MABUX: Bunker market this morning, Jan 15, 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 January 14:

380 HSFO: USD/MT 367.25 (+0.32)
VLSFO: USD/MT 461.00 (+2.00)
MGO: USD/MT 515.58 (+3.16)

Correlation between the Market Bunker Price Index (BPI) vs MABUX Digital Bunker Price Index (DBP) in four major hubs on Jan.14 showed undercharging of 380 HSFO bunker grades in Singapore (-7 USD) and Rotterdam (-2 USD) and overcharging in Fujairah (+1 USD) and Houston (+8 USD). At the same time, VLSFO is overcharged in all four. MGO LS remained undervalued in all ports except of Houston (+ 6 USD).

Meantime, world oil indexes demonstrated multidirectional changes on Jan.14.

Brent for March settlement increased by $0.36 to $56.42 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for February rose by $0.66 to $53.57 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.85 to WTI. Gasoil for February delivery lost $0.75.

Today oil indexes are mixed as strong import data from China ran into concerns about Chinese cities in lockdown due to coronavirus outbreaks.

Crude imports into China were up 7.3% in 2020, with record arrivals in two out of four quarters as refineries increased runs and low prices prompted stockpiling. But China reported the highest number of daily COVID-19 cases in more than 10 months on Jan.15, capping a week that has resulted in more than 28 million people under lockdown and the country’s first death from the coronavirus in eight months. At the same time, in USA, President-elect Joe Biden’s unveiling of the $1.9 trillion “American Rescue Plan” helped raise prospects of increased oil demand in the U.S., the world’s biggest crude consumer. The plan includes a wave of new spending, more direct payments to households, an expansion of jobless benefits and an enlargement of vaccinations and virus-testing programs.

We expect bunker prices may change irregularly today: 1-3 USD up for IFO and plus/ minus 1-3 USD for MGO.