Singapore Dec ex-wharf 380 bunker fuel concludes at premiums of $1-$1.50/mt


Singapore ex-wharf 380 CST bunker fuel term contracts for December have been concluded at premiums of $1-$1.50/mt to the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, trade sources said Monday.

This compares with November contracts which were concluded at between discounts of $1.25/mt and parity to MOPS 380 CST HSFO assessments.

Premiums or discounts for physical bunker fuel reflect prices buyers are willing to pay relative to published benchmark values.

Term demand has been relatively slower, with many buyers still loading oil from their fourth-quarter contracts, said traders.

Many buyers were also unwilling to keep too much oil on hand nearing the end of the year,, and to roll that supply to January, they added.

The slight month-on-month improvement in prices has largely been spurred on by the improvements seen in the cargo market, where differentials have stayed above the minus $2/mt mark, Platts data showed.

December supply is also not looking as ample as previous months and inventories have been slowly whittling down from the record high of 30.5 million barrels in the first week of October, said trade sources.

Incoming western volumes for December to Asia was estimated at around 3.6 million-3.8 million mt, and of that volume, around 3.2 million is expected to come directly to Singapore, they added.

Most of the specifications are expected to be of ready-grade for the bunker market or cracked material, with very little high density and high viscosity material, said traders.

Source from : Platts