The soaring price of bunker fuel is squeezing the earnings of shipowners, with many now struggling to cover their operating costs on a number of important routes. Oil production cuts made by OPEC, Russia and its allies to rebalance the market have resulted in 1.8 million fewer barrels per day in production for October 1, 2016 to September 30, 2017, driving the price of crude oil up steeply as a result. Shipowners are now resorting to economies of scale to keep costs down, with many limiting their fuel purchases to the bare minimum needed to get to the next port.
The soaring price of bunker fuel is squeezing the earnings of shipowners, with many now struggling to cover their operating costs on a number of important routes. Oil production cuts made by OPEC, Russia and its allies to rebalance the market have resulted in 1.8 million fewer barrels per day in production for 2018, driving the price of crude oil up steeply as a result. Shipowners are now resorting to economies of scale to keep costs down, with many limiting their fuel purchases to the bare minimum needed to get to the next port.