Vitol Warns Bunker Fuel Crisis to Persist Despite Crude Increase
Vitol warned that increasing crude through Hormuz will not solve the high-sulfur bunker fuel shortage, as Gulf supplies fall by 800,000 tons per month and Singapore prices rise.
Kieran Gallagher, Vitol's Asia head, warned that moving more crude through the Strait of Hormuz will not resolve the high-sulfur bunker fuel shortage.
Gallagher said that "more crude does not necessarily mean more high-sulfur fuel oil," as reported by Bloomberg via gCaptain.
He pointed out that the conflict in the Middle East is reducing fuel oil supplies from the Gulf by about 800,000 tons per month, while Ukrainian strikes on Russian refineries cut an additional million tons per month.
In Singapore, high-sulfur bunker fuel prices reached their highest level since April.
What do these terms mean?
High-Sulfur Fuel Oil (HSFO): A heavy fuel used by many ships, derived from fuel oil and containing a high sulfur content.
Fuel Oil: A heavy petroleum product left over from refining operations, used in ships, power plants, and some factories.
Bunkering (Bunker): The process of fueling a ship at port, the cost of which rises when prices increase at bunkering hubs like Singapore.
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