MABUX: Bunker market this morning, Oct.20
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs) changed irregular on October 19:
380 HSFO: USD/MT 299.08 (+0.70)
VLSFO: USD/MT 352.00 (-2.00)
MGO: USD/MT 415.11 (-2.02)
Meantime, world oil indexes decreased on Oct.19 after China released data showing a smaller-than-expected rise in GDP during the third quarter and on Libya’s plan to boost output.
Brent for November settlement decreased by $0.31 to $42.62 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for November delivery fell by $0.05 to $40.83 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $1.79 to WTI. Gasoil for November delivery lost $3.75 – $341.00.
Today morning oil indexes continue slight downward trend.
China reported a 4.9% growth in GDP year-on-year for the third quarter earlier in the day, smaller than the 5.2% growth in forecasts. However, other indicators showed a strong recovery overall for the world’s second largest economy. Industrial production grew 6.9% year-on-year and retail sales grew 3.3% year-on-year. The unemployment rate was 5.4%, down from the previous quarter’s rate of 5.6%.
The IEA said that the oil market has stabilized, with stocks drawing 0.9 million bpd in the third quarter, but that the outlook is fragile. As per Agency, the rising cases of covid-19 in many parts of the world surely raises doubts about the robustness of the anticipated economic recovery and thus the prospects for oil demand growth.
The OPEC+ Joint Ministerial Monitoring Committee met virtually on Oct.19 to discuss the alliance’s production curbs. A renewed rise in the COVID-19 cases and a stalling demand recovery has prompted calls for the alliance to scrap their plan of easing output cuts from 7.7 million barrels a day to 5.8 million barrels a day on Jan. 1. However, it is expected that any concrete decisions will be taken only on the group meetings on the 30 November and 1 December.
The global count of confirmed COVID-19 cases climbed above 40 million on Oct.19, while the death toll rose to 1.1 million. The number of new U.S. infections fell below 50,000, the lowest in nearly a week, as deaths neared 220,000 and moving averages suggested the spread is picking up steam. Several European countries have moved to increase restrictions on activity as the number of infections have risen.
Libya has significantly boosted its production after the easing of a blockade by eastern forces in September. The 70,000-barrels-per-day Abu Attifel oilfield is expected to begin its restart on Oct. 24 after being shut down for months.
Britain is urging businesses to step up preparations for a no-deal exit from the European Union when transitional arrangements end. Talks between Britain and the EU on a trade deal ended in recrimination last week, with both sides saying the other needed to compromise. British Prime Minister Boris Johnson said on Oct.16 there was no point in continuing discussions and it was now time to prepare for an exit without a trade deal. Both parties will hold a call with business leaders this week, while 200,000 traders will receive a letter setting out new customs and tax rules.
We expect IFO bunker prices will be steady today while MGO prices may fall by 3-6 USD.