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Industry Note No. 27 - Bunker Price Forecast pdf

Individuals active in the shipping or oil industry are aware that residual fuel and bunker prices have been rising in recent years. In 2012, the basket of bunker prices that we track at major ports reached an all-time high of almost US $750 per ton in early March. This was influenced by an upward spike in crude oil prices combined with robust demand for power generation from various countries. Although prices have since subsided, bunker prices are anticipated to rise in the coming years. This increase will be in line with higher crude oil prices, but also tighter supplies due to secondary capacity additions and changes to the international crude slate. Tanker earnings will continue to be pressured, which will encourage owners to explore methods to boost fuel efficiency.