Bunker Buyers Face Turbulent Week as Brent Jumps 20% on Saudi Attacks

by Ship & Bunker News Team
Monday September 16, 2019

Bunker buyers are facing another turbulent week for fuel prices after oil prices surged in early trading Monday.

As markets opened, Brent jumped some 20% to almost $72/bbl in response to news half of Saudi Arabia's production capacity - over 5 million bbls/day  - has been taken offline following attacks at the weekend.

Brent soon fell back to $67/bbl, but Joseph McMonigle, senior energy analyst at Hedgeye Risk Management LLC, was among those expressing concern that "there is almost no geopolitical risk priced into oil markets."

This is clearly bad news for bunker buyers, who in recent weeks have already seen prices in major ports rise sharply as markets grapple with the run in to IMO2020.

Ship & Bunker data put the average price of IFO380 in Singapore Friday at $474.50/mt, a 4.6% premium over Brent.

At this level, $67/bbl Brent would put HSFO in the port close to $530/mt.

A month ago, IFO380 in Singapore was just under $350/mt.