Market Outlook
Global oil demand is set to recover as vaccination programmes continue progressing, especially in developed economies. Overall demand is expected to reach 103.2 million barrels per day by 2025, up from 91 million barrels per day in 2020.
Travel corridors and western economies coming out of lockdowns are the main drivers and are pushing the price for distillates higher and higher.
Problem
In the last two weeks alone, the price for EU road diesel went up over 11% in CIF terms.
Price for ULSD rose 70% since October 2020, with ULSD 10ppm Cargoes CIF MED Futures breaking through the $560/MT threshold in August 2021.
Before this trend reverses we have to wait until Q1 22, with futures price starting to come back down and attesting above the $555/MT mark for the first half of next year.
Solution
A solution to off-set the impact of rising fuel prices on companies’ balance sheets is to shift over to spot transactions. Doing so as part of a purchasing pool helps companies’ negotiating position and drives down the fuel rates accordingly.
Opportunity
BLK pools the purchasing volume of multiple businesses across the UK and Italy. It recently negotiated a discount of – $15/MT on the Platts rates for ULSD with an Asian supplier. This was possible due to our volume and the supplier’s production costs lower than US/European competitors.
Join BLK to unlock our leading market rates and discover opportunities to create new revenue streams for your business. BLK supports your emission reduction and trades carbon credits on your behalf.
Save $15/MT on ULSD starting today with BLK Supply Chain. It is 100% free – we earn on the back of what were help you save.
- Get – $15/MT discount over the current market price for ULSD
- Get cash back on every order
- Open a new revenue stream through carbon trading