MABUX: Bunker market this morning, Mar 12, 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 March 11:

380 HSFO: USD/MT – 431.14 (+3.12)
VLSFO: USD/MT – 535.43 (+3.88)
MGO: USD/MT – 601.79 (+4.46)

Correlation between the Market Bunker Price Index (MBP) vs MABUX Digital Bunker Price Index (DBP) in four major hubs on March 11 demonstrated remained undercharging of 380 HSFO bunker grades in all selected ports in a range from minus 5 USD (Fujairah) to minus 25USD (Rotterdam). In Houston MBP index 100% correlates to DBP index. VLSFO is undercharged in all ports except of Houston in a range from minus 3 (Fujairah) to minus 19USD (Singapore). In Houston this kind of fuel is overcharged by 22 USD. MGO LS is undervalued in Rotterdam (-23USD) and Singapore (-28USD) and overcharged in Fujairah (+22USD) and Houston (+15USD).

Meantime, world oil indexes increased on March 11 amid signs of an improving economic outlook, a ramped up vaccination program and a sharp decline in U.S. gasoline stocks.

Brent for May settlement increased by $1.73 to $69.63 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April fell by $1.58 to $66.02 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.61 to WTI. Gasoil for April delivery added $18.00.

Today oil indexes slide down.

The House of Representatives passed the Biden administration’s $1.9 trillion COVID relief bill on March 10. The direct payments from the plan will start going out this month through direct deposits, helping individuals and small businesses that were hurt badly by the restrictions required to combat the COVID-19 pandemic. Adding to the positive impetus is a ramped-up vaccination program, which has resulted in almost a quarter of the adult population in the U.S. having had at least one vaccine shot.

According to Energy Information Administration (EIA) data domestic gasoline supplies slid last week to the lowest in about four months, as the winter storm in Texas disrupted refining output, while demand rose to the highest since November.

OPEC said on March 11, that a recovery in oil demand will be focused on the second half of the year.

We expect bunker prices can demonstrate upward changes today. Prices for 380 HSFO may increase by 7-10 USD, prices for MGO may add 13-18 USD.



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