2019 April 2 09:31
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) demonstrated upward changes on Apr. 01
380 HSFO - USD/MT 418.36 (+3.22)
180 HSFO - USD/MT 464.36 (+2.65)
MGO - USD/MT 633.57 (+4.36)
Meantime, world oil indexes increased on Apr. 01 amid strong Chinese economic data and signs of supply tightening
Brent for June settlement increased by $1.43 to $69.01 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for May delivery rose by $1.45 to $61.590 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 7.42 to WTI. Gasoil for April delivery increased by $1.50.
Today oil indexes continue to rise after a U.S. official said Washington is considering more sanctions on Iran and a key Venezuelan export terminal halted operations.
The U.S. government is considering additional sanctions against Iran that would target areas of its economy that have not been hit before. In addition, the U.S. may not extend waivers from sanctions on Iranian oil exports to a group of eight importers that expire next month.
Manufacturing activity in China expanded more than expected in March, easing concern over a slowdown in the world’s second-largest economy. China’s Caixin manufacturing purchasing managers’ index rose from 49.9 to 50.8, above the 50-mark that separates expansion from contraction and its strongest level since last August. The Chinese economic data was also accompanied by positive steps in current Sino-U.S. trade negotiations. Beijing said over the weekend that the country would maintain its suspension of additional tariffs on U.S. vehicles and auto parts after April 1, matching a U.S. decision to delay tariff hikes on Chinese imports as both sides attempt to reach a deal. Following meetings in Beijing, Chinese Vice Premier Liu He will be in Washington this week to continue high-level trade talks.
OPEC oil supply sank to a four-year low in March. Saudi Arabia led the cartel’s charge to cut production while U.S. sanctions and power outages shrank Venezuelan output. The positive news boosted oil indexes. OPEC production declined 280,000 barrels per day (bpd) to 30.40 million bpd last month, the lowest OPEC total since 2015. It is likely, that Saudi Arabia and its Gulf allies are pressing ahead with even larger supply cuts than called for by OPEC's latest deal, shrugging off pressure from U.S. President Donald Trump to increase supply.
Among exempt producers, Venezuelan supply fell by 150,000 bpd as power cuts hit exports, adding to the impact of U.S. sanctions on state oil company PDVSA and a long-term decline in production. Venezuela's Jose crude export terminal has halted operations due to a lack of electricity supply, after restarting on March, 29 following a prolonged blackout.
Expect bunker prices to demonstrate slight upward changes today: USD 3-5 up for IFO, USD 1-3 up for MGO.