Alkagesta's August market insight, featured in Manifold Times, examined a dual supply crisis impacting global energy and bunker markets. The analysis focused on two simultaneous logistical pressures that are shaping fuel availability.
One pressure point is the stalled diplomatic process concerning the Strait of Hormuz. The other is the Rhine River, where water levels have fallen to a 140-year record low, affecting inland distribution.
Manifold Times highlighted several key findings from Alkagesta's report. Middle Eastern fuel oil imports into Singapore nearly tripled week-over-week, reaching 328,878 metric tons by July 29.
Additionally, Rhine barge capacity dropped significantly to only 15–20% of its normal operating levels. This reduction has implications for fuel distribution across Central and Eastern Europe.
The report also noted that the VLSFO Hi-5 spread reached a multi-year high of $225.93 per metric ton on August 3. This was attributed to an acute scarcity of low-sulfur blending components.
Alkagesta's strategic outlook suggests sustained tightness in prompt fuel availability throughout the third quarter. The company also indicated the potential for further disruption to Rhine-linked inland distribution.
