Flat prices of bunker fuel in the Mediterranean reached their highest level in 17 months Monday, following a spike in crude oil.
The price of 380 CST bunker fuel at Piraeus, Greece, was assessed at $312/mt delivered and at Istanbul, Turkey, at $325/mt on Monday, the highest levels since July 23 2015 and July 15 2015 respectively.
The price at Malta was assessed at $310/mt delivered Monday, its highest since July 15 2015.
ICE Brent settled at $55.90/b Monday, its highest since $56.19/b July 23 2015.
Crude oil pushed higher Monday after Saudi Arabia and Russia spearheaded finalization of the first global crude supply pact in 15 years.
Russia and other non-OPEC countries declared they would be willing to reduce crude oil output by 558,000 b/d collectively in the first half of 2017. This would take total OPEC and non-OPEC production cuts agreed for H1 2017 to almost 1.8 million b/d.
ICE Brent played the main role in supporting bunker prices. Bunkering demand was stable to firm at most Mediterranean ports.
There were localized bullish factors supporting values at Istanbul. Stocks have depleted after a period of suppliers at the port trying to compete with nearby ports, such as Piraeus, sources said.
