Ukraine and Russia: The cost of fuel reflects the most immediate impact on shipping of the conflict. However, in the weeks ahead, analysts predict a broad fallout from Russia’s aggression which has generated widespread condemnation and protests too from ordinary Russian people.
The bunker price hikes did not mirror the leap in spot crude prices which saw Brent breach $105 and West Texas Intermediate flirt with $100 yesterday, increases of around 8%. Global average bunker prices across 20 bunkering ports, compiled by Ship&Bunker, clocked the price of very low sulphur fuel oil (VLSFO) yesterday at $774, up almost 3% on Wednesday’s $752 figure. Conventional heavy fuel oil (HFO) prices rose by a similar margin, with the 20-port average climbing to $597.
However, the averages disguised marked regional differentials. VLSFO prices in Rotterdam shot up 4.5% to hit $731.50, but only 2.3% in Singapore, settling at $769. Corresponding HFO prices rose by close to 6% in Rotterdam, ending up at $559, but climbed 3.6% in Singapore, to $597.
Spot oil prices at 1000 hrs London time on Friday morning had eased back, with Brent pitched at about $100 and West Texas Intermediate at $93.50. However, these are still the highest energy prices since 2014 and reflect an increase of more than 60% since February 2021 when the average price of Brent crude was $62