Bunker Global Open Directory News2020-10-08
MABUX: Bunker Market this morning, 8th October, 2020
Oil Market close yesterday evening Wednesday
Oil falls 2% on U.S. stimulus impasse, stockpile rise.
Oil prices fell nearly 2% on Wednesday after U.S. President Donald Trump dashed hopes for another stimulus package to boost the coronavirus-hit economy and after U.S. crude inventories rose in the most recent week.
Brent crude futures fell 66 cents, or 1.6%, to settle at $41.99 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 72 cents, or 1.8%, to settle at $39.95 a barrel.
White House Chief of Staff Mark Meadows said he was not optimistic that a comprehensive deal could be reached on further COVID-19 financial aid and that the Trump administration backed a more piecemeal approach.
“Trump pulling out of relief negotiations generates a lot of uncertainty about the economy,” said Harry Tchilinguirian, head of commodities research at BNP Paribas.
Oil prices were also hit by a slightly larger-than-expected build in U.S. crude inventories. Crude inventories rose 501,000 barrels last week, government data showed, compared with analysts' expectations in a Reuters poll for a 294,000-barrel rise.
Meanwhile, gasoline stocks fell by 1.4 million barrels in the week to 226.8 million barrels, their lowest since November, compared with expectations for a 471,000-barrel drop. Distillate stockpiles fell by 962,000 barrels, in line with expectations.
“We are seeing solid improvement in the refined product demand front,” said John Kilduff, partner at Again Capital LLC in New York.
Energy companies secured offshore platforms and evacuated workers on Tuesday, some for the sixth time this year, as Hurricane Delta threatened U.S. oil output in the Gulf of Mexico.
The storm has shut 29% of offshore oil production in the Gulf, which accounts for 17% of total U.S. crude output.
In Norway, the Lederne labour union said on Tuesday that it will expand oil strike from Oct. 10 unless a wage deal can be reached. Six offshore oil and gas fields shut down on Monday because of the strike, cutting Norway’s output capacity by 8%.
Norway's Johan Sverdrup oilfield, the North Sea's largest with an output capacity of up to 470,000 barrels of oil per day, will likely have to shut production unless the strike ends by Oct. 14, operator Equinor said on Wednesday.
Oil Market today Thursday morning
Oil prices rise as Hurricane Delta approaches U.S. Gulf of Mexico.
Oil prices rose on Thursday as oil workers evacuated rigs in the U.S. Gulf of Mexico ahead of Hurricane Delta, though fuel demand concerns persisted on fading chances for an economic stimulus deal in the United States, the world’s biggest oil consumer.
With Hurricane Delta forecast to intensify into a Category 3 storm with winds of up to 120 miles per hour (193 km per hour), oil producers have evacuated 183 offshore facilities and halted nearly 1.5 million barrels per day (bpd) of oil output.
The Gulf of Mexico produced 1.65 million bpd in July, according to the U.S. government. The region, which accounts for 17% of U.S. crude output, has been hit by several storms over the past few months, each of which only briefly dented oil output.
Hopes for a further pick-up in U.S. fuel demand faded as White House officials reiterated on Wednesday that “stimulus negotiations are off” a day after President Donald Trump halted talks on a broad relief package.
The possibility that there will be no upcoming economic support measures comes as government data on Wednesday showed demand for oil at U.S. refineries is 13.2% lower than a year earlier, underscoring the plunge in fuel demand from the disruptions caused by the coronavirus pandemic.
“As global oil demand falters, there is increasing pressure on global oil supply to adjust lower to keep prices supported,” Dhar said, forecasting Brent would average $41 a barrel in the current quarter.
Oil Future close 7th October, 2020
Brent crude: $ 41.99 (-0.66) /brl FM delivery Dec (FM=Front Month)
Light crude (WTI): $ 39.95 (-0.72) /brl FM delivery Nov
Gasoil ARA; $ 332.25 (-9.50) /mton FM delivery Oct
NY Harbor Ulsd: $ 357.36 (-8.56) /mton FM delivery Nov
Oil Futures trading at GMT 05.10; Brent: $+0.10, WTI: $+0.03.
Expect Oil prices little change today, but all depends mostly on what Trump intends to do during the day.
Expect bunker prices to drop today, based on Oil Future close last night. Fuel Oil all over down 4 usd/mton. MGO and NY Harbor Ulsd down 9 usd/mton.www.mabux.com