demand slowdown hits eastbound fuel oil exports

摘要

Some 77,100 t/d of fuel oil was loaded for long-haul export from European and Mediterranean ports during May, down by 35pc on April,when a spate of very large crude carriers(VLCCs) headed to Asia-Pacific as a result of tightening supply during widespread refinery maintenance. Eastbound shipments fell to 46,900 t/d from 100,200 t/d.Just a single Rotterdam-Singapore VLCC booking was made,compared with six during April.Fuel oil stocks in Singapore ros to a record high at the start of June an opportunities to ship product east are now much rarer.The$22.00-31.50/t spread between Singapore and Rotterdam fuel oil swaps for June-August suggests it will be difficult to ship product east in the next few months(see below).