A recent news report published in Bunker World reveals about the Amsterdam-Rotterdam-Antwerp stocks fall 14% on week to 1.255 mil mt, according to the data from Insights Global, despite market sources citing poor demand during the week.
Poor demand despite easing lockdown
Following the coronavirus pandemic, demand has failed to recover in line with the easing of country lockdowns in Europe.
Bunker demand at Rotterdam has been low, sources said through the week.
Ongoing fear of second wave of the virus is clouding outlooks, leading many to await direction in the coming weeks.
“We are just waiting out this time, there is no real demand,” a source said for 0.5%S marine fuel.
“There is no product in the Mediterranean and demand is strong especially from utilities,” a source said.
Bunker demand low in Rotterdam
The weak demand continues with ample availability of 0.5%S marine fuel. This scenario, has led to the mounting pressure on the prices.
As a result, the M1-M6 contango in the swaps market strengthens from minus $13/mt on July 22 to minus $17.75/mt assessed July 30.
On the other hand, the backwardation in the 3.5%S fuel oil swaps market moved from 50 cents/mt on July 22 to $5.50/mt on July 30, reflecting the tightness in the market.
Therefore, the spread between August 0.5%S and 3.5%S FOB Rotterdam barge swaps was assessed at $55.50/mt July 30, down from $69/mt a week earlier.
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Source: Bunker World
