Rotterdam low sulfur fuel oil bunker premiums surge on lack of prompt fuel: traders

Rotterdam-delivered LSFO bunker premiums surged on a lack of prompt availability in the ports of Rotterdam and Antwerp, traders said.

380 CST LSFO premiums moved to $24/mt against 1% ex-wharf ARA barge market, assessed at $330.50/mt on an outright basis, Platts data show.

Usually premiums for LS bunker fuel deliveries are around $5-10/mt in both ports, traders said. The last time delivered premiums were higher was on November 27 at $28.50/mt, Platts data show.

Rotterdam traders said that the price increase was attributed to a lack of prompt LSFO availability with BP having off-spec material in its tanks there, and Totsa not being able to offer any deliveries in Antwerp due to the nationwide strike in Belgium Monday, traders said. BP and Totsa were not available for immediate comment.

“LSFO is expensive in the last few days in Rotterdam as BP cannot offer any deliveries due to the off-spec material in their tanks,” one trader said.

“Some bunker suppliers have not been loaded since last week and expect availability to resume by the end of this week in Rotterdam,” another trader said.

In Antwerp, Totsa the other biggest supplier of LSFO material was unable to cover Rotterdam shorts due to the Belgian strike, traders said Monday.

Tuesday morning traders reported no offers for prompt LSFO deliveries in both ports.

“I tried to stem a vessel for LSFO but no one can offer for the next two days,” one buyer said.

Two weeks before new Emissions Control Area regulations come in requiring a shift from 1% bunker spec to cleaner 0.1% sulfur shipping fuel after January 1, 2015, many bunker suppliers have stopped their LSFO operations in both ports leaving BP and Totsa as the main suppliers in Rotterdam and Antwerp, traders said.
Source: Platts