By Srinivas Chowdary Sunkara // petrobazaar // 22nd May 2021.
BUNKER PRICE TRENDS
Fuel oil 380 cSt prices slumped $22.34 or 3.9 pct to $550.05 while MDO and MGO prices also closed down by above 2 pct during the week. Following the global markets trend, We expect Furnace oil retail selling prices may be revised down for the first half of June, 2021.
FUEL OIL MARKETS
Amsterdam - Rotterdam - Antwerp (ARA) hub in north west Europe bunker market remain well supplied with VLSFO and LSMGO while Fuel oil stocks fell during the week. Availability of HSFO has improved in the Canary Islands in the Atlantic Ocean. Lead time for HSFO shorter 3 to 4 days in IRA(Irish Republican Army) and Gibraltar Strait. VLSFO and LSMGO can be delivered promptly in South African ports. HSFO 180 is tighter and requires longer lead time.
Fujairah in UAE is seeing better availability of Bunker fuels this week with the earliest delivery date for low sulfur fuel stems being five days away. HSFO is slightly more available in the UAE port, With lead times standing at just four days since there is more production in the market.
The Chinese bunkering hub of Xue Shan continues to have good fuel availability for all three bunker grades, and with lead times at 3 days ahead for low sulfur fuel stems. The neighboring port of Shanghai can also accommodate prompt stems.
The Far East Russian Bunker market continues to be tight, With wide spreads in prices offered for both VLSFO and HSFO 380 stems sources say. Fuel production gradually growing, but favorable export economics has pulled fuel cargoes out of the country. HSFO and LSMGO stems are tight through South Korea.
Singapore’s Fuel oil inventories dipped 3% last week despite exports plunging to eight month lows. Despite the stock draw and lead times VLSFO stems are shorter in Singapore this week, Standing at five to seven days. Lead time for LSMGO stems are down by 1 day to 3 to 4 days. HSFO supply is still tight in the bunkering hub but with the lead times are shorter than they were last month were 10 days ahead required now.
Rough weather in the US Gulf Coast has hampered bunker deliveries and caused delays, Availability of HSFO 380 and LSMGO has been titled anchorage offshore in the US Gulf Coast. Argentinian bunker ports face delays as workers union has been on a two day strike since Tuesday.
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