World News
UK Supplier Looks to Provide Buyers With More Certainty Over Future Bunker Prices
UK physical marine gas oil (MGO) supplier Geos Group is looking to help clients form hedging strategies to buffer the possible effects of a rise in oil prices, the company has announced in an emailed statement.
The supplier noted that Spencer Dale, Group Chief Economist at BP, predicts global demand for energy is expected to rise by almost 40 percent over the next two decades largely on the backs of growing demand from third-world countries.
"By incorporating financial instruments such as swaps, caps, collars, and swap options into their purchasing plans, ship owners and operators can replace an unknown future fuel price with a more certain outcome," said the company.
Geos Group added that it expects shippers to become more concerned with how to protect current business performance once crude prices, and in turn bunker prices, begin rising again.
“Although there is still some risk involved, and possibly an additional cost, a hedging strategy that is carefully structured to suit a client’s needs can offer considerable protection against the financial risks of a highly volatile fuel market," said Commercial Director Adrian Proctor.
Earlier this year, Geos Group also announced a strategic distribution alliance with Phillips 66 to supply vessels across Northern England with MGO.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 516.50 | 3.00 | 692.50 | 3.50 |
| Rotterdam | 506.00 | 1.50 | 713.50 | 14.00 |
| Houston | 501.50 | 0.00 | 732.50 | 10.00 |
| Fujairah | 511.00 | 3.00 | 750.00 | 2.50 |
| Global 20 Ports Average | 550.00 | 0.50 | 775.00 | 1.50 |
| Global 4 Ports Average | 508.50 | 2.00 | 722.00 | 1.50 |
| Global Average Bunker Price | 588.00 | 0.00 | 818.50 | 2.50 |
Popular Now More
-
Jul 22The UK has sanctioned 135 ships and Lukoil's Dubai trading arm in a fresh move to disrupt Russia's shadow fleet and cut off oil revenues. -
Jul 21The EU has unveiled its new sanctions package against Russia, cutting the oil price cap to $47.6/bbl and blacklisting over 100 more vessels, including for the first time an Indian refinery linked to Rosneft. -
Jul 22The European Commission is planning reforms to improve biofuel certification and traceability after a probe into Chinese imports revealed weaknesses, though no fraud was confirmed.