Europe fuel oil exports decline amid healthy supply

31 January 2014 14:56 Source:ICIS News

LONDON (ICIS)--Northwest European high sulphur fuel oil exports to Asia have declined amid healthy supply, after rising "massively" last week, industry sources said on Friday.

New shipping fixtures seen this week revealed three Suezmaz vessels are due to move from Rotterdam to Singapore in early February, carrying a total of 400,000 tonnes of fuel oil.

Last week, around 930,000 tonnes of fuel oil were seen booked from northwest Europe to Asia.

"Supply is good [but] demand is changing day by day," a fuel oil trader said.

Fuel oil is normally transported to Asia via very large crude carriers (VLCCs) which can carry either fuel oil or crude oil.

The typical deadweight of a Suezmax ship is about 160,000 tonnes, while a VLCC can carry roughly 300,000 tonnes.

However, the industry has been using the smaller-sized Suezmax vessels to transport the volumes east since late November because of its shorter lead time for delivery.

By Cuckoo James