World News
BP Marine: Economic Growth Could Push Up Bunker Demand by 25% in 2017
Carlos G Torres, Global Head of BP Marine Fuels, says that if economic growth sufficiently improves then global bunker demand next year could grow by as much as 25 percent to reach 300 million metric tonnes (mt), Platts reports.
Torres suggests that such an economic development could help to revive major shipping segments, including container and dry bulk, where fuel-saving measures such as slow steaming along with overcapacity have been commonplace.
"The assumption here is that with a healthier economy the need to move cargoes fast will require vessels to speed up and bunker consumption will increase as a result," said Torres.
For this year, some estimates suggest there will be a 3 to 5 percent year on year decline in bunker sales at many ports, with Panama and Singapore noted as exceptions - with year to date sales at the latter some 9 percent ahead of of where they were last year.
Last Thursday, the International Maritime Organization's (IMO's) Marine Environment Protection Committee at its 70th session (MEPC 70) agreed that a 0.5 percent global sulfur cap on marine fuel will be implemented from 2020 - a decision that promises to be one of the most influential forces to shape bunker markets over the next decade and beyond.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
Popular Now More
-
May 16The company is targeting 30-50% growth from this level of traded volumes in 2024, and in Q1 already saw 35% growth from the same period a year earlier, an Oilmar representative tells Ship & Bunker. -
May 16The ISO 8217 specifications last had a new full version published in 2017. -
May 17The new hire had previously served as a bunker trader for 24/7 Bunkers in London.