Low Houston HSFO prices drive trade

摘要

The recent resurgence of Covid-19 in the US has decimated maritime commerce, sending high-sulphur fuel oil (HSFO) prices in Houston, Texas, below other global bunkering hubs this June and creating a unique trading opportunity to northwest Europe. The outbreak of Covid-19 forced a supply glut of fuel oil in the US this March as major cruise line carriers and container ship fows were shut down, curbing demand. Since then, overall US fuel oil inventories have been breaking record highs week-on-week, climbing up to 42mn bl the week ending on 26 June, a new three-year high, according to the US Energy Information Administration data.