Singapore bunker prices continued their slide on Monday, tracking the drop seen in Singapore cargo prices as global crude benchmarks turned in significant losses. Prices for 380-centistoke (cst) bunker fuel were pegged at $313-315 a tonne.
The 180-cst bunker fuel level was assessed at $330-332 a tonne, down $1 from Friday's settlement price.
Suppliers continue to remain cautious while offering spot barrels, and remain on the sidelines awaiting clearer price direction from the market.
Demand was healthy as shipowners rushed into the market looking to take advantage of the significant drop seen in prices since Friday's Asian close.
"We can see shipowners expressing interest to fix larger volumes here, especially since the worse seems to be over in terms of Hurricane Rita's impact on the overall pricing of the crude and product complex," a bunker trader said.
However, suppliers still contend that although demand from shipowners look set to return judging by demand volume seen on Monday, they continue to eye arbitrage fuel oil arrivals.
"We just want to make sure that spot ex-wharf barrels will be readily available before locking in a position going into October," the trader added.
Arbitrage fuel oil arrivals into Asia is estimated to be around 1.2 million tonnes.
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