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Bunker Global Free Directory

Bunker Global Open Directory News

2019-05-09

MABUX: Bunker market this morning, May 09.

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) changed insignificant and irregular on May 08:

380 HSFO - USD/MT - 417.21(-3.00)

180 HSFO - USD/MT - 464.57(-2.29)

MGO - USD/MT - 656.64(+2.21)

Meantime, world oil indexes rose on May 08 boosted by a surprise drawdown in U.S. crude stockpiles, but an escalating U.S.-Chinese trade fight limited oil’s gains as investors worried about the global outlook for energy demand.

Brent for July settlement increased by $0.49 to $70.37 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for June delivery gained $0.72 to $62.12 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 8.25 to WTI. Gasoil for May delivery got $5.00.

Today morning oil indexes turned into slight downward trend.

U.S. crude inventories fell 4 million barrels last week, compared with analysts’ forecast of a 1.2 million-barrel build.

The fuel markets are on edge after Trump issued a threat to hike tariffs at the end of this week. He blamed China for slow-walking trade talks, and said that the 10 percent tariffs on $250 billion worth of goods would rise to 25 percent, while a 25 percent tariff on a further $350 billion worth of goods would also go into effect.

It is rather possible that Iran will restart parts of its nuclear program in response to relentless pressure from the U.S. and the Trump administration’s own withdrawal from the 2015 nuclear accord. President Hassan Rouhani said that Iran would reduce some of its minor and general commitments. Iran also said it would take reciprocal actions to the U.S. withdrawal from the agreement. The development comes shortly after the U.S. sent warships to the region as a message to Iran.

The U.S. re-imposed sanctions on Iran in November in 2018, demanding all countries stop importing oil from the country. The sanctions have already halved Iranian crude oil exports over the past year to less than 1 million barrels per day, and shipments to customers may drop to as low as 500,000 barrels per day in May as sanctions tighten.

The International Energy Agency said that investment in renewables stagnated last year. Last year, the world added 180 GW of renewable energy, the same increase as the year before and the first time since 2001 that net capacity additions did not expand year-on-year. The IEA said that level of growth is only about 60 percent of what is needed for the world to hit its climate targets in the long run.

The U.S. Energy Information Administration (EIA) in turn reported that Saudi Arabia, the UAE, Kuwait and Russia will all boost oil production to compensate for the loss of Iranian crude. In addition, US production will continue to climb, reaching a record 13.38 million bpd in 2020, a 350,000 bpd increase from last month’s forecast. The agency also said that recent increases in futures prices have been mainly concentrated in near-month contracts indicating current market prices are accounting for potential effects for near-term crude oil supply disruptions and inventory withdrawals without as large a price increase on longer-dated crude oil contracts.

Oil facilities in Nigeria’s Nembe region have been temporarily shut down due to protests. Leaks along the Nembe Creek Trunkline, one of two major pipelines for Bonny light, had previously forced a shut down. The latest outage will keep Bonny light under force majeure.

We expect bunker prices may add 3-5 USD today, May 09.

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