Price volatility in the key north European bunker fuel market of Rotterdam has fallen by over 5 percentage points in the last week to its lowest level in four months, according to analysis by S&P Global Platts.
Rotterdam bunker fuel volatility falls to four-month low Price volatility in the key north European bunker fuel market of Rotterdam has fallen by over 5 percentage points in the last week to its lowest level in four months, according to analysis by S&P Global Platts. Based on daily delivered RMG 380 CST Rotterdam bunker prices, volatility dropped to 42.7% from a measure of 48.2% a week ago. Last month, it was running higher at 54.43%. The oil market saw volatility peak in January/February across many types of crude and refined products, when it appeared that the crude price fall that began in July 2014 appeared to have bottomed out, and larger positioning took place. Front-month ICE Brent futures volatility peaked in February, briefly touching 70%, but since then has declined, remaining fairly stable over the last month around 40-45%, even as the outright price has continued to climb. Fuel oil and bunker fuel similarly had a peak in volatility in January/February. FOB Rotterdam 3.5% barges peaked in volatility above 90%, before declining to under 50% in the latest week, its lowest point so far this year. Delivered 380 CST Rotterdam bunker fuel volatility peaked at over 80% in late January/early February, then declined into the 50-60% range through March and April. In May, Rotterdam bunker volatility has fallen yet further than crude. Platts calculates monthly volatility using historical daily assessments over a trailing window of 22 working days. Market volatility is expressed in percentage terms by convention. A higher percentage equates to greater volatility in the market and parallels increased unpredictability in price direction.
