Bunker fuel demand, river exports support Russian domestic fuel oil

Healthy bunker fuel demand and ample river exports continue to support Russia's domestic fuel oil market, sources said Monday.
The country's domestic fuel oil price is estimated to carry a premium of around $50/mt to the export netback at present, one source said Monday.
"Bunkering is in full swing, exports are going well," said one trader.
Fuel oil demand for bunkering is now expected to last throughout September after the cruise season was extended, sources said.
"It will last until the end of September," said one trader, adding that the season had initially been expected to close around September 9.
Market players are also closely monitoring the water levels of Russia's rivers, in order to gage the likely duration of the country's river export season.
"If the level of the Volga river does not drop," the season is set to last, said one source.
Exports by river are expected to continue well into October, depending on the water levels.
During the summer months, fuel oil exports surge as rivers allow extra flows in addition to typical railcar volumes.
Demand by utilities stocking up ahead of the heating season is also picking up, especially in Russia's Far East, sources said.
"The heating season in the east has started," said a trader. Further west, heating demand is set to pick up in the second half of September.
Source: Platts