Weekly Highs of Bunker Fuel Prices
In a significant turn of events, most ports worldwide witnessed a hike in bunker fuel prices last Friday. The global average price of Very Low Sulphur Fuel Oil (VLSFO) reached a peak unseen since the previous week. This surge in prices reflected the robust health of the bunker fuel market.
The G20-VLSFO Index, indicative of prices across a span of 20 key bunkering ports, climbed by $3.50/mt, settling at $598.50/mt on Friday. This marked a sharp ascent to its highest level since July 14.
Indices Jump as Crude Futures Gain
Not only did the G20-VLSFO index show promise, but the G20-High Sulphur Fuel Oil (HSFO) Index also displayed a similar upward trajectory. Alongside it, the G20-Marine Gas Oil (MGO) Index gained $2.50/mt, culminating at $822/mt.
Intercontinental Exchange Brent crude futures also demonstrated considerable advances, outlining a gain of $1.43/bl. By the end of Friday, the futures were valued at $81.07/bl.
Port-Wise Price Advances
As if on cue, several ports reflected this global trend. In Singapore, the prices advanced by $4.50/mt, closing at $573.50/mt. Similarly, at Rotterdam, prices rose by $5.50/mt to $555/mt. The port of Fujairah wasn’t far behind, with prices climbing by $4.50/mt to reach $566.50/mt. Houston showed a sharp increase as well, with prices taking a leap by $1/mt to hit the $569.50/mt mark.
Monday Morning Trading Blues
However, come Monday morning, the upward wave seemed to have ebbed slightly. Brent crude futures were trading diluted by $0.27/bl at $80.80/bl. This was a snapshot taken at 9:18 AM London time. This dip in trading could prompt an equivalent $2.03/mt fall in bunker prices.
Through this volatility, the fuel market reflects the dynamic nature of global economic activity. Although these market fluctuations might seem daunting, keep an eye out for the many windows of opportunity potentially hidden within this oscillating bunker price landscape.
