MABUX: Bunker Market this morning Sep. 23
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 Sep. 20
380 HSFO – USD/MT 451.44 (-2.38)
180 HSFO – USD/MT 488.38 (-0.20)
MGO – USD/MT 682.49 (+2.03)
Meantime, world oil indexes also demonstrated irregular changes on Sept.20 amid the uncertainty over the United States’ next move on Iran after the Saudi attack.
Brent for November settlement decreased by $0.12 to $64.28 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for November delivery declined by $0.10 to $58.09 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 6.19 to WTI. Gasoil for October delivery increased by 1.50.
Today indexes rise amid concerns about oil supply disruptions from Saudi Arabia and elevated tensions in Middle East.
Washington suspects Iran as the perpetrator for the Sept 14 attack which initially disrupted 5.7 million barrels per day of Saudi production – or 5% of world global output. Yemen-based Houthi rebels, however, have claimed responsibility for the attack and Tehran any role in it. So far, the U.S. has blamed Iran directly for the attacks, but Trump’s only concrete reaction has been to impose further sanctions on the country. Tehran denies any involvement.
Tensions in the Middle East have escalated after the attack. The Pentagon has ordered additional troops to be deployed in the Gulf region to strengthen Saudi Arabia’s air and missile defenses following an attack on Saudi oil facilities. U.S. Secretary of State Mike Pompeo said on Sunday that the troops are for “deterrence and defense” and Washington aimed to avoid war with Iran.
Saudi state oil company Aramco repeated its assurances that it will have 11 million barrels a day of capacity back online by the end of the month, well above its current actual output level. Much is riding on the kingdom’s ability to recover from the initial attack and protect itself from future ones. Many are still skeptical about fast recovery of production. The Wall Street Journal reported that full repair from the attack will take more than the 10 weeks Saudi previously promised.
State-owned Saudi Aramco has switched crude grades and delayed crude and oil product deliveries to customers by days after the attack severely reduced its light oil production and led to output cuts at its refineries.
A Saudi-led coalition on Friday launched a military operation north of Yemen’s port city of Hodeidah while the United States worked with Middle East and European nations to build a coalition to deter Iranian threats.
In the United States, meanwhile, flooding from Tropical Storm Imelda forced a major refinery to cut production, while a key oil pipeline, terminals and a ship channel in Texas were shut during the weekend. Exxon Mobil Corp shut some units at its 369,024 barrel per day (bpd) Beaumont refinery while Valero Energy Corp reduced production at its 335,000 bpd Port Arthur refinery. For now the impact of Imelda on refineries in Texas has eased as both companies restarted their crude processing units.
Oil indexes are also supported by statistics from the oil and gas service company Baker Hughes, a GE Company (BHGE). According to data, the number of active oil rigs in the United States for the week ending September 20 decreased by 14, to 719. The indicator became the lowest since May 2017.
Expect bunker prices to demonstrate slight irregular changes today: within plus/minus 1-3 USD.