The premium of bunker fuel at Istanbul over the regional high sulfur fuel oil benchmark has reached its highest point in six weeks amid a soft HSFO market, sources said.
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"December is very, very long on components and finished grade," an HSFO trader said. The large volume of M100 coming from Russia has contributed to the overload of product in the Mediterranean, despite the ongoing reduction in fuel oil exports from Russia.
S&P Global Platts assessed 380 CST fuel oil at Istanbul at $376/mt delivered Tuesday, $30.50/mt higher than the CIF Mediterranean cargoes HSFO regional benchmark, the widest spread since October 23.
"Demand is not poor but it [should] be better in Istanbul in December," a supplier said. The market at the Turkish port was slightly busier than in previous days, a trader said.
Fuel oil was also being shipped into the Mediterranean from Northwest Europe despite the complex in the former region already being over supplied, HSFO sources said.