MABUX: Bunker Market as of this morning, March 14
The Bunker Review was contributed by Marine Bunker Exchange
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs declined on March 13
380 HSFO - USD/MT 420.93 (-1.28)
180 HSFO - USD/MT 468.86 (-1.50)
MGO - USD/MT 640.71 (-1.08)
Meantime, world oil indexes increased on Mar. 13 as U.S. crude inventories unexpectedly fell and an official forecast of crude oil supply growth from the world’s top producer was revised lower
Brent for May settlement increased by $0.88 to $67.55 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April delivery rose by $1.39 to $58.26 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 9.29 to WTI. Gasoil for April delivery increased by $1.39.
Today indexes rise as the U.S. reportedly would start cutting more Iran’s crude exports from May
Washington is targeting to cut Iran's crude exports by about 20% to below 1 million barrels per day (bpd) from May. The cut would be achieved by requiring importing countries to reduce purchases to avoid U.S. sanctions, the source added. A complete halt of Iran’s oil in the short term is unlikely however, as the Trump administration remained concerned that it would trigger a global oil price spike.
U.S. crude oil inventories fell unexpectedly last week. The EIA data showed that crude oil inventories fell by 3.86 million barrels last week. That was compared to forecasts for a stockpile build of 2.66 million barrels, after a surge of 7.07 million barrels in the previous week. U.S. crude oil production also dipped, falling by 100,000 bpd to 12 million bpd.
At the same time the U.S. Energy Information Administration (EIA) reported on Mar.12 that U.S. crude oil production is expected to average about 12.30 million bpd in 2019, up from an average of around 11 million bpd in 2018. At the same time EIA cut its 2019 world oil demand growth forecast by 40,000 barrels per day to 1.45 million bpd (for 2020 - by 20,000 bpd to 1.46 million bpd).
U.S. plans to implement further Venezuela-related sanctions that would be very significant. U.S. sanctions against oil exports from Caracas and fellow OPEC member Iran have contributed to a tightening market, while a power outage in Venezuela and Saudi Arabia’s commitment to deeper production cuts added to expectations for diminishing supply. Moreover, Venezuela suffers from a six-day blackout, its worst on record, which has left exports from its main oil terminal at a standstill.
Saudi Energy Minister Khalid al-Falih said this week that its agreement with OPEC and allies led by Russia to cut output would likely last until at least June, while the kingdom also indicated Monday that it would cut exports in April.
Market awaits the publication of monthly oil market reports from both OPEC and the International Energy Agency on Thursday and Friday, respectively, as it seeks to gauge the outlook for global supply and demand.
Expect bunker prices to rise today: 3-5 USD up for IFO, 1-3USD up for MGO.