Global bunker prices strengthen w-o-w as crude rally and supply risks lift fuel costs

• VLSFO and HSFO rise across major hubs
• Stronger crude and geopolitical risks supported prices

Global bunker fuel prices strengthened across major marine-fuel hubs in the week ended 22 August 2026, with VLSFO, MGO and HSFO prices rising across Singapore and Rotterdam, while Fujairah recorded a marginal decline in VLSFO. The broad-based increase was supported by a sharp recovery in crude prices and heightened concerns over Middle East supply disruptions.

The stronger crude complex increased the cost of bunker fuel, while geopolitical uncertainty and potential disruptions around key Middle East shipping routes added a risk premium to regional fuel markets.

Middle East tensions lift supply-risk premium

Continued uncertainty around Iran and the Strait of Hormuz is keeping energy markets on edge. Reuters noted that oil flows through Hormuz remained below normal levels, adding to concerns over the reliability of regional energy supplies.

Regional bunker markets

• Singapore: Singapore bunker prices strengthened across all three fuel grades. VLSFO increased by $9/t w-o-w to $829/t. The broad-based gains indicate stronger underlying fuel-market sentiment as higher crude prices and supply concerns lifted replacement costs.
• Rotterdam: Rotterdam recorded the sharpest increases across all three fuel grades. VLSFO rose w-o-w $24/t to $679/t. Firmer crude benchmarks and higher refined-product costs supported prices, while regional supply conditions added to the upward pressure.
• Fujairah: Fujairah was the only major hub to record a decline in VLSFO, which fell $4/t w-o-w to $806/t. The broader upward pressure remained intact. Middle East geopolitical risks continued to keep supply concerns elevated.

Market factors

• Brent crude strengthens w-o-w: Brent crude prices rose to $93.60/bbl on 21 August from $87.07/bbl on 14 August, reflecting stronger market sentiment amid heightened geopolitical uncertainty and concerns over potential supply disruptions. The sharp weekly increase raised the cost base for marine fuel and added upward pressure on bunker prices.
• WTI crude climbs further: WTI crude futures increased to $87.06/bbl on 21 August from $82.40/bbl on 14 August, supported by tightening supply concerns and elevated geopolitical risks. The sustained rise in crude prices is likely to keep bunker fuel costs firm across major global hubs.

Outlook

Global bunker prices are likely to remain firm in the near term, with the crude rally, geopolitical tensions and regional supply risks providing continued upward support. MGO is expected to remain particularly sensitive to tightening product balances, while VLSFO and HSFO will continue to track movements in crude and fuel-oil markets.

The key risk remains the Middle East and Strait of Hormuz, where any further disruption to crude flows or shipping could trigger another sharp increase in bunker and freight costs. Conversely, easing geopolitical tensions or a recovery in regional supply flows could moderate the recent price gains.