The price of bunker fuel at many Mediterranean ports is falling back from the three-year highs hit earlier in the week, with traders saying fuel oil fundamentals in the region are more than offsetting a resurgent crude prices, Platts reports.
A greater supply of Black Sea cargoes coming into the region combined with a closed arbitrage to Asia have contributed to an amply supplied Mediterranean HSFO cargo market, trading sources said.
"Gibraltar looks well supplied with cargoes at the moment," said one bunker supplier. "I haven't heard of any suppliers being short." Gibraltar delivered high sulfur 380 CST bunker fuel was assessed down $8.00/mt at $719.50/mt Thursday, Platts data showed. The product had reached $738.50/mt Tuesday rising crude prices, $15.50/mt short of its all-time high of $754/mt on July 14, 2008.
Piraeus-delivered high sulfur 380 CST bunker fuel also fell Thursday, to be assessed at $719.50/mt. It similarly peaked on Tuesday at $730.50/mt, the highest level since its all-time high on July 11 2008, when it was assessed at $750.50/mt, Platts data shows.
Even with falling prices, most Mediterranean bunker fuels remain within tens of dollars of their all-time highs, and bunker suppliers say they are worried that demand will fall if crude prices remain at these levels, or rise further.
"Bunker fuel is needed so [end users] have to buy, but smaller lots are inquired as they hope the market will come off," said one bunker supplier, adding; "Prices are just too high these days."
A greater supply of Black Sea cargoes coming into the region combined with a closed arbitrage to Asia have contributed to an amply supplied Mediterranean HSFO cargo market, trading sources said.
"Gibraltar looks well supplied with cargoes at the moment," said one bunker supplier. "I haven't heard of any suppliers being short." Gibraltar delivered high sulfur 380 CST bunker fuel was assessed down $8.00/mt at $719.50/mt Thursday, Platts data showed. The product had reached $738.50/mt Tuesday rising crude prices, $15.50/mt short of its all-time high of $754/mt on July 14, 2008.
Piraeus-delivered high sulfur 380 CST bunker fuel also fell Thursday, to be assessed at $719.50/mt. It similarly peaked on Tuesday at $730.50/mt, the highest level since its all-time high on July 11 2008, when it was assessed at $750.50/mt, Platts data shows.
Even with falling prices, most Mediterranean bunker fuels remain within tens of dollars of their all-time highs, and bunker suppliers say they are worried that demand will fall if crude prices remain at these levels, or rise further.
"Bunker fuel is needed so [end users] have to buy, but smaller lots are inquired as they hope the market will come off," said one bunker supplier, adding; "Prices are just too high these days."