Rotterdam delivered bunker premium falls on oversupply: sources

The Rotterdam 380 CST high sulfur bunker fuel premium to 3.5% FOB Rotterdam barges fell to its lowest in over a month due to an oversupplied market, sources said.
The Rotterdam delivered 380 CST high sulfur bunker fuel premium to 3.5% FOB Rotterdam barges fell to $1.25/mt, its lowest since January 31 when it was assessed at a discount of $0.25/mt, Platts data shows. On March 4, a premium of $6/mt was assessed for HSFO delivered bunker fuel at the port of Rotterdam.
Delivered HSFO bunker prices were assessed at $607.50/mt, while FOB Rotterdam barges were at $606.25/mt Thursday.
There was plenty of product on offer, traders said, with a closed arbitrage limiting outlets.
"Suppliers are losing money, selling at a loss but there are new contracts that are pushing them to empty their tanks," a source said.
However, narrower HSFO premiums have not been accompanied by greater availability for bunker buyers in Rotterdam due to a lack of barges. In contrast to Rotterdam, Antwerp has ample product supplies and barge availabilities, traders said.
Source: Platts