Bunker and crude prices stabilized this week as better than expected earnings and moderately improving government data had speculators holding their ground. News that the French socialist presidential candidate, Mr. Francois Hollande, finished in first place during the first round of that county’s elections is creating concerns that the European debt problems may resurface or expand. Better than expected inventories this week also had the markets looking to go lower. Despite all this, corporate earnings continue to be better than expected and government data is indicating that the downward economic trend in the USA may be coming to an end. Put all these indicators together, and you get an oil market looking for more information and, therefore, direction. The KPI Bridge Oil Composite showed a change of less than one dollar per metric ton this week.
About the KPI Bridge Oil Composite
The KPI Bridge Oil Composite is a calculated fuel number based on 14 ports strategically positioned worldwide. It is calculated on a weekly basis blending 90% fuel oil prices with 10% distillate prices. The idea behind the number is that it would represent actual fuel costs on a global basis and what vessels would consume on average. This number will not fluctuate as quickly as daily prices and can easily be hedged or used for voyage calculations.