Bunker Review W.11, 2013
The Bunker Review is contributed by Marine Bunker Exchange
Fuel indexes go sideways on the concerns about global oil demand.
During the week fuel prices have been under pressure by a larger-than-expected increase in U.S. crude inventories, updated demand forecast from the International Energy Agency and a stronger dollar.
Stockpiles of crude in the United States have risen for an eighth straight week and are at the highest level ever for this time of year. As per the U.S. Energy Information Administration (EIA) report, oil stocks rose 2.62 million barrels last week. At the same time a sharp drop in crude oil stocks at Cushing, Oklahoma, delivery point for the U.S. light sweet crude contract, helped narrow the spread between Brent and U.S. crude futures. Elevated stockpiles, production in the U.S. and slack demand there applied pressure to oil prices.
A gloomier outlook on global oil demand also helped weigh on prices. China’s net crude imports fell to the lowest level in five months. Chinese data showing inflation at a 10-month high in February, weaker factory output and consumer spending stoked worries that the economy may need policy tightening before industrial output and retail sales regain momentum.
EIA decreased its 2013 world oil demand forecast slightly in its monthly report and said U.S. crude oil production gains would be enough to protect against most shocks from potential supply interruptions. OPEC in its monthly report (released almost at the same time) pointed out that world oil demand growth could fall short of 2013 forecasts due to economic weakness and that U.S. supply would hit its highest in three decades. OPEC also warned that risks to the U.S. and euro zone's economic growth could dampen the demand increase.
Prices are also under pressure from a stronger dollar which grew up against other major currencies after a remarkable growth in U.S. employment, and weighs on dollar-denominated commodities such as oil. U.S. employers added a greater-than-expected 236,000 workers to their payrolls in February and the jobless rate fell to a four-year low.
Meanwhile oil indexes have received some support from renewed geopolitical worries in the Middle East. Syrian rebels broke through government lines to ease a siege of their positions in the strategic central city of Homs. In spite of Syria isn't a key to the oil market, investors have worried the unrest may spread to other major oil exporters. Iran for its part saw signals that the other side - China, Germany, France, Russia, the U.K. and the U.S. - is acting in good faith in talks about its uranium enrichment program last month. Both sides are scheduled to meet March 18 in Istanbul and on April 5-6 in Almaty. As per IEA, Iran’s crude output in January was the lowest in three decades due to economic sanctions.
For the coming week expect marine bunker prices to go sideways.
|
Product |
380 cSt HSFO |
380 cSt LSFO |
|
|
|
|
|
Rotterdam 2013-03-14 |
595 |
617 |
|
Rotterdam 2012-03-14 |
717 |
765 |
|
|
|
|
|
Gibraltar 2013-03-14 |
625 |
660 |
|
Gibraltar 2012-03-14 |
739 |
809 |
|
|
|
|
|
St Petersburg 2013-03-14 |
525 |
570 |
|
St Petersburg 2012-03-14 |
490 |
640 |
|
|
|
|
|
Panama Canal 2013-03-14 |
624 |
719 |
|
Panama Canal 2012-03-14 |
740 |
- |
|
|
|
|
|
Busan 2013-03-14 |
645 |
810 |
|
Busan 2012-03-14 |
761 |
- |
|
|
|
|
|
Fujairah 2013-03-14 |
629 |
775 |
|
Fujairah 2012-03-14 |
739 |
- |
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.13 |
|
Light Crude Oil (WTI) |
$92.52 |
|
Brent Crude Oil |
$108.52 |