Bunkerworld Index: Prices rising with crude, but demand remains weak
12th February 2021 15:10 GMT

Singapore traders wait to see if firm sentiment continues post-Lunar New Year

Europe, Latin America weather sluggish demand amid higher bunker prices

The S&P Global Platts Bunkerworld Index has risen through the week as Brent crude prices reached a one-year high above $61/b.

The BW0.5%S Index ended Feb. 11 at $486/mt, down $4/mt day on day but up $18/mt on the week and $39/mt higher than 30 days previously.

The BW380 Index, which represents value for 3.5% sulfur fuel oil, was up $1.50/mt on the day to $381/mt to be $10/mt higher on the week and $21/mt on the month.

Saudi Arabia’s 1 million b/d production cut in February and March has lent support to crude markets, as has the COVID-19 vaccine rollout.

The US Energy Information Administration raising its crude price forecast in its monthly Short-Term Energy Outlook on Feb. 9. The EIA expects Brent crude to average around $53.20/b in 2021, and to reach $55.19/b in 2022.

Travel restrictions in China during the Lunar New Year and across most of Europe continued to present short-term headwinds to the outlook.

Platts assessed the Dated Brent crude benchmark at $61.315/b on Feb. 11, up 8 cents/b day on day, up $1.55/b since Feb. 5 and $6.335/b higher than Jan. 11.

S&P Global Platts Analytics said Feb. 10 in its Coronavirus Dashboard report for energy demand that early data from Israel showed vaccines among large groups of people were effective but that deployment of vaccines was slow going in many parts of the world.

Demand in European bunkers market was expected to remain lackluster in the coming week amid soft fundamentals.

Latin American bunker prices were weighing the balance between a still-contained demand and the firm advances seen in global oil markers in the last few weeks.

Singapore's 0.5%S marine fuel delivered prices surged to a one-year high of $494/mt on Feb. 8, Platts data showed, ahead of Lunar New Year holidays.

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.

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

Bunkerworld .,
12th February 2021 15:10 GMT