MABUX: Bunker market this morning, Feb 10, 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 Gasoil) in the main world hubs) increased on February 09:

380 HSFO: USD/MT – 384.92 (+3.63)
VLSFO: USD/MT – 492.37 (+6.66)
MGO: USD/MT – 547.20 (+7.88)

Correlation between the Market Bunker Price Index (MBP) vs MABUX Digital Bunker Price Index (DBP) in four major hubs on Feb.09 showed undercharging of 380 HSFO bunker grades in all ports ranging from minus 10 USD (Fujairah) to minus 12USD (Houston). VLSFO is overcharged in all 4 hubs in a range of 3USD (Houston) – 17USD (Rotterdam). MGO LS is undervalued in all four major hubs ranging from minus 6USD (Houston) to minus 29USD (Singapore).

Meantime, world oil indexes increased on Feb.09 as the U.S. government predicted a slow return to pre-pandemic levels of production for the domestic industry, while the global spot market continued to tighten partly due to export problems in Libya.

Brent for April settlement increased by $0.53 to $61.09 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March rose by $0.39 to $58.39 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.73 to WTI. Gasoil for February delivery added $2.75.

Today oil indexes are mixed.

Crude inventories fell by 3.5 million barrels in the week to Feb. 5 to about 474.1 million barrels, data from the American Petroleum Institute showed on Tuesday. It was forecasted an increase of 985,000 barrels. Crude oil stocks at the Cushing, Oklahoma, delivery point dropped by 1.4 million barrels. Still, inventories of gasoline rose, gaining by 4.8 million barrels, compared with forecasts for a build of 1.8 million barrels. Official Energy Information Administration (EIA) data is due later on Wednesday.

The market is tightening as Asian demand picks up and as Libya continues to experience export disruptions due to a strike by armed guards at the port of Hariga, who claim not to have been paid. The country’s exports have fallen by nearly 200,000 barrels a day from their recent peak.

We expect bunker prices may demonstrate slight upward changes today: 1-3 USD up for 380 HSFO, 1-3 USD up for MGO.


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