Bottom of the Barrel

As the public continues to complain about high gasoline prices, there is an analogous sentiment heard among some ship owners and charterers regarding the cost of both light and heavy fuel for ships. It is logical that the price of products would increase with increases in the price of crude, but not as logical that one type of fuel would increase more than another. As gasoline demand continues to climb, and refiners continue to favor lighter distillates in order to capture the high margins, the supply of heavier products is likely to decline leading to even higher fuel bills for ship owners.