BUNKERWORLD INDEX: Prices waver amid mixed market dynamics and crude bearishness
11th June 2021 13:03 GMT

Bunker prices wobbled in the week to June 10 amid differing regional dynamics in marine fuel markets and signals of weakness in crude markets.

The Bunkerworld 0.5% sulfur fuel oil pricing index ended June 10 at $531/mt, showing a $4/mt decrease on the day, a $1/mt decrease on the week and a $12/mt increase compared with 30 days previously.

The BW380 index, which represents value for 3.5% sulfur fuel oil was at $420/mt, a $1.50/mt decline on the day, a $1/mt increase on the day and $8/mt higher than 30 days previously.

Crude oil futures have tracked lower amid news that the US has removed sanctions on some Iranian oil officials, raising the prospect that negotiations over a US-Iran nuclear deal are imminent.

Additionally, reports that Saudi Arabia will supply full volumes of July-loading crude to Asia have weighed on sentiment, market analysts said.

The outlook in China could be one of congestion. Many ports in China have recently implemented a slew of additional restrictions in a bid to curb the spread of the coronavirus as cases in a few Asian countries spike, creating an element of uncertainty and sparking fears of bunkering delays for maritime participants, industry sources said.

The stricter restrictions could mean that some ships will likely decide to bunker elsewhere in ports such as Singapore, leading to a potential drop in bunker sales at some Chinese ports, they said. It is also likely to upset shipping schedules with owners forced to face delays at some ports while also grappling with the complications of dealing with crew changes.

In the Middle Eastern port of Fujairah, demand for 0.5%S FO has seen a pickup this month compared to May, market sources said. However, supply of 3.5%S FO has tightened after one supplier exited the market last month.

The Mediterranean bunkers market was pointing to bearish fundamentals as sources said that a supply overhang alongside sluggish demand was weighing on prices. There were no availability issues forbunkers in the ARA region for the coming week, according to bunker suppliers. Demand was satisfactory at best in Northwest Europe.

Bunker pricing in North America spent much of the week tracking the US crude complex, with limited liquidity keeping movements in check. In Montreal, spot availability was heard impacted by congestion entering the weekend, and a local supplier said prompt deliveries were unavailable before June 14-15 for 0.5%S and marine gasoil stems.

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 BW 0.5% Sulfur 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 .,
11th June 2021 13:03 GMT