World News
Early Indications Show VLSFO Price Rises of Around 10% at Key Hubs Following Iran Strikes
Early price indications received on Monday morning show the bunker market is initially in for price rises of around 10% after the weekend's outbreak of war in Iran.
Indications received by Ship & Bunker on Monday morning generally showed price rises in the $40-50s/mt for VLSFO, the $30-40s/mt for HSFO and $70-80s/mt for MGO. The market remains highly volatile, and these numbers are liable to change significantly before prices are finalised at the end of the day.
ICE Brent crude futures surged at Monday's open following the weekend's news, with the May contract initially trading at $81.50/bl, up from $72.87/bl at Friday's close, before dropping to as low as $75.92/bl by mid-morning in Singapore before steadily rising throughout the day to stand at $79.34/bl as of 12:49 PM in London.
MGO is likely to be more severely affected than other marine fuel grades because of the Middle East refining industry's high output of middle distillates. ICE March low-sulfur gasoil futures traded at $904/mt as of 12:50 PM in London, up from $752.75/mt at Friday's close.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 521.50 | 8.50 | 709.50 | 1.50 |
| Rotterdam | 489.50 | 9.50 | 720.00 | 2.00 |
| Houston | 494.50 | 1.50 | 710.00 | 4.00 |
| Fujairah | 519.50 | 10.00 | 777.50 | 3.50 |
| Global 20 Ports Average | 543.50 | 7.00 | 797.50 | 5.50 |
| Global 4 Ports Average | 506.00 | 7.00 | 729.00 | 2.50 |
| Global Average Bunker Price | 576.00 | 3.00 | 829.50 | 2.00 |
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