EMEA News
Low Sulfur Fuel Oil Market "is Getting Smaller"
Declining demand for low-sulfur fuel oil (LSFO) bunkers in Northwest Europe has pushed down the premium for the fuel, Platts reports.
The difference between fuel oil barge (FOB) prices and the November swap price in Rotterdam dropped to $4.50 per metric tonne (pmt), the lowest level since late last month.
"The market is getting smaller rapidly," said one trader, noting that both supply and demand for 0.10 percent sulfur bunkers were on the decline.
Sources also said the size of inquiries has fallen, while more customers are buying gasoil for liners.
"We lately see no more than 500 mt for 380 CST LSFO compared to over 1,000 mt earlier in the year," one said.
The price of ISO 380 LSFO stood at $484.50 pmt in Rotterdam on Wednesday compared with $459 pmt for high sulfur fuel, according to Ship & Bunker data.
