Singapore bunker prices plunged on Wednesday, tracking sharply lower 380-cst fuel oil cargo values. Suppliers pegged 380-cst bunker fuel oil levels at $174-$176 a tonne, down $11 from Tuesday. Prices for the 180-cst grades were also lower at $187-$189.
"Most sellers have pulled back their offers and none were keen. It's the beginning of the month. And the resellers buy their term barrels at a premium to cargo values. With outright prices so low, it's quite clear that these numbers will be well below the month average," a Singapore-based bunker supplier said.
"So they rather be safe and hold back and see if prices continue to stay low for the next few days at least. Majors are showing offers of $17-$18 a tonne above cargo levels."
The premium of bunker prices to cargo values was $5.38 a tonne, up 50 cents from Tuesday.
Most regional prices also eased, except for Japan where supply are tight.
Traders said a refinery in the Western part of the country has soaked up about 30,000 tonnes of fuel oil to replace barrels that it has failed to produce.
"It is not clear what the problem is at the refinery but they have sucked up a fair amount of fuel oil that is meant for the domestic bunkers market."