MABUX: Bunker Market this morning June, 11
The Bunker Review was contributed by Marine Bunker Exchange
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) declined on June. 10
380 HSFO - USD/MT 400.52 (+4.72)
180 HSFO - USD/MT 439.77 (+2.73)
MGO - USD/MT 647.61 (+0.92)
Meantime, world oil indexes demonstrated irregular changes on June. 10 as U.S.-China trade tensions continued to threaten demand for oil, but tight crude supply and the swift end to a trade dispute between Mexico and the United States offered support.
Brent for August settlement decreased by $1.00 to $62.29 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for July delivery fell by $0.73 to $53.26 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 9.03 to WTI. Gasoil for June delivery increased by $1.25.
Today indexes stable on expectations that producer group OPEC and its allies will keep withholding supply to prevent prices from falling.
A deal between the United States and Mexico to combat illegal migration from Central America late last week removed the threat of U.S. tariffs on goods imported from Mexico. Last month, Trump threatened 5% tariffs on Mexican goods to be imposed on June,10. The duties would have increased every month until they reached 25% in October, unless Mexico stopped illegal immigration across its border with Mexico. On June,07 the tariffs were called off, after the United States and Mexico announced an agreement on immigration. The agreement would expedite a program known as the Migration Protection Protocols, which sends people seeking asylum in the United States to wait in Mexico as their cases are processed. The deal would also send the Mexican National Guard police force to its own southern border, where many Central Americans enter Mexico.
At the same time there are still concerns about the global economy with no signs of an end in sight to the United States' trade war with China. U.S. President Donald Trump said he was ready to impose another round of tariffs on Chinese imports if he does not reach a trade deal with China’s president at a Group of 20 summit later this month. Trump told, that he could impose tariffs of 25%, or even higher on $300 billion in Chinese goods. China’s foreign ministry said that China is open for more trade talks with Washington but has nothing to announce about a possible meeting.
China’s crude oil imports slipped to around 40.23 million tonnes in May, from an all-time high of 43.73 million tonnes in April, customs data showed, due to a drop in Iranian imports caused by U.S. sanctions and refinery maintenance.
Oil indexes were supported by comments of OPEC's biggest producer Saudi Arabia on June,07 that the group was close to agreeing an extension to supply cuts. Saudi Energy Minister Khalid al-Falih said on June, 10 that Russia was the only oil exporter still undecided on the need to extend the output deal, as Moscow considers whether further cuts could allow the United States to take Russian market share. At the same time, Russia on June,10 said it might support an extension of supply cuts that have been in place since January, warning oil prices could fall as low as $30 per barrel if producers supply too much crude.
We expect bunker prices to demonstrate irregular changes today: 3-5 USD down for IFO, 1-3 USD up for MGO.