Bunker prices to continue on mixed trend next week
The Bunker Review is contributed by Marine Bunker Exchange
Brent crude oil fell to $103.70 a barrel on Thursday as a contraction in the German economy underscored sluggish demand in Europe while supply remained strong despite conflict in key exporting countries Iraq and Libya. Germany’s economy shrank in the second quarter and France posted no growth, data showed, adding to jitters as the euro zone trade sanctions with Russia over the crisis in Ukraine. But at the moment there seems to be a general weakness in the oil market, not only because of enough supply but also due to weak demand. The September Brent contract, expiring on Thursday, fell to $102.37 on Wednesday, weakest since July 2013. The October contract was trading down 20 cents at $104.86 while U.S. crude was down 12 cents at $97.47 a barrel.
In Iraq, OPEC’s second largest producer, advances by Islamic State militants in the north of the country have had little impact on output from its southern oilfields. The supply outlook has been pretty rosy. OPEC production has been pretty good. Supply in Iraq is unaffected.
U.S. crude inventories rose by 1.4 million barrels last week, data from the Energy Information Administration (EIA) showed on Wednesday, against analysts’ expectations for a 2 million barrel drop.
Crude output by the world’s top oil consumer is also expected to rise, the EIA said, as it raised its estimate for 2014 U.S. output to 8.5 million barrels per day (bpd) and to 9.3 million bpd for next year, which would be the highest annual average production level since 1972.
Libya, an OPEC member, will reopen its largest oil export terminal within days. The Es Sider port is scheduled to start loading crude in days, according to Mohamed Elharari, a spokesman at state run National Oil.Corp. The facility, along with Ras Lanuf, was handed over last month by rebels seeking self-rule in the eastern regions. All other Libyan terminals were open except for Zueitina, where workers were engaged in a dispute with management, Elharari said yesterday.
Bunker prices mixed movements will likely prevail in the coming week expect.
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)