BUNKERWORLD INDEX: Bunker prices rise amid firming crude, pockets of tightness
31st December 2021 11:15 GMT

Bunker prices trended upwards in the week to Dec. 30, supported by increasing confidence in the wider oil complex and by limited supply of marine fuel at some ports.

The Bunkerworld 0.5% sulfur fuel oil index ended the week at $621/mt, up $3/mt on the day, up $28/mt on the week and $46/mt higher than 30 days previously.

The BW380 index, which represents value for 3.5% sulfur fuel oil, ended the week at $486/mt, up 50 cents on the day, up $16.50/mt on the week and $37/mt higher than 30 days previously.

Crude oil and refined products futures have rallied amid thriving stock market indices and rising optimism that the omicron variant surge will not disrupt oil demand as much as previous coronavirus spikes.

At the end of December, the Asia-Pacific 3.5%S FO market was stable to slightly weaker as demand from scrubber-fitted ships and utilities remained muted amid ample supply. Demand from utilities in South Asia and the Middle East is not expected to pick up until March, S&P Global Analytics said Dec. 23.

In individual markets, Zhoushan-delivered marine fuel 0.5%S bunker values are expected to remain firm amid tightening 0.5%S FO inventories in the downstream delivered market.

Demand in the Northwest European bunker fuel market has been mixed, with the Amsterdam-Rotterdam-Antwerp hub quiet and availability of all grades good, traders said.

Latin America bunker markets expect an active start to the year after moving in a tight price range in the last week of 2021. In Panama, the port of Balboa has experienced low activity amid tight supplies, but participants expect renewed availability in early January, especially of high sulfur bunkers. Other ports in the region have seen stronger demand, including Buenos Aires and Cartagena, sources have said.

The BW Indexes are weighted daily indexes made up of price assessments at 20 key bunkering ports. To obtain a representative geographical spread, the ports were selected by size with reference to their geographical importance.

The BW 0.5% Sulfur Index ports are Hong Kong, South Korea, Shanghai, Singapore, Japan, Las Palmas, Durban, Fujairah, Gibraltar, Piraeus, Rotterdam, St. Petersburg, Houston, Los Angeles, New York, Balboa and Santos.

The BW380 Index ports are Busan, Canary Islands, Colombo, Durban, Fujairah, Gibraltar, Hong Kong, Houston, Los Angeles, New York, Offshore Nigeria, Panama Canal, Piraeus, Rotterdam, Santos, Shanghai, Singapore, St. Petersburg, Suez and Tokyo.

Click here to see prices: https://www.bunkerworld.com

Platts ,
31st December 2021 11:15 GMT