EMEA News
Market Talk: Demand Weak but Niche Markets Hold Their Own
Demand in northwest European bunker markets has failed to regain the momentum lost last year to the pandemic, traders say.
Nevertheless, last year still offered some respite to bunker traders on the lookout for plays.
"With contango in evidence last year, there was some margin to be made on the moving spreads and discounts," a bunker trader based in northwest Europe told Ship & Bunker.
That was then. And now the market has stabilised, opportunities are scarce, he added.
The lack of demand is also evident in west Mediterranean bunker markets where the temporary halt to cruise calls is a primary factor.
"Cruise is the big one in terms of absent demand," a west Med trader said. "But weak demand is apparent across ship types, particularly in general cargo."
Fewer ship calls from the general cargo sector dovetails with reports of a dearth of prompt enquiries in northern Europe which tends to narrow the scope for market plays. But it is not all bad news as a niche player has pointed out.
"January started well even though demand overall is weaker. But operating in specific areas, we haven't seen a huge drop in volume," the Mediterranean-based bunker trader and niche operator said.
About Julian Macqueen
Julian is Ship & Bunker's Senior Editor and has over 20 years' experience covering the maritime and energy industries. In addition to being the editor of the Oxford-based Bunkernews in the late nineties, his career has included appointments at Lloyd's List, Tradewinds, Bunkerworld, and S&P Global Platts.
Julian is based in London, UK.
About Ship & Bunker
Ship & Bunker is the world's most read publication focused on the marine fuel markets. Completely independent, it is the leading industry authority providing comprehensive daily news, exclusive in-depth features and analysis, along with daily & historical bunker price indications.
To contact the editor responsible for this story email us at editor@shipandbunker.com
