Singapore bunker prices rose on Tuesday, tracking lower fuel oil cargo values. Bunker fuel of 380-centistoke (cst) grade was pegged at $191-$193 a tonne, down $2 from the previous trading day with the premium to cargo levels widening by another $1.25 to $8.00 a tonne. "The supply tightness will keep widening the bunker premium as many sellers are running out of January-delivery cargoes. The market will get progressively tighter," a Singapore-based trader said.
"However, it won't last long and February is another matter. The tightness, driven by the shortfall of supplies due to a large volume of off-specification cargoes, has already eased in the cargo market."
The traders said demand was slow and most enquiries were for prompt supply dates of January 27-31. One deal, for 1,000 tonnes delivery on January 28, was done at $196 a tonne.