Previously in this series, we discussed that most of the crude tanker stocks gave negative returns in week 7—the week ending February 16, 2018. VLCC (very large crude carrier) and Suezmax rates fell, while Aframax rates rose in week 7. In this part of the series, we’ll see how crude oil and bunker fuel prices fared in week 7.
In week 7, oil prices posted a weekly rise. Oil prices rose mainly due to comments from Saudi Arabia’s oil minister, Khalid Al-Falih, on Wednesday.
Brent crude oil prices (DBO) closed at $64.9 per barrel on February 16, 2018—up 4% from the previous week. WTI (West Texas Intermediate) oil prices closed at $61.5 per barrel—4% up week-over-week.
Bunker fuel prices
On February 15, 2018, the average bunker fuel price was $400.5 per ton—compared to $416 per ton on February 8. According to Gibson’s report for week 7, bunker fuel prices at Rotterdam were $341 per ton on February 15—compared to $351 per ton the previous week. Bunker fuel prices at the Port of Fujairah dropped to $370 per ton from $381 per ton the previous week, according to the report.
Which companies were impacted?
Industries that transport commodities on ships incur bunker fuel costs. The industries include 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.