Singapore bunker prices rose on Friday but the differentials to fuel oil cargo values fell below $5 a tonne as bunker prices failed to track the rise in cargo levels, traders said.
Prices for 380-centistoke (cst) bunker fuel were pegged at $304-$306 a tonne, up $2 from Thursday's Asian close, while its discount to fuel oil was at $5.60, down $1.90. "It has happened again. Every time cargo values go up, bunker prices will fail to track the rise and the differentials will weaken. This time it's also no difference," said a Singapore-based bunker trader.
"Worse, the shipowners have all run away because prices have gone up. So sellers, especially the low-end guys, will have to cut prices further to attract buyers and that's no good for anybody."