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) demonstrated slight downward trend on Mar.02:
380 HSFO: USD/MT – 411.49 (-4.09)
VLSFO: USD/MT – 514.35 (-6.03)
MGO: USD/MT – 584.74 (-2.24)
As of March 02, 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 fuel was undervalued in three selected ports ranging from minus $ 4 in Fujairah to minus $ 21 in Rotterdam. The undercharge levels of 380 HSFO have fluctuated between minus $ 5 and minus $ 25 last 5 days, with the exception of Houston, where the HSFO 380 was overvalued by $ 14. The Port of Rotterdam was the only port where DBP Index recorded an underpricing of VLSFO fuel by minus $ 4, while at all other ports VLSFO was overestimated in the range of plus $ 3 (Singapore) to plus $ 30 (Houston). MGO LS, according to DBP Index, remains undercharged at three selected ports ranging from minus $ 20 (Fujairah) to minus $ 42 (Rotterdam and Singapore), with the exception of Houston, where the MGO LS was overcharged by $ 29. The rise of overcharge levels by average 45-55% has been registered recently for all bunker grades at the Port of Houston, which is likely the result of a slow recovery of supply/demand balance on the local market after the extremely cold weather two weeks ago.
World oil indexes fell on Mar.02 as expectations that top producers would agree to raise oil supply in a meeting this week weighed on sentiment.
Brent for May settlement slipped by $0.99 to $62.70 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April delivery decreased by $0.89 to $59.75 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.95 to WTI. Gasoil for March delivery lost $9.00 – $517.75.
Today morning oil indexes do not have any firm trend so far.
Expectations that the OPEC+ would boost oil output from April pushed prices lower. The group meets on Thursday and could discuss allowing as much as 1.5 million barrels per day (bpd) of crude back into the market. OPEC oil output fell in February as a voluntary cut by Saudi Arabia added to reductions agreed to under the previous OPEC+ pact, ending a run of seven consecutive monthly increases.
China’s factory activity growth slipped to a nine-month low in February, which may curtail Chinese crude demand and pressure oil prices while oil buying from the world’s top importer has already eased lately.
The American Petroleum Institute (API) reported on Mar.02 a build in crude oil inventories of 7.356 million barrels for the week ending February 26. Forecasts had predicted an inventory draw of 928,000 barrels for the week. In the previous week, the API reported a build in oil inventories of 1.026-million barrels after analysts had predicted a draw of 5.190-million barrels.
We expect global bunker prices to fall today: IFO may drop by 3-6 USD, MGO LS – by 3-9 USD.