MABUX: Bunker market this morning, Feb.25, 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.24:
380 HSFO – USD/MT – 412.07 (-0.62)
VLSFO – USD/MT – 518.44 (-1.77)
MGO – USD/MT – 580.64 (+1.46)
As of February 24, 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 be overvalued in three selected ports ranging from minus $ 18 in Fujairah to minus $ 24 in Singapore. The exception was Houston, where 380 HSFO was overcharged by $ 6. DBP Index also recorded the first undercharge of VLSFO fuel at the port of Singapore (minus $ 2). In all other ports, VLSFO remained overvalued in the range from plus $ 2 (Rotterdam) to plus $ 18 (Houston). MGO LS, according to the DBP index, was underpriced in three ports ranging from minus $ 19 (Fujairah) to minus $ 36 (Singapore). The exception is still Houston, where the MGO LS was overpriced by $ 6.
World oil indexes rose on Feb.24 amid continued outages in the United States and a weaker dollar, but a surprise build in U.S. inventories last week capped gains.
Brent for April settlement rose by $1.67 to $67.04 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for April delivery increased by $1.55 to $63.22 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $3.82 to WTI. Gasoil for March delivery gained $9.50 – $541.50.
Today morning oil indexes continue moderate upward evolution.
Fuel indexes have jumped due to the U.S. supply disruption and supply discipline by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, led by an extra 1 million bpd cut by Saudi Arabia. Traffic at the Houston ship channel was slowly coming back to normal, but terminals were still facing several issues due to last week’s freezing weather in Texas.
The dollar index against a basket of six major currencies traded near a 6-week low on Feb.24. As crude is priced in dollars, a weaker dollar makes buying the commodity cheaper for holders of other currencies.
The Energy Information Administration reported a crude oil inventory build of 1.3 million barrels for the week to February 19. The build was much lower than the one the API had estimated a day earlier. At 463.0 million barrels, U.S. crude oil inventories are about 0% below the five year average for this time of year.
We expect bunker prices have firm upward trend today: IFO may rise by 10-15 USD, MGO LS – by 3-10 USD.