Bunker fuel prices at Rotterdam hit their highest level in almost nine months Tuesday amid rising crude oil prices and increased buying interest.
S&P Global Platts assessed 380 CST fuel oil at the European bunker hub at $315/mt delivered Tuesday, the highest point since on January 6 at $316/mt delivered.
Prices were supported by rising crude oil prices and buyers’ fears of further price rises. “Demand is still good,” a buyer said Wednesday. “I think that’s because they are afraid of [prices] going to a higher level.”
This is due to fears of rising crude oil prices in the wake of future storms, the buyer said.
“After [Hurricane] Harvey comes Irma! Ranked in the fifth and highest category, this hurricane is expected to be one of the most powerful of recent decades, and is likely to reach the Gulf of Mexico in a few days’ time,” analysts at Commerzbank said in a note Wednesday.
Following Irma could be Jose. “In recent years, oil market participants have become used to tropical storms causing no lasting damage to the energy infrastructure. This may change now,” they said.