Negotiations for the term supply of Singapore ex-wharf marine fuel 0.5%S bunker for July were largely inconclusive so far, as the market was still awaiting cues on near-term price direction amid a wide bid-offer spread, market sources said June 9.

Sellers raised offers to a discount of $20-$24/mt to the Mean of Platts Singapore 10 ppm gasoil assessments amid tighter supply, while buying indications were at a discount of $30/mt, sources added.

Term contracts for the supply of the mainstay marine fuel for June loading were concluded at a discount of $25-$27/mt to MOPS gasoil assessments, S&P Global Platts reported on May 20 quoting market sources.

"There are not many suppliers offering ex-wharf now, so the discussions for term volumes have started earlier, and the [offer] indications are higher [on the month]," a Singapore-based bunker trader said.

No firm bids were reported against these higher offers, but traders said buying indications were at a discount of $30/mt to the MOPS gasoil assessments.

"Traders are waiting to see if prices will decrease towards the end of the month. Demand for Singapore-delivered marine fuel 0.5%S [bunker] has been weak, so traders are checking ex-wharf prices now,” a Singapore-based bunker supplier said.

Most market participants expect demand for Singapore delivered marine fuel 0.5%S bunker to remain weak in the near term amid a drop in demand for bulk carrier charters.

A shipowner said he has up to 30,000 mt of Singapore delivered marine fuel 0.5%S bunker that he has not lifted as part of his second quarter term commitment.

"The delivered market is still in oversupply, so I am going to wait till the end of the month to see if the indications for ex-wharf will decrease further, a second trader said, adding: "At current levels, I am absorbing the barge cost for bunker delivery.”

Barging cost to deliver bunker fuel to passing ships in Singapore is currently $8-$10/mt, market sources said.