Singapore bunker prices dropped on Wednesday, tracking losses in crude prices, while the differentials to fuel oil cargo nudged lower, traders said. Prices for 380-centistoke (cst) bunker fuel were pegged at $264-$266 a tonne, while its differential to fuel oil fell by about $2 to $7 a tonne.
"Premiums are expected to stay high, as the prompt market remains tight, but weaker crude values are keeping prices in check," a Western-based ship owner said.
In regional markets, bunker premiums over Singapore cargo prices rose at South Korean and Hong Kong ports, triggered by a supply squeeze, regional bunker traders said. The benchmark 380-cst price in South Korea declined by $2 to $315 a tonne from week-ago levels, but premiums jumped by about $10 to $57 a tonne.
"The supplies situation is still not improving, we are placing orders two weeks before vessel arrivals and are trying our best to supply," a South Korean bunker trader said.
One South Korean refiner is expected to offer partial cargoes in late January, after supplying cargoes to meet domestic demand elsewhere. In Hong Kong, bunker prices for the 380-cst held steady at $296 a tonne, while premiums rose by $12 to $38 a tonne over the week, underpinned by delays in supply.
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