- Weak demand and plentiful supply are bearing down on bunker markets across the globe, market sources say.
- The sense of little having shifted since the coronavirus pandemic tore a chunk out of global trading activity is at large in Northwest Europe.
- The stocks are high in Europe and the situation for independent suppliers is very difficult.
A recent news published in the Ship and Bunker brings out a clear picture about the pathetic state of Bunker Industry across the world. It signifies poor demand with more supplies as inventories are full.
No market has improved
A sign of clear distress in the market comes from reports of bunker barges being “given back” because of poor demand.
The global market situation appears to be little better.
According to London-based market analyst Energy Aspects, the third quarter supply is expected to rise by 620,000 barrels a day from the second quarter as China and Brazil increase production.
“Until recently, bunker fuel sales at key bunkering hubs were buoyed by opportunistic restocking, but sales volumes have since caught up with the reality of slowing global trade,” the analyst was quoted as saying in a note by regional news provider Arab News.
“We had 9-10 million metric tonnes [of fuel oil inventories] at the start of the year that was supposed to draw by the start of the second quarter but we are seeing 13 million mt now and [it is] building every month,” the report said quoting a senior fuel oil trader.
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Source: Ship and Bunker