Bunker Global Open Directory News2020-09-10
Bunker Weekly Viewpoint
Oil prices have been dropped down for a week. Slowing economic activity around the world, restricted mobility, and fears of the second wave of COVID and of another trade war are just a few of the key factors that will continue to weigh on oil and fuel prices and could cause more significant move to the downside.
The World Bunker Index MABUX has declined for a week. The 380 HSFO index fell from 310 to 293 USD/ MT (-17.00 USD), VLSFO lost 23.00 USD: from 358 to 335 USD / MT, MGO declined by 24 USD: from 435 to 411 USD / MT. The Global Scrubber Spread (SS) (price difference between 380 HSFOs and VLSFOs) continues to narrow: this time by 5.66 USD and averaged USD 44.73 (50.39 USD a week ago).
Meantime, SS Spread in Rotterdam has dropped during the week from 35.00 USD (03.09) to 29.00 USD today, Sep.10. Average value of SS spread for the week decreased from 42.17 USD to 33.50 USD.
In Singapore SS Spread has demonstrated downward trend as well during the week: from 57 USD to 54 USD, although it was more steady than in ARA. Average weekly SS Spread lost 5.34 USD: from 60.17 USD to 54.83 USD.
As per Integr8 Fuels, over the course of a year the percentage of straight run-based components in very low sulphur fuel oils (VLSFO) has dropped from 44% to 17%, while the distillate blend element has increased from a small percentage to 30%. There was also an increase in the vacuum gasoil (VGO) component from 9% to 35% and, conversely, a decline in the cracked material component from 23% last July to 7% in July 2020.
Europe, one of the world's biggest diesel consumers, faces a major glut which combined with weak demand is weighing heavily on the ability of the region's refineries to keep running. Having hit record lows at the height of the COVID-19 pandemic in April and May, European diesel margins are trending lower again after posting a modest recovery in July. While the easing of lockdowns in recent months across Europe has boosted diesel demand, some countries are seeing the recovery stall, including Spain and the UK. Besides, the diesel market is also afflicted with high stocks: Europe now accounts for the biggest share of global middle distillates floating storage globally.www.mabux.com