Rotterdam's HSFO price rises amid supply crunch

All grades are tight in Rotterdam, but prompt HSFO availability is most constrained amid bunker barge loading delays at terminals, a trader said. 

PHOTO: Oil refinery and storage tanks in the Port of Rotterdam, Netherlands. Getty Images

Lead times have stretched from 3–4 days to 5–10 days as several barges are stuck in long queues awaiting product loading, two sources confirmed.

This tightness in supply, coupled with upward pressure from higher-priced stems, has pushed Rotterdam’s HSFO price by a steep $49/mt in the past day. As a result, Rotterdam’s HSFO discount to Gibraltar has diminished by $14/mt to $22/mt. The port's Hi5 spread has also narrowed sharply from $63/mt yesterday to $33/mt.

Rotterdam’s HSFO price gain has outpaced those of Asian bunker hubs like Fujairah and Singapore. It is currently priced at about $18/mt higher than Singapore's HSFO and about $50/mt higher than Fujairah's.

By Manjula Nair

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