Four Days, Four Increases in Oil Prices

by George Belekos, KPI Bridge Oil
Tuesday February 3, 2015

Four days, four increases in oil prices. This is the first time that has happened since August. 

While we feel it will be short lived, one must act in accordance with the market where we recommend to clear your desk of any pending bunker requirements as prices seem more likely to increase than decrease right now. 

Since Thursday last week we have seen nearly a 20% increase in WTI. 

Obviously, bunker prices have increased in line with rising resupply costs. 

There are a lot of excuses being thrown around right now as reasons for higher prices. 

There is a strike on the US West Coast, rig counts have gone down in the USA, major oil companies are advising they will spend less money on exploration, but we see the increase largely driven by speculators who have bet on lower oil prices and are covering those bets. 

It will be interesting to see how long this lasts, but inventories are out tomorrow and that may provide some fodder to lower prices or the next spark to reignite them further.

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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