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) demonstrated slight upward trend on Jan.27:
380 HSFO: USD/MT – 366.23 (+0.78)
VLSFO: USD/MT – 461.92 (+0.92)
MGO: USD/MT – 518.25 (+3.00)
As of January 27, correlation of MBP Index (Market Bunker Prices) vs DBP Index (MABUX Digital Benchmark (Digital Bunker Prices) in the four global largest hubs showed that in three of the four selected ports 380 HSFO and MGO LS were moderately undervalued. According to DBP Index, 380 HSFO fuel in Rotterdam, Singapore and Fujairah was undercharged in the range from minus 4 dollars (Fujairah) to minus 13 dollars (Singapore), and MGO LS fuel - in the range from minus 14 dollars (Rotterdam and Fujairah) to minus $ 27 (Singapore). At the same time, VLSFO fuel remained overvalued in all selected ports ranging from plus $ 9 (Rotterdam) to plus $ 26 (Houston). Houston remains the only port of the top 4, where the overcharging is registered for all types of fuel.
World oil indexes changed irregular on Jan.27 as industry data showing U.S. crude inventories fell unexpectedly balanced persistent concerns about demand as coronavirus cases top 100 million globally.
Brent for March settlement fell by $0.10 to $55.81 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March delivery increased by $0.24 to $52.85 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.96 to WTI. Gasoil for February delivery gained $5.00 – $456.00.
Today morning oil indexes have turned into slight downward movement.
The number of global coronavirus cases has surpassed 100 million as infections rise in Europe and the Americas, and Asia scrambles to contain fresh outbreaks. China, the second-largest oil consumer, has recently grappled with a coronavirus resurgence, but official Chinese data showed 75 new confirmed cases of COVID-19 on Jan.27, the lowest daily rise since Jan. 11. This eased concern of a sharp drop in travel that threatened a new hit to demand over the Lunar New Year, when hundreds of millions typically make journeys.
The U.S. Energy Information Administration reported a crude oil inventory draw of 9.9 million barrels for the week to January 22. Fuel inventories were mixed. The crude oil draw compared with a build of 4.4 million barrels for the previous week. It also compared with analyst expectations for a modest increase of some 600,000 barrels.
We expect bunker prices may rise slightly today: IFO – by 1-3 USD, MGO – in a range of plus 3-5 USD.