Features
Industry Insight: A Look at The Recent Relationship Between Brent and IFO380 Bunker Prices
Due to the fact that Brent crude is priced in barrels, and bunker prices are quoted in USD per metric tonne (pmt), players often forget the deep discount marine fuel has on the product from which it came.
Using bunker price data from Ship & Bunker to calculate the average price of IFO380 in the key bunker ports of Singapore, Rotterdam, Houston, and Fujairah over the last 12 months, and then converting the price of Brent into USD pmt at a rate of 7.53 barrels pmt, we can see the price relationship much more clearly.
Over the last 12 months the average IFO380 bunker price for those ports has, on average, been 72.94% of the price of Brent for the corresponding period, with a spread between 69.85% (on September 6, 2013) and 76.25% (November 7, 2013).
By looking at the graph below, we can see that despite both Brent and bunker prices at their lowest for the period, since June IFO380's discount to crude has been steadily shrinking and is now nearing a 12-month low.
Popular Now
-
Nov 21CCO Christoffer Berg Lassen is stepping down from the company to be replaced by Anders Grønborg, while Peder Møller becomes its first chief operating officer. -
Nov 20The ISO 6853:2024 specifications, the first of their kind, cover the general requirements and properties for methanol specifically being used as marine fuel. -
Nov 21CTI-Maritec reports on undeclared quantities of cashew nut shell liquid found in VLSFO samples from Rotterdam and Singapore. -
Nov 20The new hire had previously worked as a bunker and lubricant trader for sister company Glander International Bunkering in Dubai. -
Nov 21Wong Kuin Wah, working at the time of the allegations for Sentek Marine & Trading, was handed a jail sentence of seven and a half years at a Singapore court on Monday. -
Nov 21Includes a regional manager in Dubai, London based global director, and an experienced bunker broker for the US office of a boutique broking and trading house. -
Nov 21The company is looking for candidates with a proven track record of managing a global team. -
Nov 18Lim had been convicted of two cheating charges over forged documents persuading HSBC to disburse at least $111.7 million in loans to Hin Leong. -
Nov 22Glander International Bunkering discusses how shipping companies can manage their responsibilities under the IMO's CII regulation. -
Nov 22Alexander Byas has joined the firm as a junior operations coordinator in Henley-on-Thames as of this month.