Maltese harbour (file imag/pixabay)
Rising bunker prices and a tight market in the Mediterranean for 380 CST fuel oil could see bunker buyers seeking traders out to finance deals, price-reporting agency Platts has said.
"With the strong market we will see an increase in the amount of people using traders," a trader was quoted as saying by Platts.
"If you max out your credit line with a supplier you have to go to a trader and ask if they can sell to you -- suppliers are not willing to take the risk," a bunker buyer was quoted as saying.
The strong Med fuel oil market could stretch into next month.
"Until cutterstocks, used to blend down the viscosity of fuel oil, become more available to the [Mediterranean] market, this tighter and higher priced RMG market will persist into June," Platts reported citing Mediterranean-based traders.
Higher bunker prices on the back of stronger crude values are adding to the sense of a squeeze in the market.
380 CST at Gibraltar has gained just under $100 per metric tonne over the past two months and Thursday is close to $450/mt, according to Ship & Bunker's price data.