Supplying bunkers in the Mediterranean appears lucrative under current market conditions. Image Credit: File Image / Pixabay
Bunker suppliers in the Mediterranean are charging as much as $90/mt more for the very low sulfur fuel oil (VLSFO) they deliver than the underlying bulk cost, according to price reporting agency S&P Global Platts.
The premium for delivered VLSFO at Gibraltar over CIF Mediterranean cargoes has averaged $90.38/mt so far this month, the agency reported Friday.
That compares with a $29.11/mt premium for delivered high sulfur fuel oil (HSFO) over cargoes in the same period of last year, when HSFO was the dominant bunker fuel.
Meanwhile at Rotterdam Platts reported delivered VLSFO prices at a $13.66/mt premium over FOB Rotterdam barges, compared with a $7.28/mt premium for HSFO a year earlier.