Keeping an eye on bunkers. Your weekly bunker update powered by InterContinental Bunkering.
Brent crude futures were down 74 cents, or 1.8%, at $40.46 a barrel by 0644 GMT, having climbed nearly 2% the previous day. U.S. oil was down 90 cents, or 2.3%, at $38.67, after gaining 2.6% on Tuesday.
API figures and data showed a build in Crude stocks of around 4.5 million barrels- well above analysts’ estimates. This build prompted heavy selling with supply disruption as a result of Hurricane Zeta tapering off. (Reuters)
The storm that is brewing on the gulf of Mexico threatens the major production hub in the US Gulf region which accounts for 17% of total crude output in the US. Energy producers have already cut 16% of production in the area over safety concerns that the hurricane will bring, which equates to 293,656 barrels of oil per day. It is possible that it could reach the northern Gulf coast at or near hurricane strength on Wednesday. (Reuters)
Saudi Aramco has launched ambitious plans to reach output of crude and products of 6 million barrels per day within 3 years. (S&P Global Platts)
Chinese refineries are extending run cuts which mimics the sentiment in October, as both independent and state-run refiners cut run rates as refining margins fall. It was the fourth monthly drop since July where the run rate was 83.1%- a six-month high. (S&P Global Platts)
Continuing with China, Jet-fuel demand is back to near pre-COVID levels according to reports from Reuters this morning, as a result of a quick rebound in customer travel and cargo freight, but international travel remained weak as expected. Domestic travel accounts for two-thirds of China’s overall aviation fuel demand. (Reuters)
See your weekly worldwide bunker price /indications here: