Bunker prices have continued to soar to new record highs, prompting resistance to low rates among tanker owners. Marine Bunker Exchange (Mabux) is citing very low-sulphur fuel oil (VLSFO) up nearly 10% in a day at $795 per tonne on average around the world. High sulphur bunkers are down 2.65% at $616 per tonne, which is good news for owners of vessels with scrubbers as the price spread to VLSFO widens, while marine gasoil is unchanged at $909.50.

The averages hide big regional variations, with South American suppliers selling VLSFO at $850, while ships in Asia can pay $754 and just $728 in northern Europe. The price of ship fuel has been one of the factors behind a recent rise in tanker rates from all-time lows, as owners demanded better numbers from charterers, emboldened by disruption and uncertainty arising from Russia’s war in Ukraine, brokers and analysts have said. Mabux said geopolitical tensions and global market instability could send bunker prices even higher, with rises of up to $15 per tonne tipped for VLSFO in the coming days. The rises are being propelled by higher crude oil prices. Brent hit $113 per barrel on Wednesday, up $8, the highest level since 2014. WTI crude futures earlier closed above $100 per barrel for the first time in seven years. The gains came despite the International Energy Agency announcing on 1 March that it would organize a release of 60m barrels of oil from strategic reserves. This will prove “there will be no shortfall of supplies as a result of Russia’s invasion of Ukraine”, the agency said.

As the spread widens between low and high sulphur fuel, Clarksons Platou Securities has estimated a premium of $10,300 per day for VLCCs fitted with scrubbers. VLSFO in South America was at record highs, with high sulphur fuel and gasoil at levels not seen since 2013. Low sulphur bunkers jumped $43 in a day on 1 March to $816 per tonne in Balbao, Panama. “Some people are holding [fuel purchases] until tomorrow, which in my opinion is a bad idea. Market is poised to continue rising, plus it is very tight in avails for high sulphur fuel oil and VLSFO,” a market source at the port told the Platts news agency. Supplies of high sulphur fuel are expected to be constrained because Russian M100 oil will not be able to reach the US Gulf coast for now, the source added. In Callao, Peru’s main port, marine gasoil spiked $70 in a day to $1,150.