Bunker Global Open Directory News2019-11-05
MABUX: Bunker Market this morning Nov. 05.
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) increased on Nov.04
380 HSFO - USD/MT 365.57 (+6.75)
180 HSFO - USD/MT 406.20 (+6.60)
MGO - USD/MT 667.73 (+5.25)
Meantime, world oil indexes also demonstrated upward evolution on Nov.4 on optimism at the prospect of a U.S. - China trade deal and hopes for deeper output cuts by OPEC and its allies next month.
Brent for January settlement increased by $0.44 to $62.13 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for December delivery rose by $0.34 to $56.54 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $5.59 to WTI. Gasoil for November delivery increased by $16.00.
Today indexes are stable as market awaits this week’s crude stockpile data.
Weekly US crude inventory data due for release today and tomorrow is expected to show a further 2.7 million-barrel build for the week ending October 25.
Hopes for a trade deal revived after Washington and Beijing said late last week that they had made progress towards resolving their protracted trade war, with U.S. officials indicating that a partial deal could be signed this month. Adding to the optimism, Commerce Secretary Wilbur Ross said on Nov.3 licenses for U.S. companies to sell components to China's Huawei would come "very shortly".
China's President Xi Jinping and U.S. President Donald Trump have been in touch all along on the trade negotiations between the two sides, Chinese Foreign Ministry spokesman Geng Shuang said in remarks at a news briefing in Beijing on Monday. At the same time, Chinese government officials are considering locations in the U.S. where leader Xi Jinping would meet U.S. President Donald Trump to sign the deal
Meanwhile production cuts by OPEC+ - 1.2 million barrels per day are also underpinning prices. Iran oil minister Bijan Zanganeh said that OPEC could further slash production from the current 1.2 million barrel per day at its next meeting on December 5.
At the same time, Russia lowered its oil output to 11.23 million barrels per day (bpd) last month from 11.25 million bpd in September, missing again its obligations under a global pact to curb production. According to calculations, the pact indicates Russia should cap output at around 11.17-11.18 million bpd. Russian oil pipeline exports in October rose to 4.88 million bpd from 4.623 million bpd in September.
Moreover, OPEC's output recovered in October from an eight-year low after a rapid rebound in Saudi Arabia's production from attacks on its oil infrastructure in September, offsetting losses in Ecuador and voluntary cuts under the pact.
Expect bunker prices to demonstrate upward changes today: 1-3 USD up for IFO, 10-15 USD up for MGO.www.mabux.com