OIL WTI was at $37-38/bbl when OPEC Abandoned Production Targets in late 2015 and this was the lowest price since 2009.....subsequently in early January 2016 the price further plunged to $29-33/bbl levels. At these levels a sharp increase in M&A activity is expected for oilfield services sector.
Such low price may entail some political risk in Saudi Arabia , as we have just seen the outcome in recent elections in Venezuela, whose economy was shattered by low oil prices besides other political factors. Oil prices will impact the equity markets!
This also means that shipowners/charterers may stem bunker fuel early to gain a competitive edge as timing of fuel purchase is another factor in saving costs in a depressed freight market
Bunker fuel forms about a third of a ship's running costs and so great care is required for getting the right specifications for the fuel to avoid damage to the ship's engines and auxiliaries.
Just a note to all shipowners that “slow steaming” nor only reduces fuel consumption but also CO2 emissions. Reducing ship speed by 10% will lead to a 27% reduction of the ship's emissions.
Singapore offers competitive bunker prices and we can also provide indicative quotes on request for 380 cst / 180 cst / MDO delivery FOB Singapore (as well as worldwide) .
12 Dec 2018 WTI at USD 52/- per barrel and looking firm.
Oil is expected to stay within a range of 50-60 for the medium term
24 Oct 2017 Oil Holds Gains Near $52 as U.S. Stockpiles Seen Extending Drop - Bloomberg
Oil WTI earlier was trading near $50 /bbl levels in October 2017 Outlook is sideways.
West Texas Intermediate (WTI), also known as Texas light sweet, is a grade of crude oil used as a benchmark in oil pricing This grade is described as light because of its relatively low density, and sweet because of its low sulphur content.