MABUX: Bunker market this morning, Jan.22, 2021
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned into slight downward movement on Jan.21:
380 HSFO – USD/MT – 365.63 (-0.72)
VLSFO – USD/MT – 460.00 (-2.00)
MGO – USD/MT – 515.42 (-3.32)
As of January 21, a correlation of the MBP Index (Market Bunker Prices) vs the DBP Index (digital benchmark MABUX (Digital Bunker Prices) in the four global largest hubs showed that already in three selected ports: Rotterdam (minus $ 16), Singapore (minus $ 14) and Fujairah (minus $ 4), the 380 HSFO was underestimated. The DBP Index still recorded a slight overestimation of this type of fuel in Houston (plus $ 6). According to the DBP Index, VLSFO was again overvalued in all selected ports ranging from $ 6 (Rotterdam) up to $ 22 (Houston). MGO LS, by contrast, remained undervalued at all ports ranging from minus $ 23 (Fujairah) to minus $ 35 (Singapore), with the exception of Houston (plus $ 11).
World oil indexes changed sideways on Jan.21 after industry data showed a surprise increase in U.S. crude inventories that revived pandemic-related demand concerns.
Brent for March settlement rose by $0.02 to $56.10 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March delivery decreased by $0.18 to $53.13 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.97 to WTI. Gasoil for February delivery lost $4.50 – $455.00.
Today morning oil indexes continue sliding down.
As per the American Petroleum Institute (API) estimation, U.S. crude oil inventories rose 2.6 million barrels in the week to Jan. 15, compared with forecasts for a 1.2 million barrel fall. Official Energy Information Administration (EIA) inventory data is due on Friday.
Besides, the API will support U.S. federal regulations for oil and gas industry-generated methane. This is in stark contrast to its previous position against federally regulating the greenhouse gas.
Rising COVID-19 cases in China also weighed on prices. Chinese government plans to impose strict COVID testing requirements during the Lunar New Year holiday season, when tens of millions of people are expected to travel, as it battles the worst wave of new infections since March 2020. The commercial hub of Shanghai reported its first locally transmitted cases in two months on Thursday.
We do not expect any significant changes in bunker prices today: both IFO and MGO prices may change irregular in a range of plus-minus 1-4 USD.