Novorossiisk bunker fuel hits 4-month high on tighter supply, delays: sources
Novorossiisk bunker fuel prices reached a four-month high on tightening supply and delivery delays on the back of bad weather last week, sources said.
04 February 2014 - 23:07
380 CST HSFO was assessed at $440.50/mt Monday, the highest price since $455.50/mt on September 26 last year, Platts data showed.
The delivered bunker fuel market at the Black Sea port continued its upwards momentum Tuesday with prices trading at $453/mt for 380 CST HSFO for prompt dates and at $420-435/mt for deliveries in eight to 10 days, bunker sources said.
Rising bunker fuel premiums were supported by the shortage of fuel oil for prompt delivery due to railcar delays, sources said Tuesday. Typically, bunker fuel oil stocks arrive at the Russian port by railcar.
Premiums also retained strength due to poor weather in the northern Black Sea, sources said. Last week, the port was closed a few times for several hours, hitting bunker fuel oil loadings and deliveries, a source said. Vessels arriving at the port could not reach bunkering areas due to strong winds, pushing back deliveries for forward dates which created a backlog of barges waiting for fuel, sources said.
Bunker sources reported Tuesday around four days of delays for earlier scheduled deliveries.
As a result of the delays at Novorossiisk, bunker demand rose in the neighboring port of Istanbul where fuel usually costs more than cheap Russian fuel.
"We are seeing a rising number of inquiries from vessels coming from Novorossiisk," a bunker supplier said Monday.
The premium of 380 CST HSFO in Istanbul was assessed at 173/mt over Novorossiisk, Platts data showed.
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