FOB Rotterdam High-Sulfur Fuel Oil Barges- reach lowest level recorded in 6 weeks
July 2015 has so far proved to be the lowest point that bunker fuel prices have reached this year.
Sources attribute macroeconomic factors, oversupply, dipping crude oil prices and an increasing competition from HSFO suppliers with their expanded product range, including the MGO as the reasons for driving Rotterdam’s bunker fuel prices to multi-month lows now against front-month swaps in six weeks.
Platts assessment of FOB Rotterdam barges Tuesday showed $262.75/mt which is a $3.75/mt discount to front-month swaps. Sources concluded that, with the Rotterdam-Singapore arbitrage window remaining folded, the market is bound to see a surge in oversupply. However, taking advantage of the low prices, good trading activities were noted on Tuesday for Rotterdam barges.
The possibility of some vessels trying to fix August loading vessels via the Rotterdam-Singapore route can not be ruled out, despite the arbitrage appearing closed on paper.
Shipping sources have confirmed that Vessels Cap Diamant and Afroditi, both 130,000 mt vessels, are subjected with PetroIneos for lump sum $3.6 million for loading August 10.