The Rotterdam delivered LS bunker premium was assessed at $16/mt, the highest level since December 21, 2012 when it was $16.75/mt, Platts data showed.
Typically delivered bunker fees hover in a range of $5-10/mt over FOB Rotterdam barges depending on market fundamentals, port conditions and weather, sources said.
Rotterdam LS bunker fuel oil premiums have risen over the last two months due to poor refinery margins coinciding with the refinery turnaround period, sources said.
A sustained shortage of blending components to produce finished 380 CST LSFO has also supported higher bunker prices, postponing prompt loadings for LSFO deliveries, sources said.
According to fuel oil sources, refineries have been slow to come back in recent weeks while LSFO production has been offset by a recent interest in HSFO. For most of the year, low sulfur crude grades were more attractive with better yields, but about a month ago Urals had greater availability and refineries have added more of that into their basket, producing more HSFO and less LSFO, sources said.