Rotterdam Hi5 spread doubles in two weeks as ARA prompt fuel stays tight

According to ENGINE's 13 November update, HSFO in Rotterdam has lost roughly twice as much value as VLSFO over the past two weeks. As a result, the gap between the two grades, known as the Hi5 spread, has doubled since 30 October. LSMGO in Rotterdam has also come down over the same period, although it jumped on the day.

For owners with scrubbers, a wider gap between high and low sulphur fuel means bigger savings on each stem of HSFO. Rotterdam also stays well below Gibraltar on all three main grades, so ships with a choice of port on the Europe leg may find the ARA option cheaper.

The catch is timing. A trader told ENGINE that prompt supply in the ARA ports is tight, and buyers are advised to give suppliers 5-7 days of notice to get good coverage. Independent fuel oil stocks in the region are up about 6% so far in November versus October, which has not yet eased the prompt window.

Further south, prices in Durban moved up across VLSFO, LSMGO and HSFO on the day, tracking a firmer Brent as tension around the Strait of Hormuz continues.

• Rotterdam: Hi5 wider, prompt dates tight
• Gibraltar: priced above Rotterdam on all main grades
• Durban: prices up on the day