World News
Oil Surges as OPEC+ Coalition Announces Surprise Output Cuts
The price of oil has surged on Monday morning after the OPEC+ coalition of crude-producing countries unexpectedly announced output cuts on Sunday.
ICE June Brent futures were trading at 83.87/bl as of 6:26 AM in London, up by 5% on the day.
On Sunday members of the OPEC+ coalition announced a total of about 1.16 million b/d of further oil output cuts, on top of previously-announced reductions. Saudi Arabia alone will cut its production by 500,000 b/d.
The announcement came ahead of an OPEC+ ministerial meeting on Monday which had been expected to leave the cuts plan unchanged for the remainder of 2023.
The cuts are likely to leave bunker prices higher in the coming weeks unless global economic weakness reduces demand at a faster pace. But bunker ports focused on tankers may see a slight reduction in demand with fewer barrels being shipped around the world.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 571.00 | 1.50 | 685.50 | 5.50 |
| Rotterdam | 516.50 | 1.50 | 677.50 | 3.50 |
| Houston | 556.00 | 6.00 | 679.00 | 1.00 |
| Fujairah | 565.00 | 4.50 | 755.00 | 1.50 |
| Global 20 Ports Average | 589.00 | 3.00 | 764.50 | 3.50 |
| Global 4 Ports Average | 552.00 | 3.00 | 699.00 | 2.50 |
| Global Average Bunker Price | 635.50 | 1.00 | 811.50 | 11.00 |
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