Expert predicts mixed price movements in bunker market next week
The Bunker Review is contributed by Marine Bunker Exchange
Brent crude oil steadied below $79 and WTI between $77-78 a barrel on Wednesday as data showed Saudi Arabia increased crude exports in September despite signs of an oversupplied market and producers appeared divided ahead of an OPEC meeting to discuss output.
All eyes are on OPEC’s response to a drop in oil prices of nearly one-third in recent months, with some smaller members calling for production cuts at the November 27 meeting in Vienna. – OPEC heavyweight Saudi Arabia has so far shown no indication that it will support a reduction in OPEC production. Diplomatic and market sources say Saudi officials said in recent private briefings that the kingdom could live for some time with current, or even lower price levels. Even OPEC veterans say they do not know how the cartel will respond to the collapse in oil prices this year.
Traders and brokers said the oil market appeared to be stabilizing after recent volatility, and many investors were staying out of the market until the outcome of next week’s OPEC meeting became clear.
Oil prices fell on Wednesday after data from the Energy Information Administration showed U.S. crude stockpiles rose 2.6 million barrels in the week ending Nov. 14 to 381.1 million including 718,000 barrels barrel build at the Cushing oil hub.
A bill to approve TransCanada Corp.’s $8 billion Keystone XL pipeline was rejected by the Senate after years of political fighting over jobs, climate change and energy security. The project, proposed in 2008, would have the capacity to carry 830 000 barrels a day of crude and connect Alberta’s oil sands to the U.S. Gulf Coast via Montana, South Dakota and Nebraska.
For the coming week we expect bunker prices show irregular trend.
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)