EUROPE AND AFRICA RESIDUAL AND MARINE FUEL: Key market indicators this week
9th August 2021 11:27 GMT

FOB Rotterdam 0.5%S marine fuel barges were assessed at $490.50/mt on Aug. 6, down $32.25/mt week on week.

0.5%S marine fuel

  • The premium for delivered 0.5%S marine fuel over barges at Rotterdam fell $2.75/mt week on week to $11.50/mt.
  • Stocks of fuel oil in the Amsterdam-Rotterdam-Antwerp region increased sharply by 16% or 171,000 mt on the week to 1.243 million mt in the seven days to Aug. 5, according to data from Insights Global, rebounding from multi-month lows.
  • Low sulfur material was more resistant to drops in the crude complex last week, compared to high sulfur fuel oil, attributed in part to electricity generation in the region.
  • Demand for 0.5% marine fuel in bunker markets was down on the week ending August 6 in EMEA ports. This is expected to carry over into the rest of August due to the current Summer holiday season. Availability is good at all ports, with no major delays expected.

High sulfur fuel oil

  • FOB Rotterdam 3.5% fuel oil barges finished the week to be assessed at $387.00/mt on Aug. 6, down $24.75/mt from the previous week.
  • HSFO cracks have steadily weakened on the back of weak demand and increased supply from higher refinery runs.
  • Bunker demand for high sulfur was slow on the week across European and African ports, with tightness on high sulfur bunker fuel in the Mediterranean expected to last until the end of the month. No delays are expected.
  • The differential between 0.5%S and 3.5%S fuel oil -- also known as the Hi-5 bunkers spread -- narrowed on the week by $17/mt to $102/mt at Rotterdam. The Capesize scrubber premium dropped $261/day to $3,432/day during the same period.

Feedstocks

  • Loadings of European vacuum gasoil in the week to Aug. 5 totaled 95,470 mt, down from 159,290 mt in the previous week, according to Platts trade-flow software cFlow, with seven tankers loaded.
  • Vacuum gasoil values in Northwest Europe were reported to be slightly lower this week, with sources citing a weaker Urals crude market. Urals produces a high yield of VGO, so when this grade is cheap refineries prefer to buy it rather than import VGO separately.
  • The CIF Northwest Europe HSVGO quote was last assessed at a premium of $3/b to October ICE Brent futures, a drop of 20 cents/b on the week.

 


Bunkerworld .,
9th August 2021 11:27 GMT