Bunker Market this morning 24th August!
Volatility prevails for the oil prices. - Half a day oil prices up and second half oil prices down again. The reasons for the volatility are almost the same every day.
Will OPEC manage to agree on a production freeze at the September meeting in Algeria?? - Iran wants to reach preproduction level as it was prior sanctions were imposed. - Iraq is not content with present production level and finally Saudi Arabia is producing flat out and probably ready to struck a deal. - The answer is NO! Do not believe OPEC can agree on anything except sending out false expectations, because it seems to work well enough. Every time they do the market jumps.
Oil prices fell early on Wednesday morning as an unexpected build in U.S. crude stocks weighed on markets, along with concerns that Chinese crude demand could falter as Beijing clamps down on alleged tax evasion in the oil industry.
Robust Chinese crude demand growth has been driven by independent refiners, also know as teapots, who began to import crude last June after obtaining government crude import quotas and licenses.
But Beijing's crackdown on alleged tax evasion in the oil industry, targeting the teapots, threatens to put a lid on Chinese demand.
Oil Future close 23rd August:
Brent: $49.96 (+0.80)pbr
WTI: $48.10 (+0.69)pbr
MGO: $440.25 (+4.50)/mton
Ny Harbor Ulsd: $462.34 (+4.74)/mton
Oil Futures are at GMT 06.07 trading downward again around
60 - 70 cents per barrel for both Brent and WTI.
Expect bunker prices small changes today.