Despite
recent low bunker prices a significant proportion of marine fuel buyers
still do not have any risk management strategies in place to mitigate
anticipated price rises.
Two
thirds of LQM Petroleum Services clients polled in a webinar last week
(12 May) thought that marine fuel prices would rise in the next 12
months. But at the same time, only half the participants said that they
currently use risk management strategies to mitigate this risk.
“This
trend reflects the wider industry’s understanding of the tools
available to manage bunker price volatility,” said LQM Chief Executive
Daniel Rose. “But we were encouraged by the fact that three quarters of
participants on our call stated that they would be interested in locking
in today’s low prices.”
LQM
Petroleum Services is a hybrid bunker broker and trader which protects
itself from energy price changes by entering into fuel oil swap
agreements.
“We
fully understand the reluctance by some owners and charterers to enter
into the fuel oil futures market: it’s an area which leaves some
overwhelmed and those with relatively small clip sizes feeling
overlooked,” said Daniel Rose. “But we’re in the unique position of
being both a broker and experienced trader. We can guide potential
participants through the entire process and help clients manage their
specific hedging needs.”
He noted that the fuel swaps market has independent credible benchmark pricing, robust clearing solutions and good liquidity. “These are the fundamentals for a successful futures market,” he said.
Opinions
as to the duration of the current market volatility were less
clear-cut. 21% of the webinar participants thought that current
conditions would continue only for the next three months; 32% thought
between three and six months whilst 36% felt that six to 12 months a
more likely scenario.
Several shipowners, charterers and traders attended the webinar and responded to the poll.
No comments:
Post a Comment