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Singapore bunker prices rose on Monday, with differentials to fuel oil cargo values firmer at $9-10, traders said. Prices for 380-centistoke (cst) bunker fuel were pegged at $283-$285 a tonne, while its differential to fuel oil stood at $9.40 a tonne, up by 90 cents.
"The market is expected to remain very tight even up to the second week of February," a bunker trader said. The tight market is expected to ease next month, as a total of 2.5-2.6 million tonnes of Western arbitrage fuel oil are due to arrive in Asia. But delays in shipping due to logistical problems, would see most of the cargoes delivered in the second-half of the month, stoking fears that the supply squeeze would persist till then, traders said. Ex-wharf cargoes were heard being offered at $288-$293 a tonne.

Copyright Reuters, 2007

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