Previously in this series, we saw that the crude (DBO) tanker index rose in week 46 (week ending November 17, 2017). VLCC (very large crude carrier) and Suezmax rates fell, while Aframax rates rose. In this part of the series, we’ll see how crude oil and bunker fuel prices fared in week 46.
Crude oil prices
In week 46, crude oil prices saw some downward correction from the two-year highs recorded last week. The prices were down due to growing US inventories and production. According to EIA data, US crude stockpiles rose by 1.9 MMbbls (million barrels) for the second consecutive week. Crude production touched a record high of 9.65 MMbpd. Brent crude oil prices fell to $61.36 per barrel on November 17, 2017, from $63.9 per barrel on November 10, 2017.
Bunker fuel prices
On November 16, 2017, the average bunker fuel price was $407 per ton—compared to $417 per ton on November 9, 2017. According to the Gibson report for week 46, the bunker fuel prices at Rotterdam were $351 per ton on November 16, 2017—compared to $361 per ton the previous week. The bunker fuel prices at the Port of Fujairah fell to $368 per ton on November 9—compared to $384 per ton on November 16, 2017, according to the same report.
Which companies are impacted?
Industries that transport products on ships incur bunker fuel costs. These industries are LNG (liquefied natural gas) carriers, product tankers, dry bulk carriers, and crude oil tankers. Bunker fuel prices are closely related 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 Nordic American Tankers (NAT), Gener8 Maritime Partners (GNRT), Euronav (EURN), and Teekay Tankers (TNK). GasLog and Hoegh LNG Partners (HMLP) are LNG carrier companies. Navios Maritime Partners (NMM) is a major dry bulk shipper.
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