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MABUX: Bunker market this morning, Feb.12, 2021

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO Gasoil) in the main world hubs) slightly increased on Feb.11:

380 HSFO – USD/MT – 386.92 (+0.15)
VLSFO – USD/MT – 499.64 (+4.24)
MGO – USD/MT – 549.21 (+1.22)

Correlation between the Market Bunker Price Index (MBP) vs MABUX Digital Bunker Price Index (DBP) in four major hubs on Feb.11 showed undercharging of 380 HSFO bunker grades in all ports ranging from minus 14 USD (Houston) to minus 22 USD (Rotterdam). VLSFO is overcharged in all 4 hubs in a range of 3USD (Houston) – 16USD (Fujairah). MGO LS is undervalued in all four major hubs ranging from minus 3USD (Houston) to minus 30USD (Singapore).

Meantime, world oil indexes demonstrated slight irregular changes on Feb.11.

Brent for April settlement decreased by $0.33 to $61.14 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for March fell by $0.44 to $58.24 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.90 to WTI. Gasoil for February delivery added $1.50.

Today oil indexes decline after OPEC cut its demand forecast and the International Energy Agency said the market was still over-supplied.

According to the Organization of the Petroleum Exporting Countries (OPEC) oil demand around the world in 2021 will recover more slowly than earlier thought. Previously, the International Energy Agency (IEA) said oil supply was still outstripping demand globally, although COVID-19 vaccines are expected to help demand recover. The IEA shaved 200,000 barrels a day from its January estimate to an average of 96.4 million barrels a day and said that “the forecasts for economic and oil demand growth are highly dependent on progress in distributing and administering vaccines, and the easing of travel restrictions in the world’s major economies.”

At the same time, Germany, the continent’s largest economy, decided to extend most of its lockdown measures until March after a meeting of state and federal governments this week, while the U.K. is set to extinguish what remains of inbound international travel with a highly restrictive quarantine for new arrivals.

We expect bunker prices may demonstrate slight irregular changes today: 1-3 USD up for 380 HSFO, plus/ minus 1-3 USD for MGO.
Source: MABUX