Bunker Market this morning 25th October!
Brent and WTI are both trading near $50 a barrel with OPEC’s Secretary-General Mohammed Barkindo, set to visit Baghdad on Tuesday for talks aimed at resolving a deal on output after Iraq said it should be exempt from planned cuts. - Iraq said on Sunday it should be excluded due to conflict with Islamic militants.
It is obvious that each member of OPEC is more or less unwilling to cut. They all invent excuses not to cut their on production.
Until there is more clarity on the planned cut, which OPEC hopes will be coordinated with non-members like Russia, oil prices would likely remain range-bound - but volatile - around current levels.
It is certainly a risk that OPEC members will have difficulties to agree on cut levels. Producers are seen to sell oil contracts, hedging present price level, to protect themselves for a drop in the oil market.
The market is expected to hover around present price level until OPEC's official meeting in Vienna at the end of November.
Oil Future close 24th October.
Brent: $51.46(-0.32)pbr
WTI: $50.52(-0.33)pbr
MGO: $464.25(-0.25)mton
Ny Harbor Ulsd: $486.36(+1.79)/mton
Oil Futures at GMT 06.11 Brent down 4 cents and WTI up 3 cents.
Expect bunker market small changes today if any. The oil and bunker markets are in a waiting mood.