EMEA News
Argus: Average Bunker Prices up 25% in European Market
Higher bunker prices in Europe have helped bunker suppliers move into more profitable territory, according to price reporting agency Argus Petroleum.
The market has seen a 25% average rise over the past six months.
"The higher prices — together with stronger margins for fuel oil — have helped bunker suppliers become more profitable, after several years of weak margins and slashed profits," the agency said.
Looking ahead, major marine fuel suppliers can expect market conditions to remain profitable for the first half of 2018 with signs of that evident in the last quarter.
The price of 380 CST bunker fuel at Rotterdam cost an average of $285.32 a metric tonne (mt) in the 12 months ending 30 September this year, but has subsequently increased to an average of $322.83/mt so far in the fourth quarter, according to the agency.
On bunker volumes, however, the market is likely to continue to contract at major northwest European ports.
"Rotterdam volumes have been hit as shipping companies have increased slow steaming and switched to larger container vessels, which has hurt bunker volumes despite an increase in throughput at the port."
However, bullish crude values may bring some respite.
"Higher activity in the North Sea offshore sector — on the back of higher crude prices — could help to soften volume decreases in northwest Europe," it said.
