Mideast war alters global bunker buying patterns, industry execs say
By Jeslyn Lerh SINGAPORE, Oct 16 (Reuters) The US-Israeli war on Iran has altered bunker buying patterns for shippers globally as they turned to more spot and shorter-term purchases to cope with volatile prices while exploring more alternative locations for supply security, industry executives said. More than seven months since the start of the conflict with Iran, prices of marine fuels remained well over 70% versus pre-war levels, according to data from bunker traders. Rerouting and diversions of vessels due to blockades at key waterways in the Middle East have also driven shippers to diversify refuelling locations, making them less inclined to lock in a longer-term contracts at one particular port, the executives said. The frequency of stems (spot purchases) is getting higher because a lot of owners will bunker the minimum to reach the next port if the market shoots up, said Peter Grunwaldt, chief executive officer at Seascale Energy and head of bunkering at tanker company