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) fell slightly on January 29:
380 HSFO: USD/MT – 365.19 (-0.18)
VLSFO: USD/MT – 460.04 (-0.90)
MGO: USD/MT – 514.82 (-2.03)
As of January 29, comparison between MBP Index (Market Bunker Prices) and DBP Index (MABUX Digital Benchmark (Digital Bunker Prices) in four global largest hubs showed that in three of four selected ports 380 HSFO and MGO LS were still moderately underestimated. According to DBP Index, 380 HSFO fuel in Rotterdam, Singapore and Fujairah was undercharged in a range from minus $ 2 (Fujairah) to minus $ 14 (Rotterdam), and MGO LS fuel – in a range from minus $ 15 (Fujairah) to minus $ 25 (Singapore). At the same time, VLSFO fuel remained overvalued in all selected ports ranging from plus $ 8 (Rotterdam) to plus $ 27(Houston). Houston remains the only port of the top 4, where the overcharging is registered for all types of marine fuel.
World oil indexes changed irregular on Jan.29 as demand concerns caused by new coronavirus variants and slow vaccine rollouts offset a cut in Saudi Arabian oil supply and falling U.S. oil inventories.
Brent for March settlement rose by $0.35 to $55.88 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March delivery decreased by $0.14 to $52.20 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.68 to WTI. Gasoil for February delivery lost $1.00 – $450.25.
Today morning oil indexes have turned into slight upward evolution.
In response to the demand threat, Saudi Arabia has pledged additional output cuts of one million barrels per day in February and March, while most OPEC+ producers will hold production steady during new lockdowns.
However, market gains have been capped by worries about stalled vaccine rollouts and the spread of contagious new variants of the coronavirus. Europe’s fight to secure COVID-19 vaccine supplies intensified last week when the European Union warned drug companies such as AstraZeneca that it would use all legal means or even block exports to ensure shots are delivered as promised.
Baker Hughes reported the oil rig count in the United States increased by 6 last week. The EIA’s estimate for oil production in the United States fell for the first time in six weeks for the ending January 22, to 10.9 million barrels—still 2.0 million bpd off the all-time high reached last March.
We expect bunker prices may change insignificant and irregular today: IFO – by 0 – plus 2 USD, MGO – in a range of plus-minus 1-3 USD.
