Keeping an eye on bunkers. Your weekly bunker update powered by InterContinental Bunkering.
Brent was down 25 cents or 0.6%, at $39.53 at 0455GMT after a drop of over 5% through Tuesday, with WTI down 0.8%, or 28 cents to $36.48 per barrel after a fall of 8% through Tuesday.
We are seeing a good correction on crude at the minute, long overdue many might add, as Oil extends losses after its first Sub-$40 Close since Mid-June.
Abu Dhabi is cutting official crude pricing for October, following a similar Saudi move over the weekend and sending a further bearish signal for oil.
The UK have introduced new measures in a bid to stifle any second waves of the pandemic, by limiting groups of up to 6 people indoors and out, as the Coronavirus infection have seen unabated growth in areas such as India, parts of the US and Spain.
The market sentiment seems stuck on the point of demand, with concerns rising as Chinese demand cools off after a buying spree during the COVID-19 pandemic, and demand for fuels is lacklustre as international travel is still on hold across the globe.
The Asian gasoline refining margin rose to a 2-week high against gasoline production units in South Korea and Thailand, Argus 92R Singapore gasoline price against Ice Brent, rose to $2.98/bl on 7 September, with it last higher 25 august.
In the run-up to the presidential election in the US on November 3, Trump has signed an order to ban offshore oil drilling in the eastern Gulf of Mexico as he seeks to win support of the voters, although met with scepticism from environmentalists, and disappointment from the drilling industry. The order acts as an important step in Trump’s campaign, although it can be reversed by a future president.
In other US news, The Iranian fuel bound for Venezuela that was seized by the US is due to arrive in Texas in the next few days, as Washington continues to disrupt trade flows between Caracas and Tehran. Trump has increased pressure on both countries, by placing sanctions on exports that have spooked oil customers and shipping firms. Hurricane Laura is still causing problems for the citizens of Louisiana, with 8.5% of the state still without power. Some of the hardest-hit areas, including the power grid that has a 1 million bpd refining capacity, are still yet to recover.
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