MABUX – Bunker Market Trending Upwards

Global oil prices started the week by spiking around 3 percent on reports that Washington was preparing to announce that all buyers of Iranian oil will have to end those imports soon or face U.S. sanctions. Reuters cited a Washington Post article and sources stating that the U.S. will announce the termination of Iranian oil import sanctions waivers on Monday.

The waivers move, granted by Trump in November, shocked global oil markets and created a supply overhang that the OPEC+ group of producers is now working to eliminate. Countries that received 180-day waivers last fall include Japan, China, India, South Korea, Taiwan, Italy, Greece, and Turkey – all of Iran’s biggest oil clients.

Oil prices spike early Monday

Prices for global oil benchmark, London-traded Brent crude rose as much as 3.2 percent in early Monday trading, to $74.30/barrel. It’s the highest price point since November 1. U.S.-benchmark, NYMEX-traded West Texas Intermediate (WTI) crude futures spiked as much as 2.9 percent in early Monday trading, reaching $65.87/barrel – the highest point since October 30 and just before Trump announced sanctions waivers for Iranian oil.

The sanctions waivers put in place by Trump particularly caught U.S-ally, OPEC de facto leader and the world’s largest oil exporter Saudi Arabia by surprise as well. As discussed in my April 20 post, since Trump didn’t consult with Riyadh before granting Iranian oil waivers, it resulted in an uptick in global oil supply and downward pressure on prices, costing the Saudis and other major producers lost revenue. Since that time, Saudi Arabia has largely been immune to Trump’s tweets calling for the Kingdom and OPEC to pump more oil to reduce oil prices which are at five-month highs.

Oil races to near six-month highs on Iran sanctions, stocks rise

World oil prices jumped to near 6-month highs on Tuesday as the United States tightened sanctions on Iran, sending shares of energy companies higher and boosting currencies of several major crude producers.

Brent crude oil futures rose 0.7 percent to $74.57 per barrel by 0630 GMT, their highest since November, after Washington said it was ending all sanctions waivers for countries buying Iranian oil.[O/R]

U.S. light crude rose 0.8 percent to $66.10.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.1 percent, as gains in oil and gas producers offset losses in airlines and other transport sectors facing higher fuel costs. Japan’s Nikkei closed up 0.2 percent.

European markets looked set to track Asia’s rise, with London’s FTSE futures up 0.4 percent and German DAX futures higher by 0.2 percent.

The United States on Monday demanded all buyers of Iranian oil stop purchases by May 1 or face sanctions, a move to choke off Tehran’s oil revenues.

The White House said it was working with top oil exporters Saudi Arabia and the United Arab Emirates to ensure the market was “adequately supplied,” but traders had already been worried about tight supplies.

Oil Future close at 19th April:
Brent: $74.04(+2.07)pbr
WTI: $74.04(+2.07)pbr
MGO: $648.75(+13.25)/mton
NY Harbor Ulsd: $647.74(+10.19)/mton

Oil Future trading at GMT: 09.04; Brent:+44 cents, WTI:+50 cents
General tendency is upward.

Expect bunker prices to rise 12-13 usd/mton for Fuel Oil, MGO and NY Harbor Ulsd.
Source: Marine Bunker Exchange