Bunker Market this evening 27 July!
Oil market made unexpectedly a dive, when DOE released crude stock figures showing an increase of 1.7 million barrels against a drop of 2.3 million barrels. Brent closed down $1.40 a barrel and WTI closed down $1.00 a barrel after a quite trading day.
Driving season in the U.S. is coming to an end and the increase of gasoline stocks are pushing the oil prices further down. The oil prices are heading for the important resistance of level $40 a barrel and if it breaks through the fall might accelerate.
Oil prices are still up about 60 percent from 12-year lows of $26-$27 in the first quarter. But the rally has faded since Brent and WTI breached $50 in May, on worries that oil may be headed again for a glut like that which forced prices off from highs above $100 in mid-2014.
Some market participants think the glut concerns are exaggerated, but MABUX don't.
Many major companies are still saying the market reached the bottom and soon market will a rise to a level around $50-60 a barrel. - It is obvious they are all trying to talk the market upward but fundamentals are against them.
Assume nothing extraordinary happens from now an onwards for a while, oil prices will edge downward. But the world is not at a standstill and anything of great importance could happen at any time and rock the boat. In other words to predict the future oil price is impossible. What ever we do, calculate, estimate or just guessing the chance of succeeding is still 50/50.
MABUX World Index closed irregular:
380HSFO = $219.86(+0.86)/mton
180HSFO = $267.71(-1.65)/mton
MGO = $454.29(-2.14)
Expect bunker price to continue downward.