MABUX: Bunker market this morning, Sep.04

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs) declined on Sep.03:

380 HSFO – USD/MT – 309.81 (-5.19)
VLSFO – USD/MT – 358.00 (-8.00)
MGO – USD/MT – 434.73 (-10.89)

Meantime, world oil indexes decreased on Sep.03 as U.S. unemployment data fed fears of a slow recovery for the economy and fuel demand.

Brent for November settlement decreased by $0.36 to $44.07 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for October fell by $0.14 to $41.37 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.70 to WTI. Gasoil for September delivery lost $20.75.

Today morning oil indexes continue to decline after reports that production in the Gulf of Mexico is moving closer to restarting following the halt caused by hurricane Laura.

The U.S. Bureau of Safety and Environmental Enforcement (BSEE) on Sep.03 reported that all dynamically positioned rigs have returned to their working locations in the Gulf of Mexico but production has not yet restarted in 16% of rigs. According the EIA, due to shutdowns ahead of Hurricane Laura, U.S. refinery utilization rates fell by 5.3 percentage points to 76.7% of total capacity.

The U.S. Energy Information Administration (EIA) reported that U.S. crude oil inventories fell by 9.4 million barrels last week, much larger than the expect fall of 1.2 million barrels. Some warn that upcoming refinery maintenance and the end of the summer driving season could limit crude demand. EIA data showed total U.S. demand for crude and products running some 3 million barrels a day below their levels of a year ago.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated six entities as providers of logistical support for the sale of Iranian crude to international markets. Washington also targeted five companies and three individuals sanctioned for allegedly “engaging in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran.”

The data from Refinitiv Eikon also put some pressure to oil indexes. It is forecasted, that oil imports by China could fall in September after a large boost in inventories over the past five months. Independent Chinese refiners, who had bought on the world market the record volumes in July, scaled down their import purchases in August by 10% to an average of 4.22 million barrels a day. In Europe, meanwhile, the purchasing manager’s index for the euro zone declined as attempts to allow a summer tourist season led to a wave of Covid-19 infections, especially in Spain and France.

The Labor Department data showed the number of Americans filing new claims for unemployment reached a seasonally adjusted 881,000 for the latest week. Continuing claims remained high, with millions out of work.

We expect bunker prices may decrease today: 1-3 USD down for IFO and 15-20 USD down for MGO.
Source: MABUX

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