THE shipping industry is beginning to feel the effect of surging diesel and gasoline prices, reports Bloomberg News.
The soaring margin of fuel is making their production more attractive, resulting in tighter supplies for the maritime sector.
The cost of marine fuel in Rotterdam peaked at the highest since late 2019 recently, up 23 per cent since the beginning of the year.
'its one more reason why global commodity prices and inflation are so high,' said Wood Mackenzie Ltd analyst Mark Williams.
The main reason has been due to a rally in crude oil, which is used to make most marine fuel.
However, in Europe, the price of 0.5 per cent marine fuel has climbed quicker than crude. That's because of tight supplies due to the region's strong diesel market.
Europe's very low sulphur fuel oils (VLSFO) market has also been supported by an opportunity that led to cargo leaving the region to fetch better prices in Asia.
That reason, combined with low refining runs, also tightened supply.
SeaNews Turkey
The soaring margin of fuel is making their production more attractive, resulting in tighter supplies for the maritime sector.
The cost of marine fuel in Rotterdam peaked at the highest since late 2019 recently, up 23 per cent since the beginning of the year.
'its one more reason why global commodity prices and inflation are so high,' said Wood Mackenzie Ltd analyst Mark Williams.
The main reason has been due to a rally in crude oil, which is used to make most marine fuel.
However, in Europe, the price of 0.5 per cent marine fuel has climbed quicker than crude. That's because of tight supplies due to the region's strong diesel market.
Europe's very low sulphur fuel oils (VLSFO) market has also been supported by an opportunity that led to cargo leaving the region to fetch better prices in Asia.
That reason, combined with low refining runs, also tightened supply.
SeaNews Turkey
