- News
- Insights
- Bunkerworld .
- Europe and Africa residual fuel: Key market indicators
.
-
Jan 18
-
Jan 13
-
Jan 11
-
Jan 8
-
Jan 7
-
Jan 4
-
Dec 31
-
Dec 28
-
Dec 24
-
Dec 21
-
Dec 14
-
Dec 9
-
Dec 9
-
Dec 8
-
Dec 4
-
Dec 2
-
Dec 1
-
Nov 30
-
Nov 27
-
Nov 25
-
Nov 23
-
Nov 17
-
Nov 16
-
Nov 11
-
Nov 10
-
Nov 6
-
Nov 5
-
Nov 4
-
Nov 2
-
Oct 29
-
Oct 27
-
Oct 23
-
Oct 22
-
Oct 20
-
Oct 14
-
Oct 12
-
Oct 6
-
Oct 5
-
Sep 30
-
Sep 29
-
Sep 25
-
Sep 21
-
Sep 18
-
Sep 16
-
Sep 15
-
Sep 14
-
Sep 9
-
Sep 8
-
Sep 4
-
Sep 2
-
Aug 31
-
Aug 27
-
Aug 25
-
Aug 20
-
Aug 19
-
Aug 14
-
Aug 12
-
Aug 7
-
Aug 6
-
Aug 4
-
Jul 31
-
Jul 30
-
Jul 29
-
Jul 28
-
Jul 24
-
Jul 20
-
Jul 16
-
Jul 13
-
Jul 9
-
Jul 9
-
Jul 7
-
Jun 30
-
Jun 26
-
Jun 25
-
Jun 23
-
Jun 22
-
Jun 19
-
Jun 16
-
Jun 10
-
Jun 9
-
Jun 5
-
Jun 2
-
May 29
-
May 26
-
May 21
-
May 20
-
May 15
-
May 12
-
May 8
-
May 5
-
May 4
-
May 1
-
Apr 28
-
Apr 24
-
Apr 23
-
Apr 22
-
Apr 21
-
Apr 20
-
Apr 17
-
Apr 16
-
Apr 16
-
Apr 3
Fundamentals in the European fuel oil market pointed to a weak outlook.
While Amsterdam-Rotterdam-Antwerp fuel oil stocks fell last week, sources said the drop was the result of a weaker contango rather than returning demand.
0.5%S marine fuel
**Sources said they were still contending with ample stocks built over April and May, while demand remained relatively weak.
**Stocks of very low and high sulfur fuel oil in the Amsterdam-Rotterdam-Antwerp region dropped 11% to 1.521 million mt in the week to June 17, its second consecutive drop and the biggest fall in two months, according to data from Insights Global.
**The contango in the 0.5%S marine fuel market was flattening, weakening storage economics and causing many to release barrels from storage. That was adding pressure to the market on the supply side, while demand has yet to recover following the coronavirus pandemic. Sources expect demand return with a lag following the relaxing of country lockdowns.
**Market sources estimate western arbitrage flows of low sulfur fuel oil into Singapore to come in at 2 million mt in July, similar to June. Western arbitrage includes Europe and the Americas.
The inflow of arbitrage cargoes into Singapore declined to 2 million mt/month in June while Singapore used to receive more than 3 million mt/month in the first quarter.
**Demand for bunker fuel at Rotterdam was moderate last week, even as bunker values continued to fall under pressure from the supply overhang in the market.
** There was some hope for demand expectations to pick up in the coming weeks for bunker fuel. Container shipping giant Maersk revised up its guidance for volumes transported in the second quarter to a fall of 15%-18% rather than the 20%-25% estimate from its previous guidance.
** VLSFO FOB Rotterdam cracks were little changed on the week, rising 13 cents/b on the week to be assessed at $4.132/b June 19.
High sulfur fuel oil
**Meanwhile, in the high sulfur fuel oil market, strength continues on the back of increased demand for the US coker feed, sources said. Availability of the product has thinned, as refineries pre-IMO 2020 adjusted to focused on lower sulfur product production in preparation for the regulations that came in to force January 1.
**Rotterdam 3.5% fuel oil barges on a FOB basis finished the week to be assessed at $236.25/mt on June 19, up 16% at $203.50/mt from June 12.
**HSFO FOB Rotterdam barge cracks continued their strengthening, rising 42 cents on the week to be assessed at $5.829/b June 19.
**Offers in to ARA were heard thin, with a source noting that product was heading to other destinations such as the US and the Red Sea.
**The amount of HSFO heading from Europe (including the Baltic Sea) to the US jumped to 9.62 million barrels in May, from 2.18 million barrels in April, according to commodity data company Kpler on June 19. Some 2.34 million barrels made the same voyage in May 2019.
**Also according to Kpler, 2.74 million barrels of HSFO traveled from Europe to Saudi Arabia in May, marking a decline of 1 million barrels from May 2019. The decline has been attributed by sources to European HSFO finding support on more limited availability post IMO 2020.
Feedstocks
** European VGO markets continue to see a division on the strength of the product, with some sources insisting the increase in gasoline demand from countries lifting lockdown measures, is bullish for the product. However opposing sources have stressed weak refinery margins and US netbacks, alongside Brent in backwardation as a stronger negative force.
** LSSR continued to find the majority of its demand from the bunker pool, as sources reported limited demand as a refinery feedstock
Bunkerworld .,