MABUX: Bunker Market this morning June, 26
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) demonstrated irregular changes on June. 25
380 HSFO – USD/MT 405.70 (+1.06)
180 HSFO – USD/MT 445.57 (+1.75)
MGO – USD/MT 649.73 (-4.46)
Meantime, world oil indexes also demonstrated irregular changes on June. 26
Brent for August settlement increased by $0.19 to $65.05 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for August delivery decreased by $0.07 to $57.83 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 7.22 to WTI. Gasoil for July delivery increased by $9.25.
Today indexes rise U.S. crude stockpiles fell more than expected.
According to American Petroleum Institute (API), U.S. crude stockpiles fell by 7.5 million barrels last week to 474.5 million, compared with analyst expectations for a decline of 2.5 million barrels. Crude stocks at U.S. delivery hub Cushing, Oklahoma, fell by 1.3 million barrels.
The data came as market watched for any signs that tensions between the United States and Iran could escalate into military conflict. U.S. President Donald Trump threatened on June, 25 to obliterate parts of Iran if it attacked anything American, in a new war of words with Iran. Tehran has condemned a fresh round of U.S. sanctions as mentally retarded. Bilateral tensions between the two have spiked anew after Iran shot down a U.S. drone last week in the Gulf. Relations have been tense since Washington blamed attacks on oil tankers just outside the Gulf in May and June on Iran, while Tehran has repeatedly said it had no role in the incidents.
Conflict between Washington and Tehran has stoked fears that shipments passing through the Strait of Hormuz – the world’s busiest oil supply route – could be disrupted. At the same time, the head of national oil company Saudi Aramco said on June,25 the company can meet the oil needs of customers using its spare capacity.
Meanwhile there are sings, that U.S. isn’t looking to go to war with Iran, appeared in the market, Federal Reserve Chairman Jerome Powell warned the risks to the economy have increased and Trump administration officials signaled a trade deal at the Group of 20 summit this week is unlikely.
Trump’s tweets, speeches and actions over the past year have often disrupted the rally in oil more than fed it. But over the past week, his administration and Tehran have been adding to crude’s geopolitical premium with their tough talk.
Just before the sanctions he announced on Iran’s top leadership, Trump said he was prepared to negotiate with Tehran, without preconditions, in a bid to ease tensions building since he withdrew the U.S. a year ago from a global nuclear deal with the Islamic Republic and began pressuring it with economic sanctions.
Meanwhile, Kremlin spokesman Dmitry Peskov said on June, 25 , that Russian President Vladimir Putin will meet Saudi Crown Prince Mohammed Bin Salman at this week’s G20 summit. Although Peskov did not provide details, the two will be sure to discuss whether and how to extend the current production cut agreement between OPEC and other producers, of which Russia is by far the largest. Recent remarks from Russian Energy Minister Alexander Novak have suggested that Russia still needs to be convinced to follow through on the deal, not least because the oil price it needs to balance its budget is significantly lower than the price that Saudi Arabia needs. The meetings will be held July 1-2.
Expect bunker prices to demonstrate upward changes today: 1-3 USD up for IFO, 7-9 USD up for MGO.