Week 37: Bunker Fuel Prices Rose
In the previous part of this series, we saw that VLCC (very large crude carrier) rates fell due to softer demand. Suezmax rates also fell, while Aframax rates rose in the week ending September 15, 2017 (week 37). In this part, we’ll see how crude oil prices and bunker fuel prices fared in week 37.
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Crude oil prices
Crude oil (DBO) prices rose in week 37 due to bullish sentiments. A weak US dollar and a bullish oil demand forecast by the IEA and OPEC contributed to the market’s optimism. The West Texas Intermediate crude oil price rose to $49.89 per barrel on September 15 from $47.48 per barrel on September 8, 2017. Brent crude oil prices rose to $55.48 per barrel on September 15 from $53.78 per barrel a week ago.
Bunker fuel prices
On September 14, 2017, the average bunker fuel price was $377 per ton—compared to $371 on September 7, 2017. According to the Gibson report for week 37, bunker fuel prices at Rotterdam were $324 per ton on September 14, 2017—up from $317 per ton the previous week. Bunker fuel prices at the Port of Fujairah rose to $338 per ton on September 14 from $335 per ton on September 7, according to the same report.
Which companies were impacted?
Product tankers, LNG (liquefied natural gas) carriers, dry bulk carriers, and crude tankers all transport their products on ships. For all of these shipping companies, bunker fuel is one of the most important costs. Bunker fuel prices are closely related to oil prices. Any rise in oil prices translates to a rise in bunker fuel prices.
Some of the major crude oil tanker companies include DHT Holdings (DHT), Navios Maritime Midstream Partners (NAP), Teekay Tankers (TNK), Gener8 Maritime Partners (GNRT), and Euronav (EURN). Navios Maritime Partners (NMM) is a major dry bulk shipper, while Golar LNG (GLNG) and Teekay LNG Partners (TGP) are LNG carrier companies.