World News
Downturn Sparks Bunker Industry Mergers and Acquisitions Interest
The dire economic outlook for oil and shipping looks to have boosted interest in mergers and acquisitions opportunities within the bunker industry.
Two separate bunker players have told Ship & Bunker they are actively looking to make acquisitions, and at least one unrelated company is understood to be close to a deal to sell up.
"These are difficult times so for those that can, it's a good time to buy," a business development manager with an Americas-based bunker company told Ship & Bunker.
While not all shipping sectors have been affected by measures taken in response to the COVID-19 pandemic, Ship & Bunker last month assessed that short-term marine fuel demand has dropped around 8% while veteran marine fuels consultant Robin Meech sees global bunker demand for 2020 as a whole down 7% vs 2019.
With EIA this week lowering its 2020 oil price forecast over 20% from the outlook last month, and Thursday's historic production cut failing to lift prices, bunker prices also look set to be depressed at multi-year lows for some time.
"We are at the beginning of what looks like it will be a very difficult time for the industry, so it really is no surprise that some people are now looking to exit the market gracefully while they still can," the source said.
About Martyn Lasek
Martyn is the Founder and Managing Director of Ship & Bunker, the world’s most read marine fuel-focused publication.
With a career building information systems and online publishing spanning over 25 years, he has been providing critical information to the bunker industry since 2002.
Martyn is based in Vancouver, Canada.
About Ship & Bunker
Ship & Bunker is the world's most read publication focused on the marine fuel markets. Completely independent, it is the leading industry authority providing comprehensive daily news, exclusive in-depth features and analysis, along with daily & historical bunker price indications.
To contact the editor responsible for this story email us at editor@shipandbunker.com
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 556.50 | 9.00 | 685.00 | 6.50 |
| Rotterdam | 506.00 | 6.00 | 665.00 | 11.00 |
| Houston | 552.50 | 0.50 | 682.00 | 4.00 |
| Fujairah | 548.00 | 7.50 | 750.00 | 3.00 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
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