Istanbul bunker premiums settle highest since June 6 on short supplies: sources

Time:2013-10-28 Browse:56 Author:RISINGSUN
Istanbul bunker fuel oil delivered premiums, the difference between 380 CST HS bunker fuel and 3.5% CIF Med cargoes, settled at almost a five-month high on short availabilities, sources said.


Delivered bunker barge prices are usually set as a premium over larger CIF Mediterranean cargoes to include freight costs for ship-to-ship deliveries.


In Istanbul port, 380 CST HSFO was assessed at $632.50/mt Friday, reaching a premium of $53.50/mt for bunker deliveries over 3.5% CIF Med cargoes, the highest in almost five months, since June 6, when premiums reached $61/mt and after 380 CST HSFO prices pegged at $655.50/mt, Platts data shows.


Premiums were steadily rising along this week, reflecting dry availabilities for fuel oil on the low output from Turkish refineries.


"I think there are only two or three suppliers who can offer today," a source said Friday.


Traders said that Turkish refineries will switch to bitumen production in the next few weeks, reducing volumes for bunker fuel.