Singapore bunker fuel prices stable

31 Mar, 2005

Singapore bunker prices were stable on Wednesday, despite higher fuel oil cargo values. Prices for 380-cst bunker fuel were pegged at $235-$237 a tonne, unchanged from Tuesday, and the differential to cargo prices narrowed to $5.38 a tonne. "The market is still tight but bunker prices did not rise in line with cargo values because they rose too much yesterday and the compensation effect has kicked in," a Singapore-based bunker supplier said.
"Most buyers are looking at barrels for delivery dates that are further out, so the prompt tightness has less impact on the market."
In the regional markets, prices were high on tight supplies in Japan and South Korea.
Prices surged to around $300-a-tonne level for 380-cst in Tokyo Bay on news that the country's refiners would keep their refinery runs low for a second successive month.
"Supplies will remain tight for yet another month. Even at levels of $300 a tonne or higher, we find it difficult to locate any oil," a Tokyo-based bunker supplier said.
In South Korea, supplies are also expected to remain tight till early next week. Most refiners are not quoting for deliveries before April 4.

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