MABUX: Bunker market this morning, Feb.23, 2021
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) did not have any firm trend and changed irregular on Feb.22:
380 HSFO – USD/MT – 404.46 (-0.66)
VLSFO – USD/MT – 510.13 (+2.57)
MGO – USD/MT – 575.04 (+1.98)
As of February 22, a correlation of MBP Index (Market Bunker Prices) vs DBP Index (MABUX Digital Benchmark (Digital Bunker Prices)) in four largest global hubs showed 380 HSFO fuel segment be overcharged at the Port of Houston (plus $ 5), while in all other ports HSFO 380 remain undervalued ranging from minus $ 9 (Fujairah) to minus $ 23 (Rotterdam). DBP Index also registered VLSFO fuel grade, in contrast, be slightly overcharged in all selected ports in the range from plus $ 3 (Singapore) to plus $ 33 (Houston). Meantime, according to DBP index, the undercharge of MGO LS fuel was recorded in three selected ports in the range from minus $ 19 (Fujairah) to minus $ 40 (Singapore). The exception was Houston, where MGO LS was overpriced by $ 10.
World oil indexes rose on Feb.22, boosted by the expected slow return of U.S. crude output after last week’s deep freeze in Texas shut in production.
Brent for April settlement rose by $2.33 to $65.24 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April delivery increased by $2.46 to $61.70 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.54 to WTI. Gasoil for March delivery gained $3.00 – $526.00.
Today morning oil indexes continue firm upward evolution.
Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production in the U.S. along with 21 billion cubic feet of natural gas output. Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected as frozen pipes and power supply interruptions slow their recovery.
OPEC+ oil producers are set to meet on March 4. It is expected the group to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.
We expect bunker prices have firm upward trend today: IFO may rise by 10-15 USD, MGO LS – by 3-10 USD.