Bearish sentiment drives Rotterdam RMG into rare sub $300/mt territory

Bearish sentiment over Greece and the falling Euro has pushed prices for 380 CST high sulfur fuel oil into sub $300/mt territory for the first time since early April, sources said.

Platts assessed 380 CST delivered bunker fuel in Rotterdam at $295.50/mt Monday, down $13/mt to Friday and the lowest price since April 9, 2015.

But Rotterdam and Antwerp suppliers were unwilling to sell 380 CST HSFO below $300/mt, sources said.

“The market is bearish because of Greece and dollar to euro forex,” a source said.

Furthermore, the premium of delivered bunker fuel to ex-wharf 3.5% FOB Rotterdam barges narrowed to $2.50/mt, from $3.25/mt on Friday.

Nevertheless, 3.5% FOB Rotterdam barges weakening had a knock on effect in the delivered bunkers prices in Rotterdam Monday.

The Rotterdam high sulfur fuel oil market continued to look oversupplied at the beginning of the week as arbitrage opportunities with Singapore continued to look narrow while supplies into Rotterdam remained steady, sources said.

The fixing of the 270,000 mt Captain Kyriakou vessel by Petroineos for exporting fuel oil from Rotterdam to Singapore loading July 17 was reported as failed by shipping sources. “Economically, the arb does not work,” a trader said, of the fixture.

Increased buying activity in Rotterdam, and the fact some vessels had been reported as on subjects for exports on that route the previous week, had been linked by sources to the fact market players were looking at minimizing losses arising from the oversupply in Rotterdam.
Source: Platts