Cepsa was seeking 10,000 mt LSFO into Spain, and Greek State owned utility Public Power Corporation has an outstanding tender seeking 240 plus 130,000 LSFO for 2011, scheduled to close November 11. BP was also heard seeking a cargo of LSFO for a Greek utility short, and Electricity Authority of Cyprus was heard seeking a cargo of LSFO in November. EAC and BP were not available for comment.
"I see more demand coming for end year on low sulfur fuel oil," said one fuel oil trader in the region, adding that the Mediterranean requirements could in part be covered from the north.
The differential between 1% FOB NWE cargoes and comparable CIFMediterranean cargoes was seen at $17.75/mt Monday, up $1.25/mt on the day and at parity to the freight differential for the route, Platts data showed.
Not all agree, however, and some traders said the demand uptick was not enough to drive up prices significantly.
"[There is product] on offer and winter is still quite mild for the time being," said one fuel oil market source in the region.
