World News
Too Early to Call 'Upward Trend' For Bunker Prices: Integr8
The bunker industry should not expect the rally in prices over the past week to turn into a longer trend, according to trading company Integr8 Fuels.
Very low sulfur fuel oil prices at the top four bunkering hubs rose by $25.50/mt in the week to Monday, according to Ship & Bunker's G4 index. Prices appeared to reach their nadir on April 28 and have generally been rising since.
"We are now entering the next phase in developments, with production coming down and at the same time countries coming out, or planning to come out, of lockdown," Integr8 wrote in a research note published Tuesday.
"These are clearly more bullish signals than we have seen.
"Despite this, it is still far too early to say we are on a definite upward trend."
The company cited expectations of oil stocks rising for at least another one or two months as evidence that the recovery may not be sustained.
The current forward curve for Brent crude suggests VLSFO prices will remain below $300/mt for the next 12 months, the company said.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 556.50 | 9.00 | 685.00 | 6.50 |
| Rotterdam | 506.00 | 6.00 | 665.00 | 11.00 |
| Houston | 552.50 | 0.50 | 682.00 | 4.00 |
| Fujairah | 548.00 | 7.50 | 750.00 | 3.00 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
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