Bunker market sales in the key refuelling Port of Singapore increased more than 11% according to the Maritime Port Authority which recorded sales of 4,322tonnes of fuel in March compared to 3,879tonnes in February 2020.
The February figure was a significant decline from January’s 4,514tonnes, but in the context of an economic slowdown caused by the global pandemic and amid substantial service cuts from container shipping lines in response to the reduction in trade, the Singapore figures are a surprise.
On the global average the prices of marine fuels have stagnated as the price of crude has settled, for the moment in the mid-US$20/bbl for WTI and low to mid-US$30’s for Brent Crude. Though with ongoing discussions among the OPEC and non-OPEC producers the volatility in the price of crude, and therefore the price of bunkers, could well return.
On Friday, 10 April, Reuters reported that Russian Energy Minister Alexander Novak expected oil production cuts by countries outside of the OPEC+ group to amount to 5 million barrels per day.
“We believe that, in addition to the 10 million barrels (per day), which was undertaken by OPEC+, there would be another 5 million barrels (per day) from oil producers outside of OPEC+,” he told Russian state television channel Rossiya-24.
Cuts in production are widely expected to result in the price of crude rising substantially, though the cost of crude remains stubbornly low at present.
