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MABUX: Bunker market this morning, Dec.13

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) declined on Dec.12:

380 HSFO – USD/MT – 352.71(-3.75)
180 HSFO – USD/MT – 394.23(-3.10)
MGO – USD/MT – 666.75(-2.49)

Meantime, world oil indexes increased on Dec.12 after U.S. President Donald Trump said that the United States was very close to some sort of a deal with China and as the U.S. has reportedly offered China to roll back some existing tariffs and cancel a new round of tariffs set to take effect on December 15.

Brent for February settlement increased by $0.48 to $64.20 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for January rose by 0.42 to $59.18 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $5.02 to WTI. Gasoil for December delivery added $8.00.

Today morning oil indexes continue to rise as the United States and China moved closer to a resolution to the 18-month trade war.

The U.S. has recently offered to Beijing to reduce some of the current tariffs by as much as 50 percent, if China pledges to buy big volumes of U.S. agricultural products, protect U.S. intellectual property rights, and allow more access to its financial services sector. Otherwise, there would be no ‘phase one’ deal. If the U.S. and China don’t reach some sort of agreement by midnight Dec.15, the U.S. could slap tariffs on another US$156 billion worth of goods that America imports from China, mostly consumer products, including laptops, mobile phones, toys, and clothing.

At the same time, U.S. trade negotiators have offered to cancel a new round of tariffs on imported Chinese goods as part of an effort to cement a phase one deal to de-escalate the trade conflict between the two powers. But the White House didn’t release any official statement, raising questions about whether the terms had been agreed by both sides.

International Energy Agency (IEA) said global oil inventories could rise sharply through March despite an agreement by OPEC and its allies to deepen output cuts, as well as lower expected production by the United States and other non-OPEC nations. OPEC, in its own monthly report on Dec.11, said it expected a small oil market deficit in the next year, suggesting the market is tighter than previously thought.

The IEA said OPEC pumped 29.66 million b/d of crude during November, down 300,000 b/d from October, and that rate would fall to around 29.3 million b/d in January based on full compliance and steady output from Libya, Iran and Venezuela. That is still 700,000 b/d above the first-quarter call on OPEC crude and 1 million b/d above the second-quarter call, the IEA added.

We expect bunker prices to rise today: 1-3 USD up for IFO, 6-8 USD up for MGO
Source: MABUX

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