Singapore: Volatile oil prices continue to confound many analysts, with conflicting reports on second-half trends adding extra uncertainty and further question-marks for those seeking to hedge bunker prices.
Singapore prices for 380 cSt fuel shot up on Friday, closing at $431.40, up $22 on the week, an increase of more than 5%. Over the last two weeks, heavy fuel costs have risen by more than 11%. Meanwhile, Shanghai's average price of $432 for the month so far is up by more than 53% on the average of $281.50 for March. But some oil analysts are predicting that prices may come tumbling down over the balance of the year, bringing good news for ship operators.
Phill Flynn, a senior market analyst with PFGBest's Research in the US, spoke at a Chicago Board of Trade commodities outlook meeting earlier this week. Quoted by Reuters, he said Nymex crude could slip as low as $35 from today's $67 in the coming months if the US economy and the dollar both strengthen, he said. [24/07/09]
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