EMEA News
Novorossiysk Bunker Market Sees Volume Surge
The bunker market at the Russian Black Sea port of Novorossiysk has grown rapidly this year, as the discount on fuel compared with other local markets fell, Platts reports.
One source said sales for the first six months of 2014 were up 40 percent year-on-year.
"Demand is extremely strong...we sold out all available prompt volumes," one trader said.
Russian sources said bunker fuel prices at the port are based on domestically traded fuel oil prices, and the average price of 380 cst oil for August was $475.96 per metric tonne (pmt) at Novorossiysk, compared with $597.80 pmt in Istanbul.
The high demand has reduced fuel availability, but some suppliers now plan to expand their operations at the port.
Gazprom Neft, which operates three bunker barges at Novorossiysk, will bring a bigger barge to the port in October, and Rosneft Bunker and Lukoil both plan to add additional barges.
Gazprom Neft's bunkering business acquired an oil products terminal at Novorossiysk at the end of last year.
