Singapore 380 CST bunker fuel term contracts for the second quarter of 2014 have been concluded at premiums of $2.75-4.50/mt to the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments on an ex-wharf basis, market sources said Thursday.

The higher range of $3.50-4.50/mt to MOPS 380 CST HSFO assessments was concluded around two weeks earlier, while the lower range was concluded more recently, tracking the weakening demand in the spot market.

This is down slightly from the Q1 premiums of $3.50-4.50/mt to MOPS 380 CST HSFO assessments.

Spot market premiums have been hovering around $3/mt in recent days.

Premiums or discounts for physical bunker fuel are the prices buyers are willing to pay over or under published benchmark values.

With expected amply supply of oil in the next two months, buyers have been patiently waiting it out on the spot market, not budging unless they saw good values.

Supply volumes expected for April are estimated to be almost 6 million mt, with around 4 million mt or so to remain in the local bunker market and the rest to be re-exported upwards to the North Asia market, said sources.

Of the approximate 4 million mt, about a quarter is of feedstock and low sulfur quality, half of high viscosity and high density, and the remaining volume to be of ready bunker-grade.

May volumes to date are estimated to be a touch above 4 million, but it was still too early to say which fixtures are firm and with plenty more time for more fixtures to be made, trade sources said.