European bunker prices have hit repeated two-year highs on strong gains in ICE Brent and gasoil futures over the last week.

"Crude and gasoil futures are driving bunker prices at the moment, there is nothing else really behind it," a trader said Wednesday.

The hike in bunker prices has in turn boosted Supramax freight rates in the basin, which had already received firm support from strong Q4 expectations and tight tonnage in much of the North Atlantic.

The Rotterdam to Aliaga scrap route, basis 45,000 mt, was assessed at $16/mt, the highest level since late April.

With freight rates booming on the higher bunker prices, voyage rate activity has been curtailed in the market, sources said, with charterers focused on rate-checking more than fixing, leaving the market primarily ship-operator driven, as the operators meet their nomination requirements.

At the same time, time-charter trip activity has also been reduced, as players chartering vessels under these contracts will have to pay out of their own pockets for the bunker costs.

With the first trickle of bearish sentiment seen in the market this week following softness in Panamax paper and freight, charterers will delay cargoes as much as possible, hoping to secure softer rates.

In the Mediterranean, high sulfur 380 CST fuel oil at Malta and Piraeus hit their highest value since July 2015 Tuesday, assessed at $338/mt and $349/mt respectively. Gibraltar has followed a similar pattern, climbing since July 2015 to a high of $345.50/mt Tuesday.

Sources have said the strong gains in the futures market have left buyers tentative and demand on the slow side.

"Demand is a little bit weak because people think that prices could go down," a broker said Tuesday.

In the North, Rotterdam reached $328/mt Thursday last week, its highest since June 2015.

Rotterdam has experienced slack bunker fueldemand for the last week, with sources citing the strong futures market.