Fuel Oil
In a sector that has seen numerous players come and go, Vitol is one of the longest-serving and most active independent physical traders in the global fuel oil market.
Our longevity and success lies in our ability to add value beyond the relatively straightforward movement of physical product. Vitol is resolutely customer-focused, providing fuel oil solutions, stocks and hedging expertise all over the world.
Approximately 50% of our fuel oil business lies in trading feedstocks, bought by refiners for further upgrading. For Vitol, this is anything but a commoditised business; it is more akin to selling a finished product, and demands a high level of technical expertise. There is a vast array of different blends in the feedstock market, and Vitol is meeting the exacting standards that refiners demand.
Vitol is also increasing its share of the bunkers market, forming important new partnerships directly with fleet owners. Around 30% of the world’s fuel oil is used by ships, and we have invested heavily in order to provide the flexibility, speed and logistics that customers need. We have built an extensive network of storage terminals, not only leased but through direct ownership in Rotterdam and Fujairah. These facilities have been tailored to Vitol’s requirements and, together with our recent acquisition of bunker supply vessels, they demonstrate our total commitment to being able to supply bunkers and meet the precise demands of vessel owners.
Moreover, through the considerable volumes we deal with – we routinely ship more than 1m tonnes of product every month – we have many more opportunities to optimise the value of a seller’s stream.
Importantly, we also offer a true depth of blending expertise in-house – greater, indeed, than many of the very largest corporations – and an unrivalled knowledge of the market and grades available. This know-how, coupled with major resources, has fostered many exciting new partnerships with customers as we create innovative ideas and ground-breaking solutions.
• EuroTank Rotterdam is equipped with jetties capable of accommodating vessels ranging between bunker barges and VLCCs. The second phase of expansion is to be completed in late 2008 and will increase capacity to 622,000m3.