It was a wild ride in the oil markets this week as crude prices fell off of a cliff today and WTI is now lower than $100 BBL. While the KPI Bridge Oil Composite actually increased over the last week this was due to residual fuel costs rising out of line with crude prices. It should come as no surprise next week if it is much lower.
The main impetus for lower oil prices this week has been slowing economies of the world. The jobs reports were worse than expected both here and overseas, Spain has announced they are officially in recession and manufacturing data was worse than expected.
All of these items have created a lot of doubt over future demand. While this is not a good sign for global economies, it is good to see some rational thought returning to the commodities markets. It is however unlikely that we will see a tremendous decline until the situation in Iran is sorted.
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.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 109,835 members that receive our newsletter.
Have a news tip? Let us know.
A 37-year-old crew member was saved after spending three harrowing days adrift at sea following alleged abuse aboard a fishing vessel. Afif Efendy, a crew member of the fishing vessel...
British oil and gas major Shell on Tuesday settled a London lawsuit it brought against environmental group Greenpeace after activists boarded a Shell oil production vessel last year.
Satellite imagery show that Russian naval ships have left Moscow's base at Tartous on Syria's coast and some have dropped anchor offshore following the overthrow of Syrian President Bashar al-Assad by rebel forces.
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 109,835 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
