Fuel oil Suezmax fixed on Rotterdam-WAF route in rare move

A Suezmax carrying 130,000 mt of fuel oil has been fixed on a Rotterdam to West Africa route in a rare move, as the oversupplied European fuel oil market seeks to find new export destinations, trading and shipping sources said Wednesday.

The Suezmax Pserimos was fully fixed by bunker trading company Monjasa on a Rotterdam to Dakar route with a second discharge in to the port of Lome for July 5 loading dates, according to shipbroking reports.

A source at Monjasa was unavailable for comment.

Traders said this vessel was most likely carrying bunker fuel oil with a possibility of a part cargo of fuel oil to be used for utility purposes and power generation.

One source said this fixture might be related to shorts in the bunker fuel and fuel oil markets in the region.

Dakar in Senegal is the main port for bunker fuel oil in the region, while Lome in Togo is the most active refined product import location in West Africa.

“There is good bunker fuel demand in Dakar,” said a West African based trader. “There was also news of a recent tender for fuel oil in Ivory Coast, so it could even be related to that.”

Traders said it was normal to see close to 70,000-100,000 mt of fuel oil being imported in to this region every month on small ships but this fixture was unusual because of its sheer size and the two port discharge.

He added that this trend was seen in summer months in particular, with Northwest Europe replacing the Mediterranean as a supplier of fuel oil to West Africa, on the back of a tighter market in the Mediterranean.

“The Med usually tightens up in the summer and West Africa often gets supply from NWE,” he said. He added the Mediterranean “cannot supply much as [there is] little FOB oil in the Med.”

Earlier this year, a similar fixture was seen when the Suezmax Minerva Doxa was fixed on the same Rotterdam to Dakar/Lome voyage for February 27 loading dates. Some traders suggested that this could become a slightly regular flow.
Source: Platts