MABUX: Bunker Market this morning, Sep. 26
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) continued downward changes on Sep. 25
380 HSFO - USD/MT 435.71 (-2.40)
180 HSFO - USD/MT 475.36 (-0.50)
MGO - USD/MT 674.55 (-5.56)
Meantime, world oil indexes also declined on Sept.25 an unexpected rise in U.S. crude inventories.
Brent for November settlement decreased by $0.71 to $62.39 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for November delivery fell by $0.80 to $56.49 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 5.90 to WTI. Gasoil for October delivery decreased by 9.50
Today indexes are steady on positive trade news.
U.S. President Donald Trump told that a trade agreement with China could happen sooner than expected, rising hopes that global oil demand will increase.
Trump’s comments came just one day after he said he would not accept a “bad trade deal” and accused China of unfair trade practices.
On the other hand, Saudi Aramco has restored Saudi Arabia’s oil production capacity to 11.3 million bpd—the level before the attacks on oil facilities ten days ago. There is information, that Saudi Arabia is recovering from the September 14 attacks faster than expected—about a week faster than Saudi officials have given as a date to recover the full capacity, the end of September. The attacks on Saudi oil infrastructure on September 14 knocked 5.7 million bpd—or 5 percent of global oil supply—offline. The market initially panicked, with prices jumping the most on record last Monday, until Saudi Arabia started to insist through official statements and sources that it would fully restore oil supply by the end of September.
Oil prices were under some pressure after data showed an unexpected rise in U.S. crude inventories. According to the Energy Information Administration, U.S. oil stockpiles rose by 2.4 million barrels last week, against expectations for a draw of 250,000 barrels. It was the second-straight weekly crude build cited by the EIA after four-straight weeks of unseasonably heavy crude draws late into the summer that took 24 million barrels off stocks.This could be the clearest signal that the post-summer crude draws are over and that we could see substantial builds here on. U.S. production remains near record highs at 12.4 million bpd, while exports are steady at just under 3 million bpd.
The United States is imposing new sanctions on certain Chinese entities and people who it accuses of knowingly transferring oil from Iran in violation of Washington’s curbs on Tehran. The U.S. Treasury Department announced that it placing sanctions on five Chinese nationals and six entities, including two Cosco Shipping Corporation subsidiaries.
Attacks on Sept. 14 on the oil facilities of Saudi Arabia, widely blamed on Iran, have rattled the Middle East and raised concerns about a broader war. Iran denies involvement. He said Washington was also ramping up efforts to educate countries on the risks of doing business with Iran’s Revolutionary Guard Corps entities and that it will punish those who continue to engage with them in violation of sanctions. In a speech to the annual gathering of world leaders on Tuesday, U.S. President Donald Trump promised to keep trying to squeeze Iran’s economy with sanctions until Tehran agrees to give up what Washington says is a pursuit of nuclear weapons. Iran has said its nuclear program has always been for peaceful purposes only.
Venezuelan state oil company PDVSA ordered an increase in exports to ally Cuba to ease fuel shortages on the island this month, challenging U.S. sanctions on shipping firms involved in the trade. Two tankers set sail this week from PDVSA's ports and at least nine more are lining up to load crude and fuel bound for Cuba, according to the data and sources. So far in September, the Venezuelan firm has exported 119,000 barrels per day (bpd) of crude and fuel to Cuba, an increase from 70,000 bpd in August.
Expect bunker prices to demonstrate downward changes today: 2-5 USD down for IFO, 7-10 USD down for MGO.