BUNKERWORLD INDEX: Bunker prices down as crude weakens
23rd April 2021 16:42 GMT


Bunkerworld Index prices fell in the week ended April 23 on the back of lower crude markets, which have seen mixed signals on the prospect of returning demand, while local bunker market sentiment diverged, with Singapore succumbing to a bearish outlook and the Spanish port of Las Palmas reporting an appetite boost.

The Bunkerworld 0.5%S fuel oil pricing index ended April 22 at $492/mt, down $8/mt on the day and $11/mt on the week, but was $4/mt higher than 30 days prior.

The BW380 index, which represents value for 3.5%S fuel oil, ended April 22 at $398/mt, down $3.50/mt on the day and $2/mt on the week, but was $4.50/mt higher than 30 days previously.

Dated Brent crude oil prices dropped on the week from $65.54/b to $65.17/b -- converting from barrels to metric tons for residual fuel oil product densities this equates to $2.35/mt.

Crude market participants have been weighing up rising COVID-19 infection rates in India and Japan with optimistic signs for demand recovery in the US and Europe as coronavirus restrictions ease.

“Oil fundamentals will strengthen through the summer. Refinery margins see modest upside led by gasoline, but surplus capacity limits the increase,” S&P Global Platts Analytics said in its April 20 European outlook report.

Demand for Singapore 0.5%S marine fuel is likely to remain subdued in the near term as other ports in North Asia are priced competitively against delivered-basis for the grade in Singapore, traders said.

The outlook for demand was largely bearish, a condition expected to last into May and until buyers return around Q3 for new term-contract fixings. Term-basis purchases had mostly already been contracted in March, according to market sources.

In the Middle Eastern port of Fujairah, demand for HSFO had ticked upward due to scrubber-fitted vessels coming back online.

This week Fujairah-based bunker suppliers estimated 0.5%S marine fuel sales in April and May to have fallen short of the 480,000 mt sold in March.

In America, restrained demand had been keeping Houston retail bunker prices at bay, according to market sources, moving within a $10 range since mid-April.

Bunker prices on the US Atlantic Coast had trended down this week in lockstep with falling ICE Brent futures and wholesale New York Harbor barge markets. US West Coast prices had also been weaker, in line with Asian underlying indicators.

In the Mediterranean, demand from Gibraltar remains slightly subdued, while Las Palmas continues to enjoy a recent boost in bunkering interest. Some pockets of tightness will likely persist across the region, in particular for availability of 3.5% fuel in Malta.

The BW Indexes are weighted daily indexes made up of price 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.

Click here to see prices: https://www.bunkerworld.com

Bunkerworld .,
23rd April 2021 16:42 GMT