General Discussion

• Relationship between Crude price and Bunker and BAF
• Amos Ong
  APL Co. Pte Ltd
  GMT 03:47
  4th Jun 2008

  Anyone know the relationship between Crude price and Bunker and BAF?
  
  $1 increase in crude price = $? increase in bunker price = $? increase in BAF
• Matthew Dempsey
  General Motors
  GMT 16:08
  22nd Aug 2008
  IP: x.x.251.23

  We have done a regression of the WTI against IFO 380 CST and found the following relationship: y=4.9355X - 7.1407 with an R squared of .9427. I am looking for someone to provide a stated conversation from West Texas Intermediate to IFO 380 CST that confirms this relationship.
• Guy Wilson-Roberts
  Petromedia Ltd (Canada)
  
  GMT 16:23
  22nd Aug 2008
  IP: x.x.216.195

  Matthew,
  
  I would be very interested to see the results of your analysis. Tracking WTI v 380 this year we've found that for several months that the latter was around $100 per metric tonne undervalued, before coming into line recently.
  http://www.bunkerworld.com/news/2008/08/72831
  
  Maersk provides an online calculator to compute BAFs based on changes in fuel prices. The relationship between crude and bunker prices is more complex, however.
  http://baf.maerskline.com/