Bunker prices likely to stay volatile next week
The Bunker Review is contributed by Marine Bunker Exchange
Brent crude oil rose well above $55 on Thursday afternoon recovering from part of the previous session’s slide after China took steps to pour liquidity into the world’s second-biggest economy, although traders and analysts said oil’s outlook looked weak.
At present we have experienced the most volatile market in almost six years is forecast to continue seesawing as a global glut that drove prices lower last year persists for a least the first half of 2015.
Crude snapped a four day winning streak on Wednesday, when the U.S. government said crude inventories increased by 6.3 million barrels, rising for a fourth consecutive week to hit a record high.
The market gained support on Thursday from optimism that steps by China’s central bank to pour in fresh liquidity would spur demand for energy in the second largest oil consumer after the U.S. Thursday afternoon the Brent was trading at $55.60 a barrel and the WTI at $49.60.
The U.S. is pumping crude at the fastest rate in more than three decades, driven by new supply from shale formations in Texas to North Dakota. OPEC has resisted calls to cut its production quota, choosing instead to let prices fall to a level that slows output in nations outside the group.
Brent and WTI crude oil prices dropped almost 50 percent in 2014 as more production from fields in the U.S. and Russia contributed to a global glut in the crude market. Supply will exceed demand by 2 million barrels a day in the first half of 2015, according to
Iranian Oil Minister Bijan Namdar Zanganeh.
We expect bunker prices will remain volatile next week.
* MGO LS
All prices stated in USD / Mton
All time high Brent = $147.50 (July 11, 2008)
All time high Light crude (WTI) = $147.27 (July 11, 2008)
