Singapore bunker prices fell on Wednesday tracking lower fuel oil cargo values. Prices for 380-centistoke (cst) bunker fuel were pegged at $275-$277 a tonne, down $3 from the previous trading day, but the tight market ensured that levels stay at a premium to cargoes.
The premium was at $2.13 a tonne, up from a discount of 50 cents on Tuesday.
"There wasn't much activity today despite the fall in prices. As usual, the shipowners probably decided to sit back and wait for prices to go lower before moving in," a Singapore-based trader said.
"Most suppliers were fixing deals at around $275-$276 a tonne levels although some, especially the high-end suppliers were holding offers at $280 levels," the trader added.
In the regional markets, prices rose across the board from week ago levels as supply tightened in Hong Kong and South Korea.
Traders said Hong Kong was running low on both fuel oil and marine gas oil as one replenishment cargo was delayed by 3-4 days.
"We have just enough to last until August 23 or so, when the cargo was due to arrive. Now it has been postponed to August 27 and I think it's going to be a very tight four days," a Hong Kong-based supplier said.
In South Korea, at least two suppliers were unable to meet prompt deliveries of up till August 23 due to low allocation volumes.