European VLSFO cracks hit nine-month high despite poor demand
30th December 2020 22:40 GMT

The 0.5%S European marine fuel cracks hit nine-month highs on Dec. 29 despite weak demand through December.

The 0.5%S FOB Rotterdam barge crack was assessed at $7.23/b after rallying more than 60 cents in the last week, maintaining its position as the most supported transport fuel crack.

The product was last seen higher on March 12, when it was assessed at $9.77/b before plummeting more than $4/b in a day.

The increase has also led to a wider spread between VLSFO and the next profitable transportation product, low sulfur gasoil, which was assessed at $6.01/b -- with a spread of $1.22/b between the two products. The spread has averaged 67 cents/b in December.

While the European market has seen demand fade towards the year-end, refiners over recent months have reduced refinery runs to limit gasoline and jet output, thereby affecting marine fuel availability.

Bunkerworld ,
30th December 2020 22:40 GMT