Marine Fuel Prices in Rotterdam Port Jump as Much as 86% on Middle East Conflict

High Sulfur Fuel Oil (HSFO), Very Low Sulfur Fuel Oil (VLSFO) and Low Sulfur Marine Gasoil (LSMGO) bunker fuel prices for vessels at the Port of Rotterdam have nearly doubled since the start of the Middle East conflict in February, OPIS pricing data showed.

In the Port of Rotterdam, the bunker diesel marine fuel A price gained 86% by April 7 to $1,347/metric ton from $724/mt on Feb. 27, the day before the conflict started, OPIS pricing data showed. Bunker HSFO rose 30% to $669/mt and VLSFO prices climbed to $733/mt from $561/mt during the same period, according to OPIS data.

The ongoing Middle East conflict has sparked fears of supply shortages due to the de facto closure of the Strait of Hormuz preventing nearly 700,000 barrels/day of fuel oil exports from refineries in the Middle East reaching export markets, according to analysts at Energy Aspects in a March report.

Marine fuel supplier KPI OceanConnect said Wednesday that bunker HSFO and VLSFO lead times in the Amsterdam, Rotterdam and Antwerp (ARA) region is 4-6 days, and 5-7 days for bunker LSMGO.

Prompt deliveries for ports in the ARA region remain “tight” although there have been no reports of shortages at ports, KPI OceanConnect said.

The U.S. and Israel began military strikes on Iran on Feb. 28. Iranian forces have retaliated with attacks on Israeli and U.S. military bases in the neighbouring states of Qatar, UAE, Bahrain, Kuwait, Israel and Jordan.

European refineries rely on heavy crude from the Middle East to produce HSFO. The reduction in crude flows to Europe could force the region’s refiners to seek more expensive alternatives, raising the price for all refined products, not just bunker fuel, according to market sources.

Reporting by Stacy Maphula, smaphula@opisnet.com; Editing by Rob Sheridan, rsheridan@opisnet.com