MABUX: Bunker Market this morning June, 18
The Bunker Review was contributed by Marine Bunker Exchange
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) declined on June. 17
380 HSFO - USD/MT 383.89 (-4.00)
180 HSFO - USD/MT 426.06 (-4.79)
MGO - USD/MT 638.19 (-0.21)
Meantime, world oil indexes also demonstrated downward changes on June. 18 after report that Iran and Russia ended talks without deal on when the next OPEC+ meeting is to be held
Brent for August settlement decreased by $1.07 to $60.94 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate for July delivery fell by $0.58 to $51.93 a barrel on the New York Mercantile Exchange. The Brent benchmark traded at the premium of 9.01 to WTI. Gasoil for July delivery decreased by $6.00.
Today indexes continue to decline after more signs that global economic growth is being hit by U.S.-China trade tensions, although losses were limited amid tensions in the Middle East after tanker attacks last week.
The market is paying close attention to developments in Sino-U.S. trade talks. U.S. President Donald Trump and China's President Xi Jinping could meet at the G20 summit in Japan later this month to discuss trade-related issues. Trump has said he would meet Xi at the event, although China has not confirmed the meeting.
Saudi Energy Minister Khalid al-Falih indicated at the weekend that the June 25 OPEC meeting and the June 26 conference of OPEC+ was more or less off because Russia wasn’t agreeable to those dates. Meanwhile, Iran’s Oil Minister Bijan Namdar Zanganeh said he was willing to holds talks in July. The Saudis lead OPEC, but Iran is an important member being the world’s fourth-largest crude exporter. Russia is also a key OPEC ally, being the second-largest oil exporter after the United States. It was previously expected the meeting would be held in late June.
There doubts about whether OPEC and its allies will be able to meet soon and agree on new production cuts to offset surging supplies of crude in the U.S. and elsewhere.
At the same time last attacks on oil tankers in the Gulf of Oman supported crude prices.
U.S. crude stockpiles have grown by a net of some 33 million barrels over the past 12 weeks, crossing into the current peak driving season in the United States, when demand for gasoline should be at the year’s highs. U.S. oil output from seven major shale formations is expected to rise by about 70,000 barrels per day (bpd) in July to a record 8.52 million bpd, the U.S. Energy Information Administration said in its monthly drilling productivity report on Monday.
The largest change is forecast in the Permian Basin of Texas and New Mexico, where output is expected to climb by 55,000 bpd to a fresh peak at 4.23 million bpd in July.
China’s industrial output grew by just 5% in May, the slowest in more than 17 years, according to National Bureau of Statistics on June,17 that reinforced fears about the negative impact of the trade war. It was expected an industrial output expansion of 5.5%. The Empire State Manufacturing Index for the New York area unexpectedly suffered its biggest fall on record to its lowest level since October 2016.
We expect bunker prices to demonstrate downward changes today: 3-5 USD down for IFO, 4-6 USD down for MGO.