The Bunker Review is contributed by Marine Bunker Exchange
The irregular trend is expected to be unchanged on the uncertainty of global oil demand.
An improving U.S. economy and increased pipeline flows from the Midwest have supported the U.S. benchmark oil contract this week. U.S. crude inventories as well as crude oil stocks at the Cushing storage hub rose again. Higher flows of crude oil to the key Gulf Coast refining region are cutting reliance on crude-oil imports, and making Brent and other similar grades of crude less valuable. However there is a possibility that crude oil stocks should begin to drop soon as refiners exit a heavy period of seasonal maintenance work which has limited crude-oil needs.
Meanwhile, Brent's price has been pressured by increased supplies from the North Sea and concerns about Europe's economy. More cargoes of North Sea Forties crude are likely to have their loading dates brought forward due to strong output, boosting supply of the oil that sets the global Brent benchmark
The relief at the fact that Cyprus will not suffer an uncontrolled bankruptcy and have to leave the euro zone gave new stimulus to the investors to increase their long positions in crude oil in the beginning of the week. Euro-area finance ministers approved the agreement between Cyprus and so called “Trojka”: the European Union, European Central Bank and International Monetary Fund. The deal opens the way for 10 billion euros ($13 billion) of emergency loans and makes Cyprus the fifth country to get a rescue since the euro debt crisis started in Greece in 2009. However, fresh concerns that the Cyprus bailout could set a new precedent in restructuring the euro zone banking sector, again adding worries about the European economy and its demand for oil
Geopolitics continued to underpin the oil markets as well. Russia said that Iran and six global powers made progress in expert-level talks last week to ease the standoff over Tehran's nuclear program, but noted there was no breakthrough and said the risk remained that the talks could unravel. Meanwhile Iranian Supreme Leader Ayatollah Ali Khamenei warned that the Islamic Republic would destroy the Israeli cities of Tel Aviv and Haifa if its nuclear infrastructure came under attack from the Jewish state.
Unrest in other Middle East countries also continues to support oil prices as investors fear supply disruptions. The head of Syria's main opposition group resigned on Mar. 24, weakening the moderate wing of the two-year revolt against President Bashar al-Assad's rule and complicating Western efforts to back the rebels. Fighting also intensified in northern Lebanon as outgoing Prime Minister NajibMikati called for a "salvation" caretaker government to take over.
It is expected that marine bunker prices will keep irregular trend on the coming week.
|
Product |
380 cSt HSFO |
380 cSt LSFO |
|
Rotterdam 2013-03-28 |
608 |
625 |
|
Rotterdam 2012-03-28 |
704 |
764 |
|
Gibraltar 2013-03-28 |
635 |
660 |
|
Gibraltar 2012-03-28 |
733 |
815 |
|
St Petersburg 2013-03-28 |
545 |
565 |
|
St Petersburg 2012-03-28 |
460 |
590 |
|
Panama Canal 2013-03-28 |
638 |
720 |
|
Panama Canal 2012-03-28 |
746 |
- |
|
Busan 2013-03-28 |
662 |
813 |
|
Busan 2012-03-28 |
750 |
- |
|
Fujairah 2013-03-28 |
635 |
780 |
|
Fujairah 2012-03-28 |
736 |
- |
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.27 |
|
Light Crude Oil (WTI) |
$96.58 |
|
Brent Crude Oil |
$109.69 |