Asian bunker prices fall, premiums up in Japan

Asian bunker outright prices fell in most of Asia, but the market in Japan was supported by limited stocks, traders said on Wednesday. Japan's benchmark 380-centistoke (cst) grade rose $15.00 to $370.00 a tonne against $355.00 last week, while premiums edged up to $41 from week-ago levels, on thin supply.
"Refineries in Japan are producing less fuel oil," said a Japanese trader, resulting in a tight supply. He added that refiners were using fuel oil as a feedstock to produce higher-value distillates to improve profit margins, as demand for gasoline picked up during the summer driving season.
In South Korea, the benchmark 380-cst grade lost $9.00 to $346. But the drop in bunker prices lagged the fall in Singapore cargo prices, helping to push up premiums by $1 to $17.
"Suppliers want to sell cheap," a Korean trader said, referring to last week's statement that a top South Korean refiner was set to sell aggressively. Hong Kong's benchmark 380-cst bunker fuel fell by $6.00 to $349.00, while its premiums rose by $4.00 to $20.00.