The closure of the Strait of Hormuz to all but a few ships is causing concern among shipowners that bunker fuel could be in short supply if the conflict continues.
Bunker fuel prices are already around double the level in late February just before the conflict in the Middle East started but with 20% of the world’s crude oil coming from the Gulf region and transiting the Strait of Hormuz price is not the only issue.
SK Lim Managing Director Pacific for G2 Ocean commented that on 27 February, the day before war broke out in Iran, the bunker price was $525 per tonne for VLSFO in Singapore and had risen to over $1,100 per tonne in this week. The pull back of the US threat to bomb Iranian power infrastructure has had a positive impact though and according to Ship & Bunker VLSFO in Singapore stands at $894.50 per tonne having fallen $91.50 on Tuesday.