The premium of 380 CST fuel oil at Gothenburg, Sweden, over Rotterdam, The Netherlands, hit its widest all year Friday, buoyed by strong demand at the Swedish port.
S&P Global Platts assessed Gothenburg 380 CST delivered bunker fuel at a $28 premium to Rotterdam, $12 wider on the day and its largest since October 17, 2017, when it was assessed at $31.
Gothenburg had strong demand at the end of last week, which gave extra support to prices that were already high on firm ICE Brent crude futures.
“Demand is quite healthy,” a local supplier said.
Platts assessed the 380 CST bunker fuel at Gothenburg at $467/mt delivered Friday, up $9 on the day and its highest since October 31, 2014.
At Rotterdam, however, bunker fuel prices dropped on the day Friday. Platts assessed bunker fuel at $439/mt delivered, down $3 on the day, falling from its highest value since November 3, 2014.
“Prices are dropping off now,” a local supplier said, as they tracked the softening ICE Brent futures through the day Friday.
A lack of demand was behind the price decline, but sources said buyers would have to bite the bullet and pay up soon, as they don’t see a steep price drop as likely.
“Demand is calm — everyone thinks prices are too high, but prices are unlikely to crash so they will have to buy,” a second supplier said.
Source: PlattsPrevious Next