Las Palmas high sulfur bunker fuel market dry on lack of available cargoes in Med: traders

Las Palmas’ high sulfur bunker fuel market is dry for prompt dates on a lack of cargo availability in the Mediterranean region, traders said Tuesday.

Aegean and Cepsa, two physical bunker suppliers in Las Palmas, have run out of stocks of fuel oil, while Peninsula, another bunker fuel supplier, is offering in only small quantities for deliveries Wednesday, sources said.

“There are no offers for [high sulfur fuel oil] prompt in Las Palmas,” one trader said.

Traders said the West Mediterranean region has been tight for HSFO spot availability over the last month due to local refinery maintenance and low output of HSFO as refineries have been favoring sweet slated crude, sources said.

“There is no product in the Med,” one fuel oil trader said. “Nobody wants to sell the little fuel there is.”

Another trader described premiums as “pretty good” and said the trend would continue in the short term.

Fresh bunker spec HSFO stocks are expected to arrive into the port around October 20-25.

Delivered premiums for high sulfur bunker fuel at Las Palmas have spiked over Gibraltar port, which is used as a pricing basis in the West of Med as a result of tightness.

According to Platts data, delivered 380 CST HSFO Las Palmas basis was at a 34-month high Monday, assessed at $28/mt over 380 CST delivered HSFO Gibraltar basis.

The last time it was higher was January 6, 2012, Platts data shows.

On an outright price basis, 380 CST HSFO was at $535.50/mt in Las Palmas and at $507.50/mt in Gibraltar.
Source: Platts