MABUX: Bunker market this morning, Mar 04, 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) demonstrated downward changes on March 03:

380 HSFO: USD/MT – 407.98 (-3.13)
VLSFO: USD/MT – 510.94 (-2.31)
MGO: USD/MT – 579.31 (-3.87)

Correlation between the Market Bunker Price Index (MBP) vs MABUX Digital Bunker Price Index (DBP) in four major hubs on March 03 demonstrated remained undercharging of 380 HSFO bunker grades in Rotterdam (-13USD), Singapore (-18USD), Fujairah (-3USD). In Houston this kind of fuel is overcharged (+14USD) as well as VLSFO (+27USD) and MGO LS (+25USD). VLSFO is overcharged in all selected ports in a range from 1USD (Singapore) to 27USD (Houston). MGO LS is undervalued in all hubs (except of Houston) in a range from minus 16USD (Fujairah) to minus 43USD (Singapore).

Meantime, world oil indexes increased on March 03.

Brent for May settlement increased by $1.37 to $64.07 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April rose by $1.53 to $61.28 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.79 to WTI. Gasoil for March delivery added $2.25.

Today oil indexes continue to rise as the possibility that OPEC+ producers might decide against increasing output at a key meeting later in the day lent support.

The Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, are considering rolling over production cuts into April instead of raising output, as a recovery in oil demand remains fragile due to the coronavirus crisis. It was expected OPEC+ to ease production cuts by around 500,000 barrels per day (bpd) from April. OPEC+ is to make the decision on meeting today.

U.S. crude oil stockpiles surged by a record of more than 21 million barrels last week as refining plunged to an all-time low due to the Texas freeze that knocked out power for millions. With refiners unable to process crude, gasoline and distillate inventories also dropped dramatically, especially in the Gulf Coast region where their declines set records. It was forecasted a 928,000-barrel draw, while a 1.285-million-barrel build was reported during the previous week. An unprecedented cold snap in Texas and surrounding areas saw refining levels fall to a record low as the weather cut power for millions of residents.

We expect bunker prices can rise today. Prices for 380 HSFO may increase by 7-9 USD, prices for MGO may rise by 3-5 USD.



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