Singapore bunker prices surged on Wednesday, while in Hong Kong a supply squeeze drove bunker values higher, traders said. Prices for 380-centistoke (cst) bunker fuel were pegged at $311-$313 a tonne, and its differential to fuel oil cargoes rose to $11.90 a tonne, versus $10.00 at the previous close.
"The market was quite today. Buyers were on the sidelines avoiding the high premiums," a bunker broker said. In regional markets, bunker values were higher, and in Hong Kong prices for both bunker grades were traded at $328 amid a supply shortage, bunker traders said.
"We hope to receive cargoes by the end of the month," a Hong Kong-based bunker trader said. The benchmark 380-cst outright price in Hong Kong jumped by $19 from the previous week, while premiums rose to $27.90 a tonne, up from $18.40 a tonne a week ago.
Hong Kong, which lacks an oil refinery of its own, imports bunker from around the region. Annual bunker sales volume in Hong Kong is about 6 million tonnes. Bunker markets in Japan were closed on Wednesday for a holiday.