Bunker Global Open Directory News2020-06-25
MABUX: Bunker market this morning, Jun. 25.
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs decreased on Jun. 24:
380 HSFO - USD/MT - 292.11 (-1.49)
VLSFO - USD/MT – 348.00 (-2.00)
MGO - USD/MT – 427.21 (-0.29)
Meantime, world oil indexes also demonstrated downward changes on Jun. 24 as worries about the second wave of the coronavirus pandemic outweighed support from a gradual reopening of global economies.
Brent for August settlement decreased by $2.32 to $40.31 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for August fell by $2.36 to $38.01 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.30 to WTI. Gasoil for July delivery fell by $22.00.
Today morning oil indexes continue to decline weighed down by record high U.S. crude inventories and worries that a rapid resurgence in COVID-19 cases could choke a revival in fuel demand.
Worries about the second wave of COVID-19 cases in several U.S. states, where lockdowns had eased, and a rapid spread of infections in South America and South Asia are expected to keep a lid on fuel demand. At the same time there is a fear, that even if lockdowns are eased, people will stay home because of the perceived health risks. In another reminder of fuel demand woes, Australia's flagship airline, Qantas Airways, said today it expected little revival in international travel until at least July 2021, as it slashed a fifth of its workforce and grounded 100 planes.
Further pressure on prices came from a bigger-than-expected rise in U.S. crude inventories according to the Energy Information Administration. Moreover, crude oil production jumped last week for the first time since March. The U.S. government data showed crude stockpiles rose by 1.4 million barrels (more than the expected build of 299,000 barrels), driving inventories to a record high for a third straight week last week. That was mostly due to a flotilla of Saudi cargoes booked by U.S. refiners when prices slumped in March. Those shipments are due to ease soon. Crude oil stored at Cushing, Oklahoma, declined by 991,000 barrels.
The government estimated that production for the week ended Jun.19 was 11 million barrels a day, up from the 10.5 million barrel daily production the prior week and the first hike since mid-March, just before the full effect of coronavirus lockdowns hit the U.S. economy. Back then, production hit a record 13.1 million barrels per day.
As oil prices raised up to $40 a barrel following a pandemic-induced plunge, there’s a sense the shale industry is snapping back to life with Continental Resources Inc., EOG Resources Inc. and Parsley Energy Inc. all saying they’re restarting closed wells.
Global oil demand has started to recover as economies emerge from lockdown, while the OPEC+ have slashed output and U.S. shale producers have shut wells. But global inventories are still bulging. India’s oil imports in May hit the lowest since October 2011 as refiners with brimming stores of crude cut purchases. China, the world’s top crude importer, is also expected to slow crude imports in the third quarter, after record purchases in recent months.
We expect bunker prices may decline today: 10-15 USD down for IFO, 15-20 USD down for MGO.www.mabux.com