Crude Prices Expected to Erode Further

by George Belekos, KPI Bridge Oil
Thursday November 13, 2014

The November 27 meeting of OPEC is fast approaching and it seems that none of the members are eager to cut production. 

This is fueling speculation of a price war and that crude prices will erode further.

This is of course reducing bunker prices worldwide. 

While bunker buyers are starting to prepare themselves for a rise in prices due to the sulphur regulation change, at least this recent drop in the energy complex has eased some of that pain. 

We are starting to see some suppliers no longer carrying inventory of low sulphur fuel oil 1.0% in some locations. 

As such buyers should not be surprised to see spreads increase between low sulphur 1.0% and 3.5% as the end of the year approaches and fewer suppliers carry it. 

Where is the bottom?  That remains to be seen, but IFO starting with a “3” would be welcome by ship owners everywhere.

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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