World News
Aegean: Bunker Markets Are "More Rational" Since OW Bunker Collapse
Aegean Marine Petroleum Network Inc. [NYSE: ANW] (Aegean) Tuesday said bunker market pricing has become more rational since November's collapse of OW Bunker.
Speaking on the company's earnings call to discuss this week's release of quarter four (Q4) and full year 2014 results, Aegean Chairman Peter Georgiopoulos suggested prices in the bunker market are more accurately reflecting supply and demand than a year ago.
He added that the development was a welcome one.
"We are not competing against one big competitor that was playing in a lot of games," said Georgiopoulos.
"We had one competitor that would enter markets, undercut us on price, to try and build up their volumes for various reasons.
"Now that that competitor is gone, good riddance. We are seeing much more rational pricing."
Aegean President E. Nikolas Tavlarios added that rational pricing was not the only factor feeding into improving spreads for the company.
He said the company was also improving margins by sourcing product further upstream and bringing some blending activities in house.
Earlier this week, Aegean announced strong Q4 and full year results, saying 2014 was a "landmark year" for the company.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 571.50 | 0.00 | 665.50 | 1.00 |
| Rotterdam | 512.00 | 3.00 | 663.00 | 0.50 |
| Houston | 545.50 | 3.00 | 666.00 | 9.50 |
| Fujairah | 560.50 | 0.00 | 743.50 | 1.50 |
| Global 20 Ports Average | 584.00 | 1.00 | 751.50 | 2.00 |
| Global 4 Ports Average | 547.50 | 0.00 | 684.50 | 2.50 |
| Global Average Bunker Price | 633.50 | 0.50 | 805.50 | 0.00 |
Popular Now More
-
Nov 11Ship & Bunker explores whether legal and compliance concerns are starting to outweigh the apps' unquestioned convince. -
Nov 11OFAC says efforts to evade sanctions are becoming increasingly sophisticated. -
Nov 14The new hire had previously worked for Lanka Marine Services since February 2017.