Trasformer AD
Trasformer AD

Bunker prices to cross $1000 per tonne

VLFSO prices have reached new highs as a result of a sharp rise in oil and gas prices in early Monday trade.
Facebook
Twitter
LinkedIn
WhatsApp
Email

VLFSO prices have reached new highs as a result of a sharp rise in oil and gas prices in early Monday trade.

Brent crude hit a new high of $139 per barrel before pulling down, while gas prices hit a new high of 800p per therm, eclipsing the previous high of 485p per therm by a wide margin. The dramatic rise in costs came as a result of reports that the US is leading talks to prohibit the import of Russian oil and gas, a move that would disproportionately affect EU members.

Fujairah is the first major bunkering port to cross the $1,000 mark according to figures from Ship&Bunker. Corresponding VLSFO prices in Singapore also surged to $981 per tonne having eased back to $892.50 on Friday.

The cost of VLSFO in Rotterdam jumped some 14% on Monday to hit $945 per tonne, having already climbed more than 14% in the previous week to hit $828.50 on Friday.

Houston prices have risen by 10.4%, from $852 to $933.50 per tonne.

Scrubber-fitted vessels save close to $250 per tonne

According to Ship&Bunker data, the difference between VLSFO and heavy fuel oil continued to expand last week, favouring owners who installed scrubbers. On Monday, the global average of VLSFO prices in 20 bunkering ports increased by 12% to $962.50 per tonne. Meanwhile, heavy fuel oil prices rose to $714.50 a barrel, an increase of less than 11% on a global basis.

This is a large price difference of $248 per tonne on average between VLFSO and HFO, resulting in a significant cost savings for scrubber-equipped vessels.

Brent crude has slipped back to $122.50 by late afternoon London time yesterday, and West Texas Intermediate was trading slightly around $117.50.

Experts said the extreme volatility over the day was a clear indication of deep unease about the global energy backdrop. The general view is that prices will continue to climb, constituting a key factor likely to knock several points off global growth this year.

Facebook
Twitter
LinkedIn
WhatsApp
Email

Subscribe to Our Newsletter

Share your views in comments

AR-627903_Web banner_Maritime Gateway_300x200

Gateway Media Private Limited
Join Our Newsletter

Latest Issue