St Petersburg bunker fuel oil hi-lo at near 10-month low on tight HSFO

The St Petersburg bunker fuel hi-lo, the discount of 380 CST HSFO to 380 CST LSFO shrank to a 10-month low driven by tight prompt HSFO supply, traders said Thursday.

According to Platts data, St Petersburg bunker fuel hi-lo was assessed at $20/mt Wednesday. The last time it was lower at $15/mt on November 25, 2013, the data shows.

In outright price terms, 380 CST HSFO has risen steadily since the start of August to reach $402.50/mt Wednesday. Meanwhile, 380 CST LSFO was rangebound over the last month, assessed at $422.50/mt Wednesday, data shows. The firming HSFO market was the main driver of the narrowing hi-lo as stocks were low at many Baltic bunker suppliers because of the refinery maintenance season, sources said.

“We don’t quote HSFO inquiries as we lack fuel,” one source said. “It is hard to find a product,” another trader said.

According to Russian traders, only Gazpromneft has produced sufficient volumes of HSFO from the Omsk refinery that is usually used by the bunkering industry at the Baltic port of St Petersburg.
Source: Platts