World News
Bunker Supplier Plaza Marine Sees Hedging Programme Holding Off Volatility
US-based bunker supplier Plaza Marine has limited its exposure to this year's price volatility with its hedging programme.
The firm was insulated from the 'unprecedented fluctuations in the oil markets' by its hedging in the first quarter, it said in an emailed statement on Wednesday. The company saw an improvement in both revenue and profits in the first three months of the year, it said without revealing the numbers.
Bunker prices repeatedly broke through record highs in the aftermath of the Russian invasion of Ukraine in late February, and have fluctuated dramatically in line with crude since then.
"Hedging activities seek to insulate bunker suppliers such as us from variations in the price of fuel commodities," William Gotimer Jr, president of Plaza Marine, said in the statement.
"Daily monitoring of our inventory and sales positions allows us to enter appropriate hedging transactions each day.
"The effectiveness of any such program is truly tested when the markets experience the extreme pricing fluctuations, we saw in the past ninety days.
"I am proud to say our program worked as intended allowing us to maintain service to our customers while achieving our revenue and profitability goals."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 567.50 | 3.50 | 700.00 | 14.50 |
| Rotterdam | 512.50 | 4.00 | 695.00 | 17.50 |
| Houston | 556.00 | 6.00 | 679.00 | 1.00 |
| Fujairah | 562.50 | 2.50 | 755.00 | 0.00 |
| Global 20 Ports Average | 589.00 | 3.00 | 764.50 | 3.50 |
| Global 4 Ports Average | 552.00 | 3.00 | 699.00 | 2.50 |
| Global Average Bunker Price | 635.50 | 1.00 | 811.50 | 11.00 |
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