Bunker prices take another dip

Bunker prices are to continue their descent this week, experts say.

Oil prices steadied at the end of last week after a weaker dollar helped offset the negative impact of rising US stockpiles, which drove US crude prices to near three-month lows.

Crude oil stocks in the US rose unexpectedly 2.5 million barrels last week to above the five-year seasonal average, according to data from the Energy Information Administration (EIA), meanwhile a drop of 2.3 million barrels was expected.

Brent has lost around 12% in July, its largest one-month fall since March, mainly due to the constant oversupply of crude oil and it is expected to get worse, if and when sanctions against Iran are lifted.

The oil glut looks set to grow as an Iranian nuclear deal with the West is likely to release millions of barrels of additional supply onto world markets. The bears are still in control of the market.

Last week, the price of light crude oil was US$49.19 per barrel and Brent crude was $56.13. These compare with the all-time highs of light crude (WTI) at $147.27 (July 11, 2008) and Brent at $147.50 (July 11, 2008).

Source: Marine Bunker Exchange