- Bunker fuel prices at the Bay of Gibraltar reach highest level in nearly 3 months.
- The 380 CST bunker fuel oil was at $435/mt, highest point since November 21, 2018.
- 3.5% HSFO CIF Med cargoes regional benchmark, at $408.75/mt aided fuel prices.
- Mediterranean handysize freight rates have softened.
Bunker fuel prices at the Bay of Gibraltar reached their highest level in nearly three months, reports Platts.
Backing HSFO market
With the strong mediterranean high sulfur fuel oil market, bunker fuel prices at the Bay of Gibraltar reached their highest level in nearly three months.
The 380 CST bunker fuel oil at the Mediterranean bunkering hub was assessed by S&P Global Platts at $435/mt Monday, its highest point since November 21, 2018.
The bunker fuel prices were supported by the 3.5% high sulfur fuel oil CIF Med cargoes regional benchmark, which was assessed Monday at $408.75/mt, up from $407/mt on Friday.
Frail buying activity
Buying interest at the port was weak. According to a local supplier at the port, the demand was so quiet, and was in line with the last two weeks.
He also added “we were expecting demand to improve after the Chinese New Year, but it is still so quiet.”
Sources said that the Mediterranean HSFO cargo market was balanced and experiencing the typical winter lull in demand.
Softened freight rates
The Black Sea delays that fret the region over the last six weeks have reduced and Mediterranean handysize freight rates have softened.
This made it easier to shift cargoes from the East to the primary bunker demand center in the West.
Front-month assessment
In crude, front-month ICE Brent futures climbed to a three-month high on Monday, assessed at 1630 GMT at $66.48/b.
This supported the European fuel oil flat price values. The price was last assessed higher on November 16 at $67.14/b.
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Source: Platts
