Singapore bunker prices fell on Wednesday as the bunker/cargo premium narrowed to around $10 a tonne, dealers said. Prices for 380-centistoke (cst) bunker fuel were pegged at $255-$257 a tonne, down $8 from Monday, with the bunker premium at $9-$10 a tonne, down $3-$4. "It's inevitable that the premiums collapse. Supplies are starting to flow into the market and the severe tightness that had plagued the market over the past 2-3 weeks is easing," a Singapore-based bunker supplier said.
"But it's not as if the market is oversupplied. I think the premiums will hold at around $7-$8 a tonne for the month, which is still quite a healthy level."
In the regional markets, prices fell from week ago levels, in line with falling fuel oil cargo values.
However, supplies are tight in Hong Kong due to firm demand. Most suppliers are unable to sell until after May 12, when replenishment cargoes arrive.
"The market is very tight and no one is even quoting for deliveries before May 12," a Hong Kong-based supplier said.
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