Mideast war alters global bunker buying patterns, industry execs say
Marine fuel prices remain more than 70% above pre-war levels according to bunker traders, forcing global shippers toward spot purchasing and shorter-term contracts.
- Singapore sold over 4.7 million tonnes of marine fuel in September, a 1 per cent decline from the previous month despite increased vessel arrivals. The drop reflects global disruptions from the conflict with Iran.
- Marine fuel prices remain over 70% above pre-war levels, according to bunker traders, driven by seven months of conflict with Iran. Shippers face restricted physical availability and volatile pricing, forcing operational changes.
- Choong Zhen Mao, executive director at Singapore-based Equatorial Marine Fuel, said contract durations have shortened to a quarter or month. Owners now prefer spot purchases to manage daily price swings rather than locking in longer terms.
- "Around the Arabian Gulf in particular, traditional bunkering patterns are being torn apart," said Peter Grunwaldt, chief executive officer at Seascale Energy. Shippers now frequent Port Louis, Colombo, and Salalah to avoid hostilities near Fujairah.
- Vitol's Head of Asia Kieran Gallagher said, "Diversification is essential, both to manage today's disruptions and to build longer-term resilience." The company began bunkering at Gwadar Port in Pakistan to serve regional customers.
15 Articles
15 Articles
Today, Friday, shipping officials confirmed that the US-Iran war led to significant changes in global ship fuel procurement patterns, with shipping companies increasingly relying on immediate and short-term purchases to cope with sharp price fluctuations and ensure greater flexibility in supply management.
Mideast war alters global bunker buying patterns
The US-Israeli war on Iran has altered bunker buying patterns for shippers globally as they turned to more spot and shorter-term purchases to cope with volatile prices while exploring more...
Mideast war alters global bunker buying patterns, industry execs say
By Jeslyn Lerh SINGAPORE, Oct 16 (Reuters) - The US-Israeli war on Iran has altered bunker buying patterns for shippers globally as they turned to more spot and shorter-term purchases to cope with volatile prices while exploring more alternative locati...
<p>Iran attacks tankers, but the flow of oil through the Strait of Hormuz unexpectedly increased In October, more than 12 million barrels of oil were transported through the strait daily. Since the beginning of the month, 26 ships have been attacked</p>.
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