MABUX: Bunker Market this morning April, 09
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) demonstrated irregular changes Apr. 08
380 HSFO - USD/MT 422.21 (-0.86)
180 HSFO - USD/MT 466.86 (-1.28)
MGO - USD/MT 642.79 (+3.29)
Meantime, world oil indexes rose on Apr. 08 supported by concerns on disruptions to supplies out of Libya.
Brent for June settlement increased by $0.76 to $71.10 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May delivery rose by $1.32 to $64.40 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 6.70 to WTI. Gasoil for April delivery increased by $7.75.
Today oil indexes continue to rise.
Geopolitical tensions in the Middle East and Venezuela have provided added upward impetus to oil as output curbs by the OPEC and its allies keep supplies in check. The prospect of some sort of resolution to the U.S.-China trade war and slivers of optimism over the global economy have also buoyed the demand outlook in recent weeks.
About 40% of North African country's production of about 1 million barrels per day has fallen under the control of Libyan National Army chief Khalifa Haftar, who’s leading a rebellion to unseat the UN-recognized administration in Tripoli. Libyan oil stockpiles likely fell by 830,000 barrels in the week ended April 1. If Libyan crude exports were disrupted, it is likely that Saudi Arabia to increase oil production again, as it did in the autumn.
Khalifa Haftar, a military strongman who controls eastern Libya, reportedly attempted to enter the capital Tripoli. His army continued its push on Apr. 07 and conducted airstrikes on a road leading to the capital. At least 35 people have been killed in clashes since last week.
Oil indexes also received some support as better-than-expected economic data from China and U.S. eased concerns of a global recession.
Saudi Arabia’s Energy Minister said on Apr. 08 that markets were moving “in the right direction” and were on their way toward rebalancing. The Saudi energy minister on Apr.08 said it was premature to say whether a consensus existed among OPEC and its allies to extend oil supply cuts but a meeting next month would be key.
A joint OPEC and non-OPEC ministerial committee known as the JMMC is due to meet in May. Saudi Arabia and Russia are members of the panel, which includes other major oil producers that took part in a global supply-cutting agreement last year, such as Iraq, the United Arab Emirates, Kuwait, Nigeria and Kazakhstan.
U.S. policies targeting Iran and Venezuela have introduced a new level of uncertainty for OPEC as the producer group struggles to predict global supply and demand. Washington is also advancing a bill, known as NOPEC, that could expose OPEC members to U.S. antitrust lawsuits. The NOPEC move prompted Saudi Arabia to threaten to sell its oil in currencies other than the dollar if Washington passes the bill.
Expect bunker prices to continue slight upward changes today: 3-5 USD up for IFO, 5-7 USD up for MGO.