Slowing economic activity around the world, restricted mobility, fears of the second wave of COVID-19 and a potential trade war are all contributing to a drop in oil prices over the past week.
The World Bunker Index MABUX has declined for a week.
• The 380 HSFO index fell from 310 to 293 USD/ MT (-17.00 USD)
• VLSFO lost 23.00 USD: from 358 to 335 USD / MT
• MGO declined by 24 USD: from 435 to 411 USD / MT
• The Global Scrubber Spread (SS) (price difference between 380 HSFOs and VLSFOs) continues to narrow: this time by 5.66 USD and averaged USD 44.73 (50.39 USD a week ago)
Meanwhile, SS Spread in Rotterdam has dropped during the week from 35.00 USD (03.09) to 29.00 USD. Average value of SS spread for the week decreased from 42.17 USD to 33.50 USD.
In Singapore SS Spread has demonstrated a downward trend as well during the week: from 57 USD to 54 USD. However, it was steadier than in ARA. Average weekly SS Spread lost 5.34 USD: from 60.17 USD to 54.83 USD.
Europe, one of the world’s biggest diesel consumers, faces a major glut which combined with weak demand is weighing heavily on the ability of the region’s refineries to keep running. Having hit record lows at the height of the COVID-19 pandemic in April and May, European diesel margins are trending lower again after posting a modest recovery in July.
While the easing of lockdowns in recent months across Europe has boosted diesel demand, some countries are seeing the recovery stall, including Spain and the UK.
