Bunker prices escalate as Hormuz crisis drags on
- Average VLSFO price at top 20 hubs is $882 per tonne, up 30% vs July low and up 69% y/y; average HSFO price is $749.50 per tonne, up 42% vs July low and up 64% y/y
- VLSFO-HSFO spread during Hormuz crisis has been twice as high as pre-crisis, reaching almost $200 per tonne in August
- Scrubber installations continue to increase, driven by newbuilding orders; 67% of existing VLCCs have scrubbers whereas 93% of VLCC newbuildings are due for installations
After a brief reprieve coinciding with the US-Iran peace MOU, bunker prices have headed higher again in recent months. Pricing of VLSFO and HSFO is back where it was in early April, sharply higher than pre-crisis levels
