In the previous part of this series, we looked at the average VLCC (very large crude carrier) rates for week 40, which rose 23.0% week-over-week. The Suezmax and Aframax rates fell. In this part of the series, we’ll see how bunker fuel prices and crude oil prices fared in week 40.
In week 40, crude oil prices fell on the back of US crude oil exports hitting a record high. According to EIA (U.S. Energy Information Administration) data, US crude oil exports rose 0.50 MMBD (million barrels per day) to 1.98 MMBD in the week ended October 6, 2017. There were concerns of oversupply. Brent crude oil prices fell from $57.41 per barrel on September 29, 2017, to $54 per barrel on October 6, 2017.
Bunker fuel prices
On October 5, 2017, the average bunker fuel price was $374 per ton, which compares to $386 per ton on September 28, 2017. According to the Gibson report for week 40, bunker fuel prices at Rotterdam were $313 per ton on October 5, 2017, compared to $325 per ton in the previous week. Bunker fuel prices at the Port of Fujairah remained unchanged from the previous week at $342 per ton, according to the same report.
Which companies were impacted?
Dry bulk carriers, product tankers, LNG (liquefied natural gas) carriers, and crude oil tankers all transport their products on ships. For shipping companies, bunker fuel is one of their most important costs. Bunker fuel prices are closely knit to oil prices. A rise or fall in oil prices translates to a rise or fall in bunker fuel prices.
Some of the major crude oil tanker companies are Navios Maritime Midstream Partners (NAP), Nordic American Tankers (NAT), Teekay Tankers (TNK), and Euronav (EURN). Golar LNG (GLNG) and Teekay LNG Partners (TGP) are LNG carrier companies. Navios Maritime Partners (NMM) is a major dry bulk shipper.