Gibraltar bunker fuel prices at 1-month high on availability, higher crude oil

May 23, 2017

Gibraltar bunker fuel prices at 1-month high on availability, higher crude oil

Bunker prices at the Mediterranean bunker hub of Gibraltar hit a one-month high Friday on mixed reports about availability and rising crude oil.

380 CST fuel oil was assessed at $323/mt delivered Friday, $13 higher day on day and its highest since April 19.

Product had already been allocated by at least one major supplier, leaving little spare for prompt inquiries, a trader said Friday.

This appeared to be due to higher demand rather than smaller volumes being available.

“Short notice stems can’t be fitted in so the lead-time [for delivery] has increased, but it’s not tight as such,” a buyer said.

Material remained available as normal from some quarters, “Availability is fine,” one supplier said.

The high sulfur CIF Med cargo benchmark rose $4.25 on the day Friday to $300.50/mt. Thus, taking Gibraltar’s premium to the benchmark to $22.50/mt Friday, $5.75 higher day on day.

The next two years look set to be difficult for the global shipping industry as it struggles to address problems of excess capacity, shifting trade flows, and global environmental regulations. Shipping companies appear to continually struggle to stay afloat.

Source: Platts

Source from : International Shipping News

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