Singapore bunker prices rose on Thursday but their premium to fuel oil cargoes fell to near parity as heavy July fuel oil arrivals found their way into the retail bunkers market, traders said. Prices for 380-centistoke (cst) bunker fuel were pegged at $341-343 a tonne, up $8 from Wednesday's Asian close but its differential to fuel oil fell to 45 cents a tonne, steady to the previous day.
"Arrivals are heavy this week and traders have to clear ullage at their storage tanks to accommodate the arrivals. The ex-wharf sellers have been offering cheap since Monday, mostly at a $1-premium over cargo values," said a Singapore-based trader.
"Even the high-end suppliers are offering delivered barrels at premiums of no more than $2-$3 a tonne and most of the mid-range guys have to get on parity or even a slight discount."