Singapore ex-wharf 380 CST bunker spot premiums at 14-month high of $10.22/mt


Singapore 380 CST bunker fuel spot premiums on an ex-wharf basis have risen to a 14-month high of $10.22/mt to the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, Platts data showed Friday.

Premiums have not hit that level since February 14, 2012, when they were $11.72/mt.

Singapore 380 CST bunker fuel spot premiums have been fluctuating in the $5-6/mt range for about two weeks, with flat prices falling in line with crude futures. Premiums to MOPS 380 CST HSFO typically move conversely to flat prices.

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

Market sentiment has strengthened with a persistent lack of available on-specification fuel, sellers said.

Most of the 380 CST grade is high in water content, and there has been a shortage of blending components. Those factors have delayed on-specification fuel, sellers added.

The premium is $10-12/mt for loadings five to seven days forward, while loadings seven to 10 days forward are $7/mt, trade sources said.

Berth availability at terminals has also been severely tight, with tight schedules for all of the activities involved in loading and unloading fuel, they added.

Another factor compounding the tightness in supply and berth space is that more oil tankers might be coming by Singapore to get bunker fuel, instead of purchasing in Fujairah, where the market has been severely short on oil, according to one trade source.

Several sellers in the Fujairah market have been able to deliver bunker fuel in late April, but only a handful are able to deliver earlier, said sources based in the Middle East.

On a flat price basis, Platts assessed Singapore ex-wharf 380 CST at $600/mt, and the Singapore delivered 380 CST was at $602.50/mt, while the Fujairah delivered 380 CST was assessed at $605/mt.

Source from : Platts