BUNKERWORLD INDEX: Prices rise amid firming crude and variable VLSFO supply
12th March 2021 11:52 GMT

The BW 0.5%S index ended March 11 at $525/mt, an increase of $9/mt on the day, of $13/mt on the week and $35/mt on 30 days previously.

The BW380 index, which represents value for 3.5%S fuel oil, ended the day at $420.50/mt, which was $6.50/mt higher on the day, $18.50/mt higher on the week and $41/mt higher than 30 days previously.

In crude markets, the signing of a $1.9 trillion stimulus package has raised the prospect of increased oil demand, as it promises to expedite global economic recovery.

However, there have been bearish undercurrents after OPEC, in its closely watched Monthly Oil Market Report released on March 11, lowered its oil demand forecast for Q1 and Q2 by 180,000 b/d and 310,000 b/d, respectively.

In tanker markets, the outlook over the coming months is for more demand due to the improving COVID-19 environment and freight rates continue to hover around breakeven levels, analysts at S&P Global Platts Analytics said. “These uncertain times still have the potential to cause similar 2020 spikes if vessels are caught out of position and tightness occurs,” they added.

In the Middle Eastern port of Fujairah, the delivered marine fuel 0.5%S bunker market is likely to firm up over the coming days due to to an increasingly tight availability situation, especially on the ex-wharf front. "There are some delays from the refinery side, it seems. There is no oil in the market, so I expect a tight and busy week next week," said a Dubai-based trader.

Demand in Northwest Europe was expected to remain steady to poor. On the supply side, there have been some reports from suppliers of 0.5%S FO tightness in Rotterdam although this should improve in the coming weeks, they said.

Bunker prices in Panama and other Latin American hubs continue to show strength, but while higher demand is supporting ports such as Balboa and Buenos Aires, others are mostly being shored up by a bullish energy complex.

The BW Indexes are weighted daily indexes made up of assessments at 20 key bunkering ports. To obtain a representative geographical spread, the ports were selected by size with reference to their geographical importance.

The BW0.5%S Index ports are Hong Kong, South Korea, Shanghai, Singapore, Japan, Las Palmas, Durban, Fujairah, Gibraltar, Piraeus, Rotterdam, St. Petersburg, Houston, Los Angeles, New York, Balboa and Santos.

The BW380 Index ports are Busan, Canary Islands, Colombo, Durban, Fujairah, Gibraltar, Hong Kong, Houston, Los Angeles, New York, Offshore Nigeria, Panama Canal, Piraeus, Rotterdam, Santos, Shanghai, Singapore, St. Petersburg, Suez and Tokyo.

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Bunkerworld .,
12th March 2021 11:52 GMT