MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO Gasoil) in the main world hubs) declined on March19:

HSFO – USD/MT – 413.80 (-12.72)
VLSFO – USD/MT – 515.55 (-15.21)
MGO – USD/MT – 592.40 (-13.48)

Correlation between the Market Bunker Price Index (MBP) vs MABUX Digital Bunker Price Index (DBP) in four major hubs on March19 remained undercharging of 380 HSFO bunker grades in all selected ports, except of Houston, in a range from minus 4 USD (Rotterdam) to minus 17 USD (Singapore). VLSFO is undercharged in Singapore (-16USD) and overcharged in Rotterdam (+6USD), Fujairah (+34USD) and Houston (+27 USD). MGO LS is undervalued in all selected ports, except of Houston, in a range from minus 3 USD (Fujairah) to minus 46 USD (Rotterdam). According to DBP 380 HSFO and MGO LS are overvalued in Houston by +5USD and +27USD respectively.

Meantime, world oil indexes demonstrated irregular changes on March 19.

Brent for May settlement increased by $1.25 to $64.53 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April rose by $1.42 to $61.42 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.11 to WTI. Gasoil for April delivery lost $5.00.

Today oil indexes slide down as the prospect of more COVID-19 lockdowns in Europe increasing worries about fuel demand.

Germany plans to extend a lockdown to contain COVID-19 infections into a fifth month, according to a draft proposal, after new cases exceeded levels that may cause hospitals to be overstretched.

U.S. drillers are starting to take advantage of an earlier spike in prices on optimism about returning demand, adding the most rigs for extracting oil since January in the week through Friday. According to Baker Hughes Co the oil and gas drilling rig count, an early indicator of future production, rose by 9 – to 411 last week, the highest since April. The rig count has been rising over the past seven months and is up nearly 70% from a record low of 244 in August. The total count, however, is still 361 rigs, or 47%, below this time last year. The number of U.S. oil rigs rose by 9 to 318 last week, their highest since May, while gas rigs were unchanged at 92.

We expect bunker prices may demonstrate irregular changes today. Prices for 380 HSFO may increase by 5-8 USD, prices for MGO may change in a range of plus/minus 1-3 USD.

Source: www.mabux.com