Novorossiisk bunker fuel at 6-month high on rising Russian domestic prices

Novorossiisk 380 CST bunker fuel remained firm Friday morning, after hitting a six-month high of $530.50/mt Thursday on the back of increasing Russian domestic refinery prices, traders said.
"Prices are going strongly up at Russian refineries...so now it is the main driving factor," one trader said.
Part of the reason cited was that Russian domestic prices were tracking benchmark Rotterdam fuel oil prices higher via freight netbacks -- FOB Rotterdam 3.5% sulfur fuel oil barges have risen from an 11-month low at $563/mt on June 24 to be assessed at $602.75/mt Thursday.
Higher Russian crude oil prices are also responsible, traders said, adding some suppliers had low availability.
One buyer at the port said "The tightness in the market is, of course, driving prices up."
Another trader said there was greater co-operation between suppliers.
"It is difficult to tell how much cooperation there actually is, but I believe that suppliers are seeing that they can charge prices above $500 without much impact on demand."
Prices fell $150/mt in February after a new player entered the market. "A new company came into the port and started competing, everyone had to follow down," a trader said.
"[Now] there is a change in the pricing system in Novorossiisk, the same as happened 2-3 years ago when prices jumped from $400/mt to $600/mt in less than a month," another trader said.
"Of course the main suppliers are talking to each other more."
Source: Platts