MABUX: Bunker market this morning, Mar 16, 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 Gasoil) in the main world hubs) demonstrated slight irregular changes on March 15:
HSFO: USD/MT – 435.08 (+1.06)
VLSFO: USD/MT – 539.89 (-0.29)
MGO: USD/MT – 610.61 (+2.34)
Correlation between the Market Bunker Price Index (MBP) vs MABUX Digital Bunker Price Index (DBP) in four major hubs on March 15 demonstrated remained undercharging of 380 HSFO bunker grades in all selected ports in a range from minus 7 USD (Houston) to minus 27 USD (Singapore). VLSFO is undercharged in all ports except of Houston in a range from minus 13 (Rotterdam, Fujairah) to minus 23 USD (Singapore). In Houston this kind of fuel is overcharged by 22 USD. MGO LS is undervalued in all ports except of Houston in a range from minus 5 USD (Fujairah) to minus 45 (Singapore) and overcharged in Houston by 6 USD.
Meantime, world oil indexes decreased on March 15.
Brent for May settlement decreased by $0.34 to $68.88 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April fell by $0.22 to $65.39 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.49 to WTI. Gasoil for April delivery lost $9.25.
Today oil indexes continue to slide down over concerns about rising U.S. crude oil stockpiles, as well as the impact of a delay in European COVID-19 vaccines on fuel demand recovery.
China’s industrial output growth quickened in January-February, beating expectations, while its daily refinery throughput data rose 15% from a year earlier. Top oil exporter Saudi Arabia cut supply of April-loading crude to at least four north Asian buyers by up to 15%, while meeting the normal monthly requirements of Indian refiners. Earlier in February, the United States overtook Saudi Arabia to be India's second-largest supplier, data from trade sources showed.
Germany, France, and Italy are the latest European countries to suspend usage of the AstraZeneca COVID-19 vaccine over rising concerns about possible side effects. A growing list of countries, including Ireland and the Netherlands, have already suspended usage. This step may potentially delay economic recovery from the virus and adversely affect fuel demand.
We expect bunker prices may demonstrate downward changes today. Prices for 380 HSFO may decrease by 1-3 USD, prices for MGO may decline by 5-9 USD.
