Singapore bunker prices fell in line with retreating Singapore cargo prices, while suppliers continued to express concerns over supply tightness in the spot bunker market for the fourth-quarter.
Lower fuel oil arrivals into Asia from the West has sent many independent suppliers to the sidelines for October. "How do you offer spot barrels if you can't be sure if you are going to have enough oil to meet term commitments? We just have to play it day-to-day" a bunker supplier said.
Prices for 380-centistoke (cst) bunker fuel were pegged at $313-315 a tonne, $7 lower from Friday's Asian close.
The 180-cst bunker fuel price was stable to Friday's settlement at $330-332 a tonne.
Suppliers said that despite healthy demand for spot barrels, they would continue to concentrate on their term contracts until a more definitive arbitrage picture was available.
"We were all led to believe that the market was going to be overrun in November and December, but suddenly that picture has changed," a supplier said.
Egyptian General Petroleum Corp (EGPC) has issued an import tender for 140,000 tonnes of gas oil for delivery between October 2005 and February 2006.
The refiner is looking to purchase four 35,000 tonne cargoes of gas oil, to be used for bunkering purposes, traders added.
Delivery of the first cargo is expected to be around October 10-12, while the second cargo is set to be received end-October. The third cargo is set for second-half December delivery, while the final cargo is scheduled for delivery in February 2006.
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