MABUX: Bunker market review as of Feb. 28.
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) in the main world hubs) demonstrated slight upward changes on Mar. 04
380 HSFO - USD/MT 418.07 (+2.50)
180 HSFO - USD/MT 464.86 (+2.22)
MGO - USD/MT 646.36 (+1.86)
Last week oil prices settled down 3 percent lower.
Oil prices settled down about 2 percent on Friday, ending around 3 percent lower on the week as concerns over global demand growth after weak U.S. manufacturing data overshadowed OPEC-led supply cuts and sanctions on Venezuela and Iran.
After strengthening early in the session to over a three-month high, U.S. crude futures turned sharply lower on demand worries. The ISM manufacturing activity index in February sank to the lowest since November 2016, and was below expectations.
Despite hitting their highest levels since mid-November this week, Brent futures ended the week 3.3 percent lower and WTI dropped 2.7 percent.
A Reuters poll showed analysts have grown more pessimistic over the prospects for a significant price rally this year, global fuel consumption is expected to dip this year in the face of a broad economic slowdown.
China’s February factory activity fell for a third month as the world’s second-largest economy continued to struggle with weak export orders, a private survey showed on Friday. The weakness is also being felt across the wider region. South Korea’s exports contracted at their steepest pace in nearly three years in February as demand from China cooled further. Despite this, fuel consumption, especially in Asia’s developing economies which are key drivers of global oil demand, is so far holding up.
Oil rises on U.S.-China trade deal hopes, OPEC's ongoing supply cuts
Oil prices rose on Monday, buoyed by output cuts by producer club OPEC and reports that the United States and China are close to a deal to end a bitter tariff row that has slowed global economic growth.
The rally followed reports that the United States and China are close to ending their bitter year-long trade dispute.
The two countries appear close to a deal that would roll back U.S. tariffs on at least $200 billion worth of Chinese goods, as Beijing makes pledges on structural economic changes and eliminates retaliatory tariffs on U.S. goods, a source briefed on negotiations said on Sunday in Washington.
Hopes of an end to the trade spat between the two world’s biggest economies added support to a market that has been rallying for the past two months on cuts to production.
Oil Future close 1st March:
Brent: $65.07(-1.24)pbr Front month May
WTI: $55.8(-1.42)pbr Front month April
MGO: $614.5(-10.50)/mton Front month March
NY Harbor Ulsd: $616.03(-8.09)/mton Front month April
Oil Futures trading at GMT: 07.57; Brent: +15 cents, WTI: +13 cents
Expect bunker prices decline today, Fuel Oil down USD 5-7 /mton and MGO down USD 8-10 /mton.
