World News
Japan Signs Oil Deal with Saudi Arabia
Japan has signed a deal allowing it to buy emergency supplies of crude oil from Saudi Arabia if there is a sudden spike in oil prices or a political event that affects oil supply, Reuters reports.
Saudi Arabia's ability to pump more crude oil into international markets has declined as the nation's domestic consumption of crude oil for power generation has risen.
More refineries have been built in the country, but its total crude oil output capacity has stayed steady at 12.5 million barrels per day (mbpd).
As the largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), Saudi Arabia has a policy of supplying the world oil market with enough crude oil to meet demand, but it also keeps control of its own oil resources.
Japan's demand for fossil fuels has grown since it shut down most of its nuclear power plants it the wake of the Fukushima disaster.
Charter rates for very large crude carriers (VLCCs) moving crude oil from the Middle East to Asia have risen in recent weeks, reflecting greater demand for transportation of the fuel.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 511.00 | 2.00 | 602.00 | 3.00 |
| Rotterdam | 469.50 | 6.50 | 609.50 | 5.00 |
| Houston | 472.00 | 5.50 | 618.50 | 9.00 |
| Fujairah | 500.00 | 5.50 | 704.50 | 3.50 |
| Global 20 Ports Average | 531.00 | 1.50 | 706.50 | 3.50 |
| Global 4 Ports Average | 488.00 | 2.00 | 633.50 | 1.00 |
| Global Average Bunker Price | 569.50 | 0.50 | 752.50 | 0.00 |
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