EMEA News
LSFO Production Delays in Rotterdam
A prolonged shortage of blending components to produce low sulfur 380 cSt (LS380) product in Rotterdam is causing loading delays and pushing up bunker prices, Platts reports.
Data from Ship & Bunker shows LS380 is currently priced at $620.00 per metric tonne (pmt), a gain of $20.50 pmt over the last month, and hit a high of $635.00 pmt on December 4, 2013.
By comparison, IFO380 has risen $8.50 to 584.00 pmt in that time, with a high of $586.50 pmt on December 6, 2013.
Fuel oil sources said LSFO production has been offset by increased interest in high sulfur fuel oil (HSFO) since Urals availability increased about a month ago.
Delivered bunker fees are between $5 and $10 per metric tonne over Fuel Oil Barges (FOB) levels, depending on markets, port conditions, and weather.
Fuel supplier OW Bunker said last month that it expected increased hedging activities as ship owners and operators take advantage of low prices for Rotterdam FOB high-sulfur fuel.
