Novorossiisk bunker fuel prices hit 10-month high on rising demand, tight prompt supply

Novorossiisk high sulfur bunker fuel spot prices reached a 10-month high for the second consecutive day, rising to $480.50/mt on increased demand and a lack of prompt supply.

The last time 380 CST high-sulfur bunker prices in Novorossiisk were higher was September 19, 2013 set at $485.50/mt, Platts data shows.

Novorossiisk bunker fuel prices are the most competitive in the Black Sea region and usually trade at a discount of $130-17/mt to the Istanbul bunker market. That results in strong buying interest from shipowners, particularly in the summer time during the busy cruise liner season.

While July traded volumes were high in the port of Novorossiisk, demand has outpaced prompt availability of fuel oil and delivery logistics at the port, traders said.

According to one bunker trader, the shortage of bunker fuel is due to larger volumes being sent for export by local refineries. Other sources reported sufficient product stocks but said barge schedules are fully booked.

“We can quote prompt deliveries from August 10 onwards,” one trader said.

Another trader said that he was unable to find supply for prompt bunker fuel inquiries for the end of July and beginning of August.
Source: Platts