London (Platts)--22Nov2012/947 am EST/1447 GMT
Physical European low sulfur fuel oil barge swaps have reached their widest discount to front-month swaps since late January, as refineries return from maintenance amid sluggish demand, Platts data showed Thursday. "There just aren't any 1% [barge] buyers. Demand has not been good," a trader said. Physical 1% sulfur barges were assessed at a $3.75/mt discount to the December swap Wednesday, the widest since January 24, Platts data show. "The market is waiting for a number of refineries to return. For now it seems balanced, but once they return it should be longer," said a second trader. Article continues below...Request a free trial of: Oilgram Price ReportOilgram Price Report is a daily report that covers market changes, market fundamentals and factors driving prices. Oilgram Price Report also brings a vast array of Platts international prices for crude and products, netback tables, and market critical data.
Physical European low sulfur fuel oil barge swaps have reached their widest discount to front-month swaps since late January, as refineries return from maintenance amid sluggish demand, Platts data showed Thursday. "There just aren't any 1% [barge] buyers. Demand has not been good," a trader said. Physical 1% sulfur barges were assessed at a $3.75/mt discount to the December swap Wednesday, the widest since January 24, Platts data show. "The market is waiting for a number of refineries to return. For now it seems balanced, but once they return it should be longer," said a second trader.
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Oilgram Price Report is a daily report that covers market changes, market fundamentals and factors driving prices. Oilgram Price Report also brings a vast array of Platts international prices for crude and products, netback tables, and market critical data.
The Slagen refinery in Norway, a producer of about 100,000 mt/month LSFO, returned to service two weeks ago and is likely to export its first LSFO cargo this week, sources said. Supply is set to receive a further boost after Shell's 400,000 b/d Pernis refinery restarted earlier in the week. "A CDU unit restarted last weekend," a trader said, adding that the rest of the units at the facility are set to restart this week. The Pembroke refinery in south Wales is due back online in the final week of November, the latest turnaround schedule from refinery operator Valero shows. The refinery usually produces up to 100,000 mt of LSFO per month, according to one trader. --Marko Trtica, marko_trtica@platts.com--Edited by James Leech, james_leech@platts.com
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