BUNKERWOLRD: Bunkers markets see limited movement amid rangebound crude
29th July 2022 15:45 GMT

Bunker fuel prices showed limited movement in the week to July 28, amid uncertain signals from crude and diverse fundamentals in marine fuel markets.

The S&P Global Commodity Insights Bunkerworld 0.5% sulfur fuel oil index ended the week at $878/mt, up $1/mt on the day, down $15/mt on the week and $187/mt lower than 30 days previously,

The BW380 index, which represents value for 3.5%S sulfur fuel oil, ended the week at $575.50, up $8.50/mt on the day, up $10/mt on the week and $108/mt lower than 30 days previously.

Crude oil futures have been largely rangebound as investors await fresh pricing cues while inflationary and recessionary fears counter tight supplies.

In the shipping industry, carbon emissions from the international fleet have continued to rise this year with growth in "nearly all" sectors, according to London-based shipbroker Simpson Spence Young, better known as SSY.

Citing estimates from Marine Benchmark, an SSY affiliate and data partner, the shipbroker said international shipping's carbon emissions were on an upward trajectory over January-June and have surpassed 850 million mt on an annualized basis.

Without further control, maritime emissions could increase by 30% from 2008 levels by 2050, the International Maritime Organization said.

In regional markets, following severe weather events during most of July which subdued bunker demand, Zhoushan's suppliers are expected to intensify price competition and capture market share and there has hence been a pickup in demand since late-July, according to a local trader.

Despite a drop in European 3.5%S fuel oil demand on the week, suppliers in Amsterdam-Rotterdam-Antwerp ports said inquiry levels were roughly 30% above normal seasonal levels. Surplus demand was said to have come from vessels that would previously have bunkered in Russian ports, and low availability elsewhere in Northwest Europe

ARA ports remain some of the only locations in Northwest Europe with good 3.5%S fuel oil supply, commanding a $163/mt discount to Hamburg and a $150/mt discount to Gothenburg as a result.

In the US, sources continued to talk of weak demand on the Gulf and East coasts, but supply in Houston and New Orleans was described as plenty while it remained tight in New York.

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 ,
29th July 2022 15:45 GMT