uploads///Crude OIl Prices_Week

Week 49: Oil Prices and Bunker Fuel Prices

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Dec. 12 2017, Updated 2:55 p.m. ET

Week 49

Previously in this series, we saw that crude (DBO) tanker stocks and the index fell in week 49, which ended on December 8, 2017. VLCC (very large crude carrier) rates fell, while Suezmax rates rose. In this part of the series, we’ll see how crude oil and bunker fuel prices fared in week 49.

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Oil prices

Brent crude oil prices fell to $63.4 per barrel on December 8, 2017, from $63.7 per barrel on December 1, 2017. Brent crude oil prices fell 0.5% last week amid concerns that rising US crude oil production will have a negative impact on OPEC’s supply cuts. On the last day of the week, oil prices rose 2% from the previous day’s close due to rising crude demand from China and threats of a strike in Africa’s largest oil exporter—Nigeria.

Bunker fuel prices

On December 7, 2017, the average bunker fuel price was $400 per ton—compared to $407 per ton on November 30, 2017. According to the Gibson report for week 49, bunker fuel prices at Rotterdam were $335 per ton on December 7, 2017—compared to $346 per ton the previous week. Bunker fuel prices at the Port of Fujairah fell to $373 per ton from $373 per ton the previous week, according to the same report.

Which companies were impacted?

Industries that transport commodities 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.

Some of the major crude oil tanker companies are Nordic American Tankers (NAT), Frontline (FRO), Gener8 Maritime Partners (GNRT), and Euronav (EURN). GasLog (GLOG) and Hoegh LNG Partners (HMLP) are LNG carrier companies. Navios Maritime Partners (NMM) is a major dry bulk shipper.

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