MABUX: Bunker Market this morning, Sept 16

The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
 
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) demonstrated irregular changes on Sep. 13

380 HSFO - USD/MT 401.90 (+11.41)
180 HSFO - USD/MT 443.92 (+11.50)
MGO - USD/MT 654.86 (-2.42)

Meantime, world oil indexes demonstrated downward changes on Sept.13.

Brent for November settlement decreased by $0.16 to $60.22 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for October delivery fell by $0.24 to $54.85 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 5.37 to WTI. Gasoil for October delivery decreased by 12.50.

Today indexes jump after attack of drons on Saudi Arabia’s oil facilities on Sept.14

Saudi Arabia's oil production and exports have been disrupted after drone attacks on two Aramco plants on Sept.14, including the world's biggest oil processing facility. The attacks have impacted 5,7 million barrels per day of oil production -- almost half the kingdom's current output. Yemen's Iran-aligned Houthi group claimed responsibility for attacks that knocked out more than half of Saudi oil output or more than 5% of global supply, but U.S. Secretary of State Mike Pompeo accused Iran of the attack on the world's energy supply. Iran dismissed accusations warned on Sept.15 that U.S. bases and aircraft carriers in the region were in range of its missiles.

Aramco gave no timeline for output resumption but said early Sept. 14 it would give a progress update in around 48 hours but a source close to the matter said the return to full oil capacity could take “weeks, not days”. At the same time disruption may push oil indexes to as high as $100 if Riyadh fails to quickly bring back supply.

U.S. President Donald Trump said on Sept.15 that he authorized the release of oil from the Strategic Petroleum Reserve to keep the markets well-supplied. The U.S. is now waiting to hear from the Kingdom to verify and proceed.

The US oil and gas rig count fell again this week, decreasing by 12 for the week , but US oil companies are still pumping oil at record rates. The total oil and gas rig count now stands at 886, or 169 down from this time last year. The total number of active oil rigs in the United States decreased by 5 reaching 733. In the United States, weekly oil production is still near an all-time high. So while the number of oil rigs have declined by 144 this year alone, production has grown from 11.7 million bpd at the beginning of the year, to 12.4 million bpd for week ending September 6.

A U.S. State Department spokeswoman has told media the department has evidence that the Adrian Darya 1 tanker had delivered its cargo to Syria. In response to a question on whether the notorious vessel had unloaded its cargo in Syria, Morgan Ortagus told that Iranian regime delivered oil to Syria, and that fuel goes straight into the tanks of troops that are slaughtering innocent Syrians.

TankerTrackers.com, however, tweeted in response to Ortagus’s statement that there was no evidence the cargo had been unloaded. The vessel, they said, was still off the Syrian coast, whilst if it had partially unloaded the cargo it could have continued to the nearest Syrian port and deliver the rest itself, and then leave for home.

Earlier this week, the UK raised an alarm that Iran had sold the Adrian Darya 1 cargo to Syria despite its assurances to the contrary and that the cargo was delivered to Syria. Iran rejected the statement saying the cargo had been sold to a private buyer at sea. Where the cargo had ended up was up to the buyer, the Iranians said.

We expect bunker prices to demonstrate upward changes today: about 10-12 USD up for IFO, about 10-15 USD up for MGO.