Home World MABUX: Bunker market this morning, Jan 20, 2021

MABUX: Bunker market this morning, Jan 20, 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 in the main world hubs) rose slightly on Jan.19:

    380 HSFO – USD/MT – 362.96 (+0.07)

    VLSFO – USD/MT – 459.00 (+1.00)

    MGO – USD/MT – 514.81 (+0.68)

    As of January 19, a correlation of the MBP Index(Market Bunker Prices) vs the DBP Index (MABUX Digital Bunker Prices) in the four global largest hubs showed that 380 HSFO fuel remained undervalued in two ports: Rotterdam and Singapore (by $ 15 and $ 10, respectively). At the same time, the DBP Index showed a slight overcharging of this type of fuel in Fujairah and Houston (plus $ 4 and $ 12). According to the DBP Index, VLSFO was again overvalued in all selected ports ranging from $ 7 (Singapore) up to $ 30 (Houston). MGO LS, by contrast, remained undervalued in all ports ranging from $ 17 (Fujairah) to $ 35 (Singapore), with the exception of Houston (plus $ 12).

    World oil indexes rose on Jan.19 as optimism that U.S. government stimulus will eventually lift global economic growth and oil demand trumped concerns that renewed COVID-19 pandemic lockdowns globally are cooling fuel consumption.

    Brent for March settlement rose by $1.15 to $55.90 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for February delivery increased by $0.93 to $52.98 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.92 to WTI. Gasoil for February delivery gained $5.75 – $459.25.

    Today morning oil indexes continue upward evolution.

    U.S. President-elect Joe Biden’s Treasury Secretary nominee Janet Yellen urged lawmakers on Tuesday to “act big” on pandemic relief spending, reinforcing hopes of massive spending to boost growth.

    As per International Energy Agency (IEA), border closures, social distancing measures and shutdowns will continue to constrain fuel demand until vaccines are more widely distributed, most likely only by the second half of the year. This recovery mainly reflects the impact of fiscal and monetary support packages as well as the effectiveness of steps to resolve the pandemic. Noting that an improvement to global oil demand went into reverse in December, IEA lowered its forecast for the first quarter by 580,000 barrels per day (bpd) and its outlook for 2021 by 300,000 bpd.

    We expect IFO bunker prices may rise by 4-7 USD today while MGO prices may gain 3-5 USD.