Singapore bunker fuel prices ease

25 May, 2006

Singapore bunker prices eased on Wednesday, but its premium to fuel oil cargo values inched up slightly, traders said. Prices for 380-centistoke (cst) bunker fuel were pegged at $336-$338 a tonne, down $2 from Tuesday's Asian close, with the differential to fuel oil higher at a premium of $1.15, up from 62.5 cents.
"The scale of the fall in the 380-cst cargo market was larger than expected and the bunkers market is slow to track the fall," a Singapore-based bunker trader said.
"Fundamentally, the situation is still the same, with the market looking weak due to heavy supplies and would probably get weaker going forward into June."
In the regional markets, prices slipped across the board from week-ago levels.
Traders said demand continued to be poor as shipowners were taking minimum volumes from the more expensive ports such as South Korea, Japan and Hong Kong.

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