Rotterdam bunker fuel oil prices dropped to their lowest level in over six years Tuesday, driven by weaker crude prices and healthy supply, Platts data showed Wednesday.
Rotterdam delivered 380 CST high sulfur fuel oil prices fell to $230.50/mt Tuesday, the lowest assessment since March 16, 2009.
Brent crude prices have come under sustained pressure over the last year due to global oversupply. US domestic production has nearly doubled in about six years, leaving Middle Eastern and African oil, which used to be destined for US shores, now competing for buyers in Asia and Europe.
As a result, refined product prices, such as those for fuel oil, have plunged to multi-year lows.
The Amsterdam-Rotterdam-Antwerp bunker fuel oil market has also in recent weeks benefited from healthy flows from Russia and lack of arbitrage to Asia.