Bunker Review W.18, 2013
The Bunker Review is contributed by Marine Bunker Exchange
Weak demand outlook on the concerns of global economic slowdown.
A string of disappointing reports in recent weeks from the United States and China have stoked fears of global economic slowdown and weakened the demand outlook.
A weaker-than-expected report on the U.S. economy provided the fuel for a decline. The U.S. Commerce Department reported the world's largest economy grew at an annual rate of 2.5 percent in the first-quarter (below expectations of 3 percent). It is signaling the potential for another year of sluggish growth that threatens to weigh on fuel demand.
Crude inventories weakened the demand outlook as well. Data from the Energy Information Administration showed crude stocks in the United States rose by 6.7 million barrels last week to their highest level on record at 395.28 million barrels. The week's steep increase in stockpiles was due largely to an increase in U.S. oil imports to the Gulf Coast, and to the restart of several Gulf-area refineries. The rate of oil imports to the U.S. still remains low, with last week's figure down 7.4% from a year earlier.
A sluggish economic recovery and a slowdown in inflation pushed U.S. Federal Reserve to maintain its stimulus policy to support an economic recovery that is nearly four years old. The Fed said recently it will keep buying $85 billion in bonds each month to keep interest rates low and spur growth, but added it could lift this pace of purchases depending on the economy's path.
Oil extended declines after China Federation of Logistics and Purchasing, an industry group, released data on May 01 showing that manufacturing grew at a slower pace in April and that export orders had been declining steadily. Purchasing Managers' Index fell to 50.6 in April from 50.9 in March, ,raising fresh doubts about the strength of the economy after a disappointing first quarter.
Meanwhile, Crude prices may increase through May 3 on speculation that the European Central Bank will cut its key interest rate to a record low of 0.5 percent after data on Apr.30 showed inflation in the euro zone has fallen to a three-year low and unemployment had hit a record of 12.1 percent. However, this step is seen doing little to pull the euro zone out of a recession.
On the supply side, more oil is coming to the world market. OPEC crude production climbed in April to a five-month high, led by gains in Saudi Arabia, the United Arab Emirates and Kuwait. The output rebounded from its lowest monthly level in more than a year due to the resolution of export disruptions in Iraq and Libya and a rise in Iranian sales. The 12-member producer group is due to meet on May 31 in Vienna to review its output target.
For the coming week expect marine bunker prices to go slightly upwards.
|
Product |
380 cSt HSFO |
380 cSt LSFO |
|
|
|
|
|
Rotterdam 2013-05-02 |
573 |
589 |
|
Rotterdam 2012-05-02 |
697 |
742 |
|
|
|
|
|
Gibraltar 2013-05-02 |
600 |
620 |
|
Gibraltar 2012-05-02 |
718 |
785 |
|
|
|
|
|
St Petersburg 2013-05-02 |
530 |
550 |
|
St Petersburg 2012-05-02 |
435 |
525 |
|
|
|
|
|
Panama Canal 2013-05-02 |
619 |
697 |
|
Panama Canal 2012-05-02 |
715 |
- |
|
|
|
|
|
Busan 2013-05-02 |
632 |
792 |
|
Busan 2012-05-02 |
740 |
- |
|
|
|
|
|
Fujairah 2013-05-02 |
614 |
730 |
|
Fujairah 2012-05-02 |
722 |
- |
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 May 02 |
|
Light Crude Oil (WTI) |
$91,03 |
|
Brent Crude Oil |
$99,95 |