MABUX: Bunker market may continue downward trend
The Bunker Review is contributed by Marine Bunker Exchange
Brent crude is advancing. It was steady around $106 per barrel but is now Thursday at 14:45 CET up and above $107. The Market is worried over global economic growth and therefor dented the demand. The oil market has mostly escaped the recent sell off in risky assets, which was sparked by emerging markets turmoil and a mixed picture on global economic growth. The energy market is getting support from the fact that the global economy presumably is back on track.
The WTI is continuing to narrow its spread with Brent, which closed on Wednesday at $8.87, with its premium to U.S. crude continuing to narrow as more cold weather hit the United States. The spread touched $7.94 per barrel on Wednesday. The narrowing gap comes as many investors have pulled out of heavy speculation in the spread.
Large oil prices are unlikely in the near future, due to a significant increase in open interest positions last month. There are big bets on either side of the current price level, which signals the market will stay range bound.
Today Thursday Investors have been waiting for the European Central Bank’s policy meeting and if the bank would consider further stimulus. The ECB just came out with a press release:
Quote
The European Central Bank left interest rates unchanged on Thursday, holding off policy action while it waits for new economic forecasts next month to assess the deflation threat facing the euro zone. A sharp drop in inflation in euro zone to 0.7 percent in January, well below the ECB’s target of just under 2 percent, would have focused the minds of the bank’s policymakers. The ECB held its main rates at 0.25 percent, left the deposit rate it pays on bank deposits at zero and held its marginal lending facility – or emergency borrowing rate – 0.75 percent.
Unquote
The geopolitical situation is relatively calm at present since Iran seems to be willing to discuss further meanwhile the situation in Syria has little or no impact on the market.
Oil prices will likely be irregular in the coming week, but the general trend is expected to continue down.
|
Product |
380 cSt HSFO |
380 cSt LSFO |
|
|
|
|
|
Rotterdam 2014-02-06 |
570 |
612 |
|
Rotterdam 2013-02-06 |
636 |
667 |
|
|
|
|
|
Gibraltar 2014-02-06 |
601 |
654 |
|
Gibraltar 2013-02-06 |
655 |
700 |
|
|
|
|
|
St Petersburg 2014-02-06 |
360 |
400 |
|
St Petersburg 2013-02-06 |
530 |
590 |
|
|
|
|
|
Panama Canal 2014-02-06 |
601 |
698 |
|
Panama Canal 2013-02-06 |
662 |
760 |
|
|
|
|
|
Busan 2014-02-06 |
639 |
704 |
|
Busan 2013-02-06 |
674 |
845 |
|
|
|
|
|
Fujairah 2014-02-06 |
612 |
- |
|
Fujairah 2013-02-06 |
647 |
750 |
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 Feb.05 |
|
Light Crude Oil (WTI) |
$97,38 |
|
Brent Crude Oil |
$106,25 |