Singapore ex-wharf 380 CST bunker premium at 9-month high on supply crunch
The Singapore ex-wharf 380 CST bunker differential to Mean of Platts Singapore 380 CST high sulfur fuel oil assessments was the highest in almost nine months Tuesday on tight availability.
The Singapore ex-wharf 380 CST bunker premium rose $1.72/mt day on day to be assessed at $6.02/mt Tuesday. It was last assessed higher on February 12, at $6.95/mt, S&P Global Platts data showed.
Traders cited tight availability of product, especially the mainstay 380 CST bunker fuel on an ex-wharf basis and particularly for prompt loading dates, as the main reason for the spike in premium in recent days.
Ex-wharf 380 CST bunker premium has firmed — from $3.09/mt last Thursday — over the past four consecutive trading days.
“The market is very tight now. And I hear the situation is going to be worse for December,” said a Singapore-based trader Tuesday.
A tight availability situation has also been compounded by a fully committed barge schedule for some of the suppliers, said traders.
Singapore ex-wharf 380 CST bunker was heard offered Tuesday at $269-$270/mt at the start of the Platts Market on Close assessment process.
An uptick in crude — front-month January ICE Brent futures rose 28 cents/b — during the one-hour MOC assessment process led sellers to raise offers to $270-$271/mt levels.
A trade for 4,000 mt of ex-wharf 380 CST bunker for November 11-14 was heard concluded at $270/mt.
Ex-wharf 380 CST bunker was assessed at $270/mt Tuesday, up $1.5/mt day on day. It ignored the 22 cents/mt day-on-day drop in MOPS 380 CST HSFO, which was assessed at $263.98/mt Tuesday.
The Singapore delivered 380 CST bunker premium to MOPS 380 CST HSFO also rose to a four-month high Tuesday. It rose $1.22/mt day on day to $9.52/mt Tuesday.
It was last assessed higher at $9.65/mt on July 1, Platts data showed.
Singapore delivered 380 CST bunker was offered Tuesday at $273-$274/mt at the start of the MOC process.
A firming crude, however, led sellers to raise offers to $274-$277/mt levels.
“I don’t mind if my bid is not hit. I think it is safe to wait and move higher later,” said a seller who was offering delivered 380 CST bunker at $277/mt.
Delivered 380 CST bunker was assessed at $273.5/mt, up $1/mt day on day.