MABUX: Bunker market this morning, Jan 08, 2021
The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) changed irregular on January 07:
380 HSFO: USD/MT 354.01 (+3.13)
VLSFO: USD/MT 439.00 (0.00)
MGO: USD/MT 497.60 (-2.91)
Correlation of MBP (Market Bunker Prices) Index vs DBP (Digital Bunker Prices) Index in the four global largest hubs showed on January 7, that 380 HSFO fuel was undervalued in Rotterdam by $12, in Singapore by $5 and in Fujairah by $3, remaining overpriced in Houston (plus $11). VLSFO fuel remains moderately overpriced at all selected ports, ranging from plus $1 (Rotterdam) to plus $28 (Houston), with the exception of Singapore (was undervalued by $1). MGO LS, in turn, was undervalued in all selected ports ranging from minus $13 (Rotterdam) to minus $25 (Singapore), with the exception of Houston (was overvalued by $ 21). On January 7, for the first time, there was a situation when in one of the selected hubs (Singapore) all major fuels, including VLSFO, were slightly underestimated: the DBP Index exceeded the MBP Index.
World oil indexes rosel slightly on Jan.07 on a fall in U.S. stockpiles and in the wake of a pledge by Saudi Arabia to cut output by more than expected.
Brent for March settlement rose by $0.08 to $54.38 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for February delivery increased by $0.20 to $50.83 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.55 to WTI. Gasoil for January delivery gained $1.50 – $436.25.
Today morning oil indexes continue slight upward evolution.
Wednesday’s storming of the U.S. Capitol by supporters of President Donald Trump appeared to have little impact on global fuel indexes, while a slight rise in global equities suggested investors believed President-elect Joe Biden would be empowered to spend more freely.
Fuel indexes are been supporting by a pledge by Saudi Arabia to cut output by an additional 1 million barrels per day (bpd) in February and March. UBS analysts raised their forecast for Brent to $60 per barrel by mid-year, citing the Saudi output decision.
The UK government, though the UK Space Agency, is to fund a project that will use satellite analytics to track the greenhouse gas and pollution emissions of shipping fleets with a new approach to establish emission audits of shipping fleets and their individual vessels. The project builds upon previous work developing analytics solutions for ports and harbours, extending this to coastal and international waters.
We expect IFO bunker prices may rise today by 1-2 USD, while MGO prices may also gain 1-3 USD.
