The Bunker Review is contributed by Marine Bunker Exchange
Irregular trend of bunker prices movement seems to be continued.
Oil prices have been under pressure during the week on worries about weaker demand from the U.S. and China, the world's two largest oil consumers. The Chinese government reported over the weekend that the country's services sector in February grew at its slowest pace in five months. The release came after last week data showed Chinese manufacturing activity shrank in February from the previous month to barely above contraction.
The U.S. fiscal crisis stoked fears over oil demand as well. Automatic spending cuts, known as the "sequester", were triggered on Mar.01 as lawmakers failed to agree on a resolution to prevent them, rattling an already fragile economic recovery. According to the International Monetary Fund, the U.S. spending cuts could cost the U.S. about 0.5 percent of its economic growth, a factor that would weigh on global oil demand. The impact is likely to be felt in the second quarter 2013.
The prospect of weaker oil demand comes at a time when U.S. crude supplies are at multiyear highs. Total oil inventories are up 9 percent from year-ago levels and domestic oil and liquids production has risen by around one-fifth due largely to a boom in shale drilling.
The strong U.S. dollar during this week also has been weighing on oil prices. Dollar-denominated crude futures become less attractive to buyers in other currencies when the U.S. currency appreciates in value. Uncertainty about the future of Italy's economic reforms has pushed up demand for the dollar, which is seen as a safe-haven currency in periods of market turmoil.
Meanwhile, worries about possible oil supply disruption have rendered some support to oil prices. The UK Brent pipeline (80,000 barrel per day) was shut on Mar.02 for the second time in seven weeks after a leak was found at the Cormorant Alpha platform in the North Sea. It is still unclear when the pipeline system would reopen. Total halted all its oil exports from the North Sea area due to the shutdown.
Oil traders are also watching developments in Venezuela, following the death of President Hugo Chavez on Mar.05. Venezuela - a member of the Organization of Petroleum Exporting Countries - is the fourth-largest exporter of oil to the U.S. behind Canada, Mexico and Saudi Arabia, and a post-Chavez transition of power might not be as smooth as previously expected. Uncertainty over the fate of Venezuela could lead to some short-term increases in the price of oil.
For the coming week expect marine bunker prices to continue irregular trend.
|
Product |
380 cSt HSFO |
380 cSt LSFO |
|
|
|
|
|
Rotterdam 2013-03-07 |
604 |
635 |
|
Rotterdam 2012-03-07 |
705 |
758 |
|
|
|
|
|
Gibraltar 2013-03-07 |
633 |
670 |
|
Gibraltar 2012-03-07 |
727 |
800 |
|
|
|
|
|
St Petersburg 2013-03-07 |
525 |
575 |
|
St Petersburg 2012-03-07 |
490 |
615 |
|
|
|
|
|
Panama Canal 2013-03-07 |
620 |
725 |
|
Panama Canal 2012-03-07 |
750 |
- |
|
|
|
|
|
Busan 2013-03-07 |
662 |
850 |
|
Busan 2012-03-07 |
765 |
- |
|
|
|
|
|
Fujairah 2013-03-07 |
638 |
775 |
|
Fujairah 2012-03-07 |
743 |
- |
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)
|
Product |
Close Mar.06 |
|
Light Crude Oil (WTI) |
$90.43 |
|
Brent Crude Oil |
$111.06 |