London — The dry fuel oil fixture list east from Rotterdam has sent value for RMK500 CST bunker fuel sliding in recent weeks, as demand for the higherviscosity fuel is lackluster.
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With no fuel oil VLCCs booked to move east this month from Rotterdam andonly one fixed for July, demand for RMK 500 CST in Rotterdam for bunkering andas a cargo to be delivered in Singapore has been slack, sources said.
Owners of ships with the largest engines capable of running this heavier,more viscous fuel type tend to prefer it, in order to take advantage of itstypical discount to RMG fuel oil.
RMK is usually burned when sailing in open sea as, like the slightly moreexpensive RMG variant fuel, it does not meet the low sulfur content requiredin zones such as the Emissions Control Area around Europe.
The value of RMK 500 CST fuel was last heard in the market at a discountof $5.00-6.00/mt to 3.5% FOB Rotterdam barges. Value was assessed Tuesday atminus $5.50/mt, and this is 50 cents lower than it had been for the past threemonths, according to S&P Global Platts data.
The fuel oil arbitrage has been lackluster through May and June, and nofixtures have been booked for July. However, as the Singapore market tightenssources expect the east-west spread to rally, kickstarting arbitrage fixtureseast. This in turn will improve the demand for RMK 500 CST fuel as a bunkerfuel and also as a cargo to be shipped to Singapore.
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