Prices are high, daily volatility is high and European bunker prices are above Singapore
VLSFO above $1,000/mt
Just four weeks ago we wrote about Singapore VLSFO prices being at an all-time high of $765/mt. Since then, Singapore prices have hit $1,027/mt and Rotterdam prices have been even higher at $1,109/mt. The reasons are obvious and bunker prices clearly continue to move around developments and expectations surrounding the war in Ukraine.
We can only look at the microcosm of our own markets within what are the more extreme, far-reaching and horrific events in Ukraine, but bunkers are a global market, with crude prices tending to underpin our sector.
Since hitting more than $1,000/mt on March 9th, VLSFO prices have eased back on the prospects of weaker Chinese oil demand because of the recent surge in covid cases and major city lockdowns. The potential for higher oil supply and the release of strategic stocks from other countries has also taken some sting out of the market. However, the war in Ukraine continues and we are still facing huge challenges operating in such a volatile and uncertain market.
Source: Integr8 Fuels