Platts assessed the 0.3% sulfur high pour physical market at $86.45/b, up $1.35/b from Thursday, the highest level for this product since October 2, 2008.
During the Platts Market on Close assessment process, there was a bid for 0.3% sulfur HP fuel oil at $86.40/b for delivery in November 16-20, but no sellers came through.
Sources said prices would likely to rise higher to attract barrels.
"The situation has not really changed. There still is not much production," a source said, explaining the consecutive price gains in the low sulfur market.
With the Atlantic Coast's only 0.3% sulfur supplier Sunoco having made upgrades to its Girard Point, Philadelphia, refinery last winter, fuel oil production halved to about 15,000 b/d, leaving the market short of barrels.
Prices for 0.3% sulfur HP also ended Friday at their highest premium over benchmark 1% sulfur since February 2, 2009, at $8.45/b, according to Platts data, reflecting the relative strength of this grade compared with the rest of the fuel oil complex.
Swaps for 0.3% sulfur HP were weaker Friday compared with physical values, also mirroring the tightness in prompt delivery supply.
The balance-November swap was assessed 50 cents under physical at $85.95/b, while December was approximately at a 10-cent backwardation, again reflecting lack of prompt material.
