Bunker prices ups-and-downs week to continue
The Bunker Review is contributed by Marine Bunker Exchange
WTI oil price fell slightly on Thursday as rising U.S. crude inventories due to robust shale production outweighed concerns over renewed air strikes in Yemen. Saudi-led coalition warplanes continued bombing Yemen on Wednesday despite an announcement by Riyadh a day earlier that it was ending its campaign of air strikes. – Well Yemen is not among the biggest of producers in the Middle East but numerous ships loaded with crude bound for Europe passes through the Gulf of Aden on Yemen’s southern coast and onward to the straight between Yemen and Djibouti. Oil prices have raised as much as $10 this month mainly due to concerns over potential supply disruption as well as signs of stronger demand.
On Friday Brent crude oil price has been irregular despite OPEC’s production soars. OPEC said that its output surged in March, adding to the global glut with a production jumped 810.000 barrels per day, but the demand for crude has increased significant lately according to OPEC. Dipping output from the United States and other rival producers due to oil prices halving since June last year increased demand for OPEC’s supplies.
OPEC’s strategy to put pressure on the high-cost producers is working, but the individual members seem to have moved off that focus and are instead producing as much as they can. OPEC’s report may reinforce the perception that major producers are staking out market share ahead of a potential rise in Iranian exports following its framework accord with world powers over its nuclear program.
Oil prices will continue to shift, one day up and one day down. Speculators are convinced oil prices must go up meanwhile funDamental tells the opposite. One thing is clear that the present oil prices are healthy for the world economy with business picking up globally followed by an increased demand for oil.
At GMT 12:48 Brent was up 69 cents at $63.42 a barrel and WTI up 25 cents at $56.41 a barrel.
For the next week we expect bunker prices to be irregular in general.
* MGO LS
All prices stated in USD / Mton
All time high Brent = $147.50 (July 11, 2008)
All time high Light crude (WTI) = $147.27 (July 11, 2008)