Rising freight costs have curbed the flow of fuel oil from west to east, leading to a 15 percent drop in volume for January arrival versus December while lower refinery runs in Europe may again keep supply low in February.
China's fuel oil imports were at 22.57 million tonnes in 2013, down 9.41 percent from the previous year, according to customs data. Imports from Iran and Saudi Arabia surged while volumes from Russia and South Korea fell 30 percent each.
China's fuel oil imports could stay in a downward trend this year as two more independent refineries, in addition to ChemChina, have received import quotas for crude oil. That may reduce their demand for the residue fuel as feedstock