Crude Markets Show “Stabilized Volatility”, Prices Sink Slightly Lower

  In this week’s As the Oil Pump’s: With holidays in a number of locations on Monday and Tuesday there was limited trading done on the world’s commodity exchanges.  Along with limited volume, comes higher volatility as it is easier for market players to move the market in one direction or the other.  At the beginning of the week we saw markets moving up anticipating stimulus world wide, but by the end of the week it was clear that the United States is not currently planning on running the printing press. What is also clear is that Iran’s budget is largely dependent on oil prices.  This of course comes as no surprise, but it was very interesting to see that once Brent went below $100 bbl they immediately began “saber rattling” about their nuclear ambitions and the coming meeting to resolve the embargo against them. By the end of the week though, sovereign debt concerns trumped everything and real concerns over the economies of the world exist.  As expected the KPI Bridge Oil Composite shows further decline and continues to reach new lows for the year each week and is currently at $672.69 MT. About the KPI Bridge Oil Composite The KPI Bridge Oil Composite is a calculated fuel number based on 14 ports strategically positioned worldwide.  It is calculated on a weekly basis blending 90% fuel oil prices with 10% distillate prices.  The idea behind the number is that it would represent actual fuel costs on a global basis and what vessels would consume on average.  This number will not fluctuate as quickly as daily prices and can easily be hedged or used for voyage calculations.    

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Tagged with: bunkerbunker fuelkpi bridge oil   About The Author

KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favorable terms. Visit Authors Website →    

Crude Markets Show “Stabilized Volatility”, Prices Sink Slightly Lower

By KPI Bridge Oil On Stabilized-volatility would be the most accurate description of the oil markets this past week.  Overall crude prices closed down only about $1 bbl this week; but we have seen them down several dollars at different stages throughout the week and during each trading day.  While the KPI Bridge Oil Composite continues to go down,  fuel oil and gas oil prices are just getting in line with the overall market trend of the last several weeks.  It would not be unreasonable to expect bunker prices to stabilize next week barring any major change in the crude markets. It is amazing to see how volatile operational costs have become for ship-owner’s and charterer’s.  In this month alone,  we have seen the KPI Bridge Oil Composite go down over $57 MT.  For a vessel burning 20 MT per day that represents decrease of $1140 to daily operating costs.  With changes like this,  a spot charter can go from a winner to a loser quickly, and visa-verse. With a short week next week, we should all prepare for a lot more volatility.  Offices in the United States will be closes on Monday 28 May in observance of Memorial Day. About the KPI Bridge Oil Composite                                                                                    The KPI Bridge Oil Composite is a calculated fuel number based on 14 ports strategically positioned worldwide.  It is calculated on a weekly basis blending 90% fuel oil prices with 10% distillate prices.  The idea behind the number is that it would represent actual fuel costs on a global basis and what vessels would consume on average.  This number will not fluctuate as quickly as daily prices and can easily be hedged or used for voyage calculations.

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Tagged with: bunkerbunker fuelkpi bridge oil  
About The Author

KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favorable terms. Visit Authors Website →  
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Facebook IPO Brings Bunker Prices Down!

By KPI Bridge Oil On Ok, that would be a very difficult, but a “provable” hypothesis, as the fact is bunker prices are down and we did have the much anticipated Facebook IPO this week. On a more serious note it was a very busy week in the oil markets.  Continued sovereign debt problems in Europe is translating to worries about the world economy and rightfully so.  The Seaway Pipeline reversal coming to fruition is converging Brent and WTI, while bringing down prices.  Greece’s debt rating was brought from BB- down to CCC. Put all this together and it creates another 3% decline in the KPI Bride Oil Composite.  Over the past two weeks we are looking at a serious price differential in bunker prices.  Since the March 1 high this year we are down almost 10%.  While this is not creating profits for ship owners and charterers it is a much needed reprieve to what has been oppressive prices.  All indications are that this trend is not going to change near term, but there are looming threats to it that could very easily bring us back to higher levels.  The bunker buyer should be exercising cautious patience meaning; waiting to purchase, but always watching the market for sudden moves and knowing the avails situation for any particular port. About the KPI Bridge Oil Composite                                                                                                     The KPI Bridge Oil Composite is a calculated fuel number based on 14 ports strategically positioned worldwide.  It is calculated on a weekly basis blending 90% fuel oil prices with 10% distillate prices.  The idea behind the number is that it would represent actual fuel costs on a global basis and what vessels would consume on average.  This number will not fluctuate as quickly as daily prices and can easily be hedged or used for voyage calculations.

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Tagged with: bunker fuelkpi bridge oil  

About The Author

KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favorable terms. Visit Authors Website →  
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Could Oil Supply and Demand be Returning? WTI Under $100 BBL!

