurt production. Oil prices have eased after hitting multi-month highs in June because of geopolitical tension in parts of the Middle East, Africa and Europe. Over the course of the last weeks, the market had been prepared to unwind the risk premium that had built into markets for potential supply disruption in Iraq and Russia. – Investors are watching how sanctions on Russia over Ukraine will affect its oil exports. Some Russian companies are prevented from accessing the capital market which could hurt the oil export from Russia.
Brent for September settlement fell as much as $1.01, or 1 percent, to $105.50 a barrel on the London-based ICE Futures Europe exchange. The European benchmark Brent crude oil was at a premium of $6.66 to WTI.
West Texas Intermediate dropped for a fourth day, slipping below $100 a barrel, as the dollar headed for its biggest monthly gain against the euro since last February, curbing the appeal of the commodity. Futures fell as much as 1.2 percent in New York to the lowest since July 15. A stronger U.S. currency often lowers the appeal of using dollar-priced commodities such as crude for protecting against inflation. WTI also fell after data yesterday showed U.S. gasoline supplies rose to the highest level in four months. The U.S. is considering further punitive measures on Russian business to deter President Vladimir Putin’s support for separatists in east Ukraine.
WTI for September delivery slid as much as $1.18 to $99.09 a barrel in electronic trading on the New York Mercantile Exchange and was at $99.54 on Thursday at 12:14 p.m. London time. The volume of all futures traded was about 8.7 percent above the 100-day average. Prices are down 5.5 percent in July, the most in nine months.
For the coming week we expect oil prices to stabilize after last week’s decline.
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)