MABUX: Global Bunker Market To Maintain A Firm But Highly Volatile Trend In November

October’s global bunker market remained under strong geopolitical and supply-side pressure. Middle East tensions, disruptions to oil product flows, tight regional fuel availability and rising LNG prices continued to support bunker quotations.

• Middle East Conflict: Continued instability around the Strait of Hormuz sustained elevated geopolitical risk premiums, freight costs and bunker price volatility. • Crude Oil Supply Constraints: Disrupted Gulf oil exports, limited supply flexibility and higher transportation costs maintained upward pressure on crude and marine fuel prices. • Tight Distillate Supply: Restricted gasoil availability and strong refinery margins continued to support MGO LS prices, widening premiums over residual bunker fuels. • Regional Fuel Imbalances: Limited HSFO and VLSFO availability, particularly in Asian bunkering hubs, contributed to significant regional price differentials and changes in scrubber spreads. • Higher Bunker Transportation Costs: Elevated tanker freight rates constrained fuel arbitrage flows between Europe and Asia, increasing supply pressure in major bunkering hubs. • Rising LNG Prices: Tight global LNG supply, stronger European gas prices and seasonal demand expectations reduced LNG’s competitiveness against conventional marine fuels. • Alternative Fuel Transition: Continued expansion of dual-fuel and battery-powered fleets supported the longer-term diversification of marine fuel demand, although high alternative fuel costs remained a constraint.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →