ENGINE: Global Market Update
Global bunker prices are moving in mixed directions today amid steady Brent values.
Changes in the day to 08.00 GMT today:
VLSFO prices down in Singapore ($1/mt), steady in Rotterdam and Gibraltar and up in Fujairah ($1/mt) and Houston ($5/mt)
LSMGO prices down in Singapore ($3/mt), Rotterdam ($2/mt) and up in Rotterdam and Fujairah ($3/mt), and Houston ($5/mt)
HSFO380 prices down in Gibraltar and Fujairah ($3/mt), Rotterdam ($2/mt), Singapore ($5/mt) and Houston ($10/mt)
Singapore’s Hi5 spread has fallen below $100/mt today, tracking downwards Brent prices. The bunkering hub’s sulphur spread was last at those levels in late March, when Brent was hovering at $60/bbl.
HSFO prices have been more resilient to Brent’s losses this week in Singapore, compared to VLSFO which have tracked lower Brent values.
Houston’s HSFO380 price has gained within the last week rising above Balboa’s price, as the product has tightened further in the market. VLSFO and LSMGO are more readily available in the US Gulf port.
Montfort has announced they will start bunker supply operations in Fujairah and Khor Fakkan starting from September. The company will be offering HSFO and LSMGO by barge, rising the number of HSFO suppliers in Fujairah to four. HSFO380 continues to be tight in the UAE bunkering hub, with 8 days of lead time recommended.
Brent
The futures contract is on track for a 5% loss on the week, as Brent has come under more pressure and has dropped to its lowest levels since May.
Front-month ICE Brent has lost another $0.50/bbl on the day to 08.00 GMT today, down to $66.66/bbl.
The continuous rise of Covid-19 cases around the world have weighted significantly on commodity markets and have fueled concerns about oil demand once again. Brent dipped below $67/bbl on Thursday and even trading below $66/bbl during the session.
A stronger dollar, discouraging economic data from China and soaring Delta-variant cases and deaths in the US have pushed crude prices lower.