There was no escaping the bearish wave that descended upon the majority of bunkering ports last Tuesday. The latest price review revealed a significant dip in bunker fuel prices, the most notable being the global VLSFO average slipping its way down to its lowest rates in almost a week.
Dissecting the Global Indices
Casting an analytical eye over Ship & Bunker’s benchmark G20-VLSFO Index, it was clear this downward price pressure swept over the entirety of the 20 major bunkering ports under its umbrella. The index surrendered $3 per metric tonne (mt) falling to $682/mt, bottoming out at the lowest figures since September 14.
In the wake of this drop, the G20-HSFO Index didn’t make it unscathed either. Shedding $9/mt to $592/mt, it echoed the negative trend. A similar fate befell the G20-MGO Index, with its prices reeling back by $8/mt to reach the $1,013 mark. The ICE Brent crude futures, the international benchmark for oil prices, trailed along, easing down by $0.09 per barrel (bl) to settle at $94.34/bl last Tuesday.
The Echo Across Top Ports
Replicating the global trend, VLSFO prices at the world’s leading ports also noted negative fluctuations. Singapore noted a loss of $4/mt, settling at $674/mt. Rotterdam experienced a modest drop of $3.50/mt, describing new figures at $636.50/mt. At Fujairah and Houston, fuel prices slumped by $1.50/mt and $0.50/mt hitting the decks at $665/mt and $672/mt, respectively.
Brent Crude Futures Trading on Wednesday
As Wednesday dawned, Brent crude futures continued to swim in turbulent waters. Benchmark prices were trading down by $1.00/bl, positioning themselves at $93.34/bl at 9:10 AM in London. In terms of metric tonnes, this would be correlatable to a fall of about $7.53/mt in bunker prices.
In conclusion, this downward spiral illustrates the inherent volatility of bunker fuel markets, influenced by factors as diverse as geopolitical tensions, supply-demand dynamics, and macroeconomic indicators. Yet, these price oscillations are part and parcel of the industry narrative, always keeping market watchers on their toes.
