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Analyzing Bunker Fuel Prices in Week 2

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Jan. 16 2018, Published 12:05 p.m. ET

Looking ahead

Previously in this series, we discussed that crude (DBO) tanker stocks were mixed in the week ending January 12, 2018. Suezmax and Aframax rates fell, while VLCC rates saw a small increase. In this part, we’ll see how crude oil and bunker fuel prices fared in the second week of 2018.

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Oil prices

Crude oil prices are trading at a three-year high. Brent crude oil prices rose to $69.8 on January 12, 2018, from $67.6 on January 5, 2018. Crude oil prices have increased steadily since OPEC agreed to extend the production cuts. The recent rally was caused by instability in some of the key oil-producing countries around the world.

Bunker fuel prices

On January 11, 2018, the average bunker fuel price was $437 per ton—compared to $431 per ton on January 4, 2018. According to the Gibson report for week 2, bunker fuel prices at Rotterdam were $370 per ton on January 11, 2018—compared to $367 per ton the previous week. Bunker fuel prices at the Port of Fujairah fell to $386 per ton from $388 per ton a week ago, 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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