Bunker fuel suppliers have concluded March term contracts for Singapore 380 CST bunker fuel on an ex-wharf basis at premiums ranging over $2-3.25/mt to the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, at par with February values, trade sources said this week.

February term contracts were concluded at premiums ranging between $2/mt and $4/mt to MOPS 380 CST HSFO assessments.

Premiums for physical bunker fuel are the prices buyers are willing to pay for oil over and above published benchmark values.

Offers for March term contracts were heard to be as high as $4.50/mt, said market sources.

Supply arriving in March is expected to be between 4 million-4.5 million mt, said trade sources. Looking forward, about 3.5 million mt is expected to land in Singapore in April, they added.

With what looks to be ample supply for the months ahead, and February seeing low sales due to fewer number of trading days in the month and the long Lunar New Year holiday, sellers remained uncertain whether there would be any marked improvements in traded volumes.

Spot premiums for the ex-wharf 380 CST HSFO were hovering around $2-4/mt currently, reflecting the term market rates.

Source: Platts