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) continued firm upward evolution on February 16:

380 HSFO: USD/MT – 403.06 (+3.94)
VLSFO: USD/MT – 504.80 (+3.51)
MGO: USD/MT – 560.90 (+4.26)

As of February 16, a correlation of MBP Index (Market Bunker Prices) vs DBP Index (MABUX Digital Benchmark (Digital Bunker Prices)) in four largest global hubs showed that 380 HSFO and MGO LS fuels remained underpriced in all selected ports. According to the DBP Index, the 380 HSFO was undervalued from minus $ 13 (Singapore) to minus $ 18 (Rotterdam and Houston), MGO LS – from minus $ 10 (Houston) to minus $ 33 (Singapore and Fujairah). VLSFO, on the contrary, remained overcharged at all ports ranging from plus $ 4 (Houston) to plus $ 13 (Singapore).

World oil indexes changed irregular on February 16 amid a cold snap that shut wells in the biggest U.S. producing state Texas.

Brent for April settlement rose by $0.05 to $63.35 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March delivery decreased by $0.09 to $60.05 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.30 to WTI. Gasoil for March delivery lost $3.00 – $515.25.

Today morning oil indexes demonstrate slight upward evolution again.

The global rollout of coronavirus vaccinations, fuelling expectations of a recovery in the global economy and oil demand, has kept prices buoyant.

Cold weather in the United States halted operations at Texas oil wells and refineries and forced restrictions on natural gas and crude pipeline operators. Texas produces about 4.6 million barrels per day of oil and is home to 31 refineries, the most of any U.S. state and including some of the country’s largest.

The U.S. oil inventory data from the API industry association and Energy Information Administration (EIA) will be released this week on February 17 and February 18, respectively, each delayed by a day after U.S. markets were closed on February 15.

We expect bunker prices not have any firm trend today and change irregular: IFO – in a range of plus-minus 0-2 USD, MGO – in a range of plus-minus 1-3 USD.