By KPI Bridge Oil On It was a wild ride in the oil markets this week as crude prices fell off of a cliff today and WTI is now lower than $100 BBL.  While the KPI Bridge Oil Composite actually increased over the last week this was due to residual fuel costs rising out of line with crude prices.  It should come as no surprise next week if it is much lower. The main impetus for lower oil prices this week has been slowing economies of the world.  The jobs reports were worse than expected both here and overseas, Spain has announced they are officially in recession and manufacturing data was worse than expected. All of these items have created a lot of doubt over future demand.  While this is not a good sign for global economies, it is good to see some rational thought returning to the commodities markets.  It is however unlikely that we will see a tremendous decline until the situation in Iran is sorted. About the KPI Bridge Oil Composite                                                               The KPI Bridge Oil Composite is a calculated fuel number based on 14 ports strategically positioned worldwide.  It is calculated on a weekly basis blending 90% fuel oil prices with 10% distillate prices.  The idea behind the number is that it would represent actual fuel costs on a global basis and what vessels would consume on average.  This number will not fluctuate as quickly as daily prices and can easily be hedged or used for voyage calculations.

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Tagged with: bunkerkpi bridge oil   About The Author

KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favorable terms.  

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Bunker Fuels Show a Downward Trend, but Decline Should Have Been Greater [REPORT]

By KPI Bridge Oil On April 13, 2012 KPI Bridge Oil Composite 5 April – 12 April 2012 Despite a tremendous amount of continued volatility bunker prices are clearly trending downward at this point.  This week the KPI Bridge Oil Composite was down over $8 MT.  However, it is clear that supply and demand fundamentals are not the main factor in the global energy price equation.  There were many news items this week that should have caused a much greater declines in oil prices. China’s annual growth numbers were 8.1% which is down from 8.9% and it is much less than expected.  The number two oil consuming nation is watched very closely by all energy traders and speculators as declines there could very quickly trigger a collapse in all commodity prices.  Additional impetus for much lower prices is that consumer sentiment has been down and jobless claims up in the United States signaling a weakening of the US economy. What is clear is that the world economies can not support these high energy prices, but until the situation with Iran is resolved we should expect volatility and inflated prices.  The good news about that situation is that the United States, Russia, China, Britain, France and Germany are all slated to meet with Iran in Istanbul tomorrow.  This is a major step in the right direction towards diplomacy as it has been 15 months since the last meeting of all these nations.  While we should not expect Iran’s quest for nuclear weapons to end overnight; it is not unreasonable to expect some resolution for Monday. KPI Bridge Oil Composite The KPI Bridge Oil Composite is a calculated fuel number based on 14 ports strategically positioned world wide.  It is calculated on a weekly basis blending 90% fuel oil prices with 10% distillate prices.  The idea behind the number is that it would represent actual fuel costs on a global basis and what vessels would consume on average.  This number will not fluctuate as quickly as daily prices and can easily be hedged or used for voyage calculations.

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    About The Author

KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time.  

Bunker Prices Show Decline, Let’s Hope the Trend Continues [REPORT]

By KPI Bridge Oil On March 30, 2012 23 March -29 March 2012 We had a very strange and difficult week in the oil markets this week, but ship owners and charterers will be glad to see a decline in the overall market trend.  Many of the asset managers world wide were profit taking this week ahead of the quarters end. What does this mean to the oil markets? Well it means a short reprieve in extremely elevated prices and for sure more money inflows in the coming weeks pushing prices even higher.  We are quickly approaching levels that will harm the economies of the world, but it is very much a slippery-slope.  As global monetary policy experts are keeping interest costs low this is in turn devaluing currencies and moving commodities higher.  At some point something will have to give, either energy prices become unreasonable or growth accelerates.  Only time will tell. Now with all that being said,  currently the potential remains much more likely for higher energy prices than lower.  With the constant “saber rattling” between many countries of the world and Iran any conflict there will ignite the oil powder keg and we will see oil prices that have never been seen before.  This will happen even though there is more extra oil around than ever before.  Supply and demand does not exist in the energy markets any more and it is now driven by headlines and threats. Bunker prices overall have declined this week and we hope that trend continues.  Panama remains tight on availability and large requirements have been difficult to cover in a timely manner.  The KPI Bridge Oil Composite was down $2.25 MT. KPI Bridge Oil Composite The KPI Bridge Oil Composite is a calculated fuel number based on 14 ports strategically positioned world wide.  It is calculated on a weekly basis blending 90% fuel oil prices with 10% distillate prices.  The idea behind the number is that it would represent actual fuel costs on a global basis and what vessels would consume on average.  This number will not fluctuate as quickly as daily prices and can easily be hedged or used for voyage calculations.

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Tagged with: bunker fuelkpi bridge oil About The Author  KPI Bridge Oil KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favorable terms.
     
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