US turmoil plunges bunker markets into chaos

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US turmoil plunges bunker markets into chaos Maritimepress(korea) / 2001-09-13

News : US turmoil plunges bunker markets into chaos Bunker markets were described as "completely mad" on Tuesday as crude prices soared following the astonishing suicide plane attacks in the US.

BP, ExxonMobil and other major suppliers withdrew their quoted ship fuel prices as news of the devastating events unfolded.

A broker at Gibson in London said there had been knee-jerk reactions in Rotterdam and other keys ports, which pushed prices up as much as $25 per metric tone to $155/$165.

Shipowners were struggling to find anyone to buy from in Europe.

"There are places to buy, but it's going to be expensive," he said. "We can still do the Suez Canal."

He added: "It's too early to say whether this can be sustained."

The attacks sent crude oil prices for October surging up $3.55 to more than $31 at one point.

"We've been very busy here," said one ship fuel broker.

"BP and ExxonMobil have withdrawn their price quotes and we have advised anyone with a deal waiting to be completed to get it done as quickly as possible.

"It is very difficult to get quotes now because people just don't know what is happening."

And some shipbrokers were predicting a further sharp increase in VLCC rates as uncertainty gripped the market following the horrific attacks in New York and Washington.

VLCC rates had already been under upward pressure earlier on Tuesday as charterers tried to fix tonnage ahead of Persian Gulf cargo nominations on 17 September.

Japanese interests took a vessel at WS 72.5 for lifting in October and other deals have been done at WS 70, brokers said.

"It's only speculation and it's incredibly early to say, but you could see charterers coming in immediately to cover positions," said one.

"Some were still in vulnerable positions earlier today and this will fuel the fire considerably."

But others said the effect of the incidents might not be seen for another week.

http://www.maritimepress.com/english/asp/mis/search/view.asp?num=37147.73706018520&code=see1

-- Martin Thompson (mthom1927@aol.com), September 15, 2001

Answers

In my 1975 book, ENERGY FORECAST TO 1990, I predicted--wrongly--that another energy crises would drive us over the edge by the end of that period. Only a minor recession ensued.

This time--hate to say it--but I have much more confidence this will soon occur. Let's hope I'm wrong again.

-- JackW (jpayne@webtv.net), September 16, 2001.


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