Vitol fixes VLCC, ULCC of fuel oil on Rotterdam-Singapore: sources

Trading house Vitol was heard to have fixed a VLCC and a ULCC to carry fuel oil on the key Rotterdam-Singapore route for beginning of August loading, several market sources said this week.
The fixtures raised questions among fuel oil traders as to whether the charterer would use the vessels temporarily as floating storage or use them to move product out of the region immediately.
Vitol declined to comment.
The VLCC DS Crown was heard fixed for August 2 loading and the ULCC TI Europe for August 5 loading. Market sources reported conflicting lump sum fees in the range of $3.25 million-$3.7 million.
Market traders have been speculating that Vitol could be using the vessel as floating storage, given that prompt delivery low sulfur fuel oil is trading at a discount to more deferred dates.
TI Europe, one of the largest tankers in the world, was already heard placed on subjects to Vitol on the same key route for fuel oil in June, but it did not go ahead due to size issues.
It is unclear how the issues will be overcome this time.
According to Platts ship tracking tool cFLOW, the vessel has been staying outside of Southwold, eastern England, for the past two weeks.
The VLCC DS Crown was seen Thursday north of France travelling to Rotterdam, according to cFLOW.
Source: Platts