uploads///Bunker Fuel Prices_Week

Where Did Oil Prices and Bunker Fuel Prices Head in Week 5?

By

Updated

Looking ahead

Previously in this series, we discussed that most of the crude tanker stocks gave negative returns in week 5 (week ending February 2, 2018). VLCC (very large crude carrier), Suezmax, and Aframax rates dropped last week. In this part of the series, we’ll see how crude oil and bunker fuel prices fared in week 5.

Article continues below advertisement

Oil prices

Brent crude oil prices (DBO) closed at $68.23 per barrel on February 2, 2018—down 2% from the previous week. WTI (West Texas Intermediate) oil prices were down 1% week-over-week at $65.14 per barrel.

Oil prices fell following the rise in US rig counts and a worse-than-expected buildup in US crude oil inventories.

Bunker fuel prices

On February 1, 2018, the average bunker fuel price was $444 per ton—compared to $445 per ton on January 25. According to Gibson’s report for week 5, bunker fuel prices at Rotterdam were $378 per ton on February 1—compared to $377 per ton the previous week. Bunker fuel prices at the Port of Fujairah rose to $397 per ton from $396 per ton the previous week, according to the report.

Article continues below advertisement

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 closely relate 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.

Advertisement

More From Market Realist