Istanbul bunker fuel price reach nine-month high over Novorossiisk
Bunker fuel at Istanbul, Turkey, hit a nine-month high Thursday on a strong regional benchmark, with its premium over Novorossiisk, Russia, also the highest since mid-January on falling Black Sea prices.
S&P Global Platts assessed 380 CST high sulfur fuel oil at the Turkish port at $350/mt delivered Thursday, a $5/mt rise on the day and its highest since January 17.
Bunker fuel at the Russian port fell $10/mt on the day to $305/mt delivered.
Istanbul's premium over Novorossiisk therefore reached $45/mt, the widest price gap between the two ports since January 17.
Demand and availability at Istanbul were heard good Thursday. Prices at the Turkish port were mostly supported by a strong CIF Med high sulfur fuel oil cargo regional benchmark.
Prices at Novorossiisk have been supported in recent weeks by tight availability with maintenance works at Russian refineries and a prolonged road building season boosting buying interest for bitumen. These combined to limit availability of fuel oil in Russia.
Deliveries to the Black Sea by rail and river were subject to delays through September, prompting fuel oil prices to stay high.
While delays in deliveries to Novorossiisk have been abating in recent days, availability may remain relatively tight until October, suppliers said.