EMEA News
Waterway Levels Pressure European Fuel oil Supply
Restrictions on inland barge movements on European waterways are affecting the region's fuel and refined oil products markets.
The hot summer in Europe has seen inland waterway levels fall to record lows hampering barge traffic along those routes while Germany saw fit to release material from its strategic oil reserve in late October to ease the situation, energy news provider oilprice.com reports.
Tightening supply has seen the price of heating oil rise and the onset of winter in the northern hemisphere could increase the pressure on price as river levels may not change significantly until early next year.
Local bunker markets could be affected by the situation as different sources of demand compete for the available supply.
According to Ship and Bunker, the premium for 380 cst high sulfur fuel oil at Hamburg over the price of the same product at Rotterdam is currently around $25 per metric tonne which is more or less within the expected range although loading difficulties have been reported at some installations.
