Home World MABUX: Bunker market this morning, Jan 19, 2021

MABUX: Bunker market this morning, Jan 19, 2021

The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO Gasoil) in the main world hubs) decreased on Jan.18:

380 HSFO: USD/MT 362.89 (-4.80)
VLSFO: USD/MT 458.00 (-3.00)
MGO: USD/MT 514.13 (-2.42)

Correlation between the Market Bunker Price Index (BPI) vs MABUX Digital Bunker Price Index (DBP) in four major hubs on Jan.18 showed undercharging of 380 HSFO bunker grades in Singapore (-12 USD) and Rotterdam (-17 USD) and overcharging in Fujairah (+2 USD) and Houston (+7 USD). At the same time, VLSFO is overcharged in all four. MGO LS remained undervalued in all ports except of Houston (+ 7 USD).

Meantime, world oil indexes demonstrated multidirectional changes on Jan.18.

Brent for March settlement decreased by $0.35 to $54.75 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for February fell by $0.31 to $52.05 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.70 to WTI. Gasoil for February delivery added $1.50.

Today oil indexes increase amid rising oil demand in China.

China’s refinery output rose 3% to a new record in 2020. The data also showed that industrial production grew 7.3% year-on-year in December. GDP rose 6.5% year-on-year in the fourth quarter but grew 2.6% quarter-on-quarter. It also indicated that China was also the only major economy to avoid a contraction in 2020, with many nations still struggling to contain COVID-19 outbreaks. The ever-growing number of COVID-19 cases globally and the ensuing restrictive measures, including lockdowns, is dampening fuel demand and capping the black liquid’s prices.

The market is also waiting for U.S. President-elect Biden’s inauguration speech on Wednesday for details on the country’s $1.9 trillion aid package

We expect bunker prices may change irregularly today: 1-3 USD down for IFO and 1-3 USD up for MGO.