Rotterdam high sulfur fuel oil bunker premiums firm on loading issues, lack of supply

Rotterdam delivered high sulfur fuel oil bunker premiums to ex-wharf barges have hit a six-week high because of loading issues and a lack of supply, sources said Monday.

The spread was assessed at $20.25/mt Friday, the widest since October 7 when it was $23/mt.

On Monday, Rotterdam 380 CST HSFO bunker fuel was offered lower on the day at $412/mt by one supplier, while January ICE Brent crude was about 20 cents/barrel firmer at $78.56/b.

“Availability is a a problem. Loading issues and delays are also causing problems for prompt bunkers,” a trader said.

“The market is drying up a bit in ARA for that product [380 CST HSFO],” said a second trader.

Sources also said the recent bankruptcy filing by OW Bunker had helped widen the premium, as some buyers came back to the market to re-fix volumes.

OW Bunker had said it had 7% of the global bunker market share.
Source: Platts