A lot of news this week, but not much total change in oil prices. Minute by minute volatility is the only constant we have in this market. While it is more of the same news, a lot if the news items people have been speculating about have cemented. The Spanish bailout happened, the market went down. OPEC maintained their current production quotas, the market went down. We reached the lowest level for oil prices since October 2011 this week.
But by the end of the week, we were inching upward perhaps signaling the end to the precipitous decline in oil prices we have seen over the last couple of months. All eyes are on the Greek election scheduled for Sunday and the potential for further Federal Reserve Stimulus in this country. Things will certainly be clearer by the end of next week when these items are answered. Bunker prices have remained mostly stable around the world.
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.