MABUX: Bunker market this morning, Jan 18, 2021

The Bunker Review was contributed by Marine Bunker Exchange (MABUX)

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued slight upward evolution on January 15:

380 HSFO: USD/MT 367.69 (+0.44)
VLSFO: USD/MT 461.00 (0.00)
MGO: USD/MT 516.55 (+0.97)

As of January 15, a correlation of the MBP Index (Market Bunker Prices) with the DBP Index (MABUX Digital Bunker Prices) in the four global largest hubs showed that in two ports: Rotterdam and Fujairah, according to the DBP Index, all bunker fuels were moderately undervalued (380 HSFO – minus $ 8 and minus $ 1, respectively; VLSFO – $ 0 and minus $ 5, and MGO LS – minus $ 23 for both ports). DBP Index also registered an overvalue of 380 HSFO and MGO LS in Singapore: minus $ 9 and minus $ 32, respectively. On Jan.l15 there was the only port – Houston – where, according to DBP Index, an overcharging was registered for all grades of fuel: 380 HSFO – plus $ 6, VLSF – plus $ 23 and MGO LS – plus $ 4.

World oil indexes fell on Jan.15 as concerns about Chinese cities in lockdown due to coronavirus outbreaks tempered a rally driven by U.S. plans for a large stimulus package.

Brent for March settlement fell by $1.32 to $55.10 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for February delivery decreased by $1.21 to $52.36 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of $2.74 to WTI. Gasoil for February delivery lost $7.50 – $452.00.

Today morning oil indexes do not have any firm trend so far.

China locked down more than 22 million citizens amid a new wave of Covid-19, on top of announcements that there will be extended curfews in France that will last 12 hours of the day, started from Jan.16. Europe’s oil demand has failed to start the year with any sort of growth, slumping 1.76 million barrels per day so far this month, as road use in the UK, France, Italy, and Spain fell 37% last week compared with pre-virus levels. Bolstering oil prices is the hope that the incoming Biden administration will quickly push through yet another round of stimulus payments in the amount of $1400 per person. This will add onto the current $600 payments that are being distributed now.

We expect IFO and MGO bunker prices may slide downwards today by 5-8 USD.