Rotterdam: fewer lots sold. File image/Pixabay.
A further weakening of demand for high sulfur fuel oil (HSFO) has been reported from the northwest Europe oil products market of Rotterdam.
SP Global Platts, which operates a 'market-on-close' pricing mechanism for HSFO barges in the Dutch port, cited a 25% drop in demand in September over the previous month.
412,000 metric tonnes (mt) of 3.5% RMG 380 CST fuel oil were traded on the Platts platform in September compared to 546,000 mt in August, and 594,000 mt in July, the price reporting agency said.
BP, Shell and Mercuria were the main buyers, while Litasco, Vitol and Gunvor sold the majority of the barge clips, it added.
The run down in HSFO demand ahead of the global switch to 0.5% sulfur fuel has been widely expected by the bunker industry.