How is Ukraine Crisis Affecting the Bunker Companies

216

High oil prices may be good for margins but are not good for any of us from a credit and financing standpoint, reports Ship&Bunker quoting an analysis by Chris Morgan, global head of credit at Delta.

Shocking upwards of oil price indexes

The first thing that most of us will see in terms of an effect will have already started: the shocking upwards of oil price indexes as the market panics. Brent reached a seven-year high at over $97/bbl and looks likely to hit the three-figure mark in the next few hours or days trading.

That is bad news for the smaller bunker traders and suppliers with limited capital to finance them. High oil prices may be good for margins but are not good for any of us from a credit and financing standpoint.

High oil prices will mean storage stocks will diminish as their holders seek to cash in, with clear and present further implications for the tanker market at large.

Then the high oil price means moving things by sea becomes more expensive, and this will further increase the bloated container rates see saw in 2021. Consumer goods and filling the car up with petrol will become more expensive again.

Taking Ukraine out of the reckoning for bringing grain and associated agribulks to market will drastically affect price indexes of these commodities.

Read more here.

Did you subscribe to our daily Newsletter?

It’s Free! Click here to Subscribe

Source: Ship&Bunker

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.