MABUX: Bunker Market this morning July, 10

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) demonstrated upward changes on July, 09:

380 HSFO - USD/MT 428.13 (+3.69)
180 HSFO - USD/MT 464.58 (+2.65)
MGO - USD/MT 653.37 (+0.66)

Meantime, world oil indexes demonstrated slight irregular changes on July, 09

Brent for September settlement increased by $0.05 to $64.16 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for August delivery rose by $0.17 to $57.83 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 6.33 to WTI. Gasoil for July delivery decreased by $3.00.

Today indexes rise after American Petroleum institute (API) reported that U.S. stockpiles fell for a fourth week in a row

U.S. crude stockpiles fell more than forecast last week, while gasoline inventories decreased and distillate stocks built. Crude inventories fell by 8.1 million barrels in the week to July 5 to 461.4 million, compared with expectations for a decrease of 3.1 million barrels. Official figures from the government's Energy Information Administration (EIA) are due later today.

Still, U.S. crude oil production is forecast to rise to a record of 12.36 million barrels per day (bpd) in 2019 from the high of 10.96 million bpd last year, the EIA's Short Term Energy Outlook said on July,09.

Oil prices also get support from an escalation in U.S.-Iran tensions after Tehran’s decision this week to enrich uranium beyond levels it promised world powers in a doomed agreement from four years ago. Iran threatened on July,07 to restart deactivated centrifuges and step up its enrichment of uranium to 20%, a move that further undermines the 2015 nuclear agreement that Washington abandoned last year. The U.S. President Donald Trump had warned Tehran over the weekend to “be very careful” about the resumption of enrichment. Rising tensions between Iran and the United States have brought the two countries close to conflict. Last month, President Donald Trump called off air strikes at the last minute in retaliation for Iran shooting down a U.S. drone.

Meanwhile, British Petroleum continued to shelter oil tanker in the Persian Gulf on July, 07 for fear of retaliation. BP was worried the ship could be attacked by Iran, in response to the seizure by British forces of a tanker allegedly shipping Iranian crude to Syria last week.

Trade disputes, which threaten to dent global demand for oil, appeared to be held in check. Top negotiators from the U.S. and China are expected to talk via phone this week in preparation for face-to-face meetings in Beijing.

In a sign that global trade tensions are taking a toll on corporate investment, figures on Monday showed Japan's core machinery orders fell by the most in eight months. The country is the world's fourth-largest user of crude.

U.S. Federal Reserve Chair Jerome Powell, disappointed markets looking for early clues on whether he would support a rate cut later this month as he completely left out any references to that in a speech he delivered on July,9.

We expect bunker prices to demonstrate slight irregular changes today: 1-3 USD up for IFO, 2-4 USD down for MGO.