Bunker Global Open Directory News2020-06-23
MABUX: Bunker market this morning, Jun. 23.
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs increased on Jun. 22:
380 HSFO - USD/MT - 290.32 (+4.13)
VLSFO - USD/MT – 347.00 (+5.00)
MGO - USD/MT – 425.11 (+4.73)
Meantime, world oil indexes also demonstrated upward changes on Jun. 22.
Brent for August settlement increased by $0.89 to $43.08 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for August rose by $0.98 to $40.73 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.35 to WTI. Gasoil for July delivery didn’t change.
Today morning oil indexes are steady amid more signs of fuel demand picking up after the depths of the coronavirus pandemic as major crude producers continue to stick to supply cuts.
The reopening of some U.S. states and countries around the world after lockdowns has helped sustain oil's recent rally as demand for fuel returns. In New York, streets were clogged with traffic as the worst affected city in the United States emerged from more than 100 days of lockdown. Moreover, Delta Air Lines is resuming flights to China, and New Jersey Governor Phil Murphy said that Atlantic City casinos and indoor dining will reopen statewide on July 2. The U.K. reported fewer than 1,000 new cases for the first time since its lockdown was declared March 23.
However, signs of a second wave of Covid-19 weighed on sentiment, limiting the market are upside. At least 22 of the 50 US states have reported a rise in Covid-19 cases after reopening their economies over the past two months. In Arizona, a particular hot spot, infections shot up 54% in a week. These come as more than 2.4 million Americans have already been infected by the coronavirus, with a death toll breaching 122,000. A new model by the University of Washington predicts 200,000 Covid-19 deaths in the United States by Oct. 1.
Meanwhile, U.S. and Canadian oil and gas drillers cut the number of the rigs they are operating to a record low. U.S. oil rigs contracted for drilling dropped by 10 to 189 last week, their lowest since June 2009, according to weekly data from energy services firm Baker Hughes Co. Gas rigs fell by three to 75, the lowest on record according to data going back to 1987.
Oil prices are also supported by indications that members of OPEC+ are complying with agreed record production curbs to balance the market. Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said last week that OPEC+ is on track to rebalance the market, and some of the world’s largest traders are seeing a rapid recovery in demand.
At the same time, prices indexes were pressured after White House trade adviser Peter Navarro told on Jun.22 that the U.S.’s trade deal with China is “over”, crushing hopes of salvaging the hard-won phase one trade deal reached earlier this year. China, one of the world’s biggest oil importers, has yet to respond to Navarro’s comments, but an escalation of U.S.-China tension threatens a delay in the global economic recovery from COVID-19, in turn increasing the risks of an oversupply.
The market is now awaiting the predictions in crude oil supply from the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA), due later today and on tomorrow respectively.
We expect bunker prices may demonstrate upward changes today: 3-5 USD up for IFO, 1-3 USD up for MGO.www.mabux.com