Home / Shipping News / International Shipping News / MABUX: Bunker market this morning, July 24.

MABUX: Bunker market this morning, July 24.

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) demonstrated slight irregular changes on July 23:

380 HSFO – USD/MT – 421.76 (-2.00)
180 HSFO – USD/MT – 458.85 (-1.71)
MGO – USD/MT – 658.14 (+0.16)

Meantime, world oil indexes rose on Jul.23 as tensions mounted between the U.K. and Iran, increased fears of a disruption to oil supplies coming out of the Persian Gulf.

Brent for September settlement increased by $0.57 to $63.83 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for September delivery rose by $0.55 to $56.77 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $7.06 to WTI. Gasoil for August gained $0.25.

Today morning oil indexes continue to rise amid falling U.S. crude stockpiles.

According the American Petroleum Institute (API) U.S. crude stocks fell more than expected last week to July 19, declining by 11 million barrels to 449 million. That compared with expectations of a decrease of 4 million barrels. The Energy Information Administration to announce later in the day a sixth-straight weekly drawdown of crude. They expect a decline of 4.01 million barrels for the week ended July 19, after a total of more than 30 million drawn over five previous weeks.

U.S. Trade Representative Robert Lighthizer and a group of aides were traveling to Shanghai on July,22 for the first talks about the U.S.-China trade dispute since May. The talks, expected to last through Wednesday – July,24 but there will likely to be no result in a trade deal.
Nonetheless, the news pushed markets of all kinds higher even as Iran tried to strike a conciliatory note with incoming U.K. Prime Minister Boris Johnson over the tanker dispute between the two countries.

Geopolitical tensions have steadily risen in the Gulf in recent months, with U.S. sanctions against Iranian oil pushing Tehran into retaliation mode. On July,19 Tehran seized the British-flagged tanker Stena Impero in the Strait of Hormuz, a bottleneck through which one-fifth of world oil supply passes.

Iran’s move was in response to the detention of one of its own vessels off the Gibraltar Coast by U.K. authorities acting on the orders of British Prime Minister Theresa May, who will tender her resignation on Wednesday. She had defended her action by saying that the Iranian vessel was carrying prohibited oil cargoes meant for Syria.

At the same time, U.S. Secretary of State Mike Pompeo indicated on Monday that the U.S. wouldn’t respond to the incident, saying it was the U.K.’s responsibility to protect its own ships. The U.K. government responded by calling on other European states to put together a naval force capable of protecting vulnerable shipping.

Global oil consumption has stalled since the middle of 2018, making lower oil prices inevitable despite the best efforts of Saudi Arabia and its allies to reduce production

We expect bunker prices to demonstrate slight irregular changes today: 1-3 USD up for IFO, plus/minus 1-3 USD for MGO.
Source: MABUX

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping