Singapore HSFO viscosity spread at narrowest since mid-April on 380 CST demand
7th July 2020 19:13 GMT

Amid a surge in demand and tighter supply of 380 CST high sulfur fuel oil, the Singapore HSFO viscosity spread, measured as the difference between the 180 CST and 380 CST grades, narrowed to a near three-month low at $2.33/mt July 7, S&P Global Platts data showed.

The spread was last narrower at $1.99/mt April 15.

Thus far in the week ending July 10, more inquiries were heard for high sulfur bunker fuel, which according to some traders has resulted in tightening prompt supply.

“We have been seeing consistent demand for HSFO in recent weeks but this week, supply is tight; the earliest I can possibly meet for deliveries is July 12,” said a bunker trader.

During the Singapore bunker Platts Market on Close assessment process on July 7, 1,500 mt of Singapore-delivered 380 CST bunker was offered by Glencore at $259/mt for delivery over July 12-14. Outside the MOC process, indications were at $260-$263/mt.

“I did receive buying feedback at around $250-255/mt today but I wasn’t keen to sell at those levels because there's still room for the price to increase with these fundamentals,” said a bunker trader based in Singapore.

“One reason for the increased inquiries for HSFO bunkers recently could be due to VLOCs (very large ore carriers) running again,” said a second Singapore-based bunker supplier.

In addition, increased demand has come in from the power generation sector, Platts reported earlier, with Saudi Arabia buying at least 80,000-90,000 mt of HSFO from Singapore for loading over June 18-19 in a rare movement, as usually the country buys HSFO from the Persian Gulf or from the West.

The country typically buys 1 million-1.5 million mt/month of HSFO over June-August to meet its power generation demand, market traders said.

Since the start of July, 460,000 mt of HSFO has traded in the MOC process, 380,000 mt of which was of the 380 CST HSFO grade, with Trafigura the primary buyer and Glencore the main seller. This compares with 180,000 mt traded in June.

The Singapore 380 CST delivered bunker price was assessed at $258.75/mt July 7, $2/mt higher on the day and $20.48/mt higher compared to the June average, Platts data showed, while FOB Singapore 380 CST HSFO was assessed at $246.66/mt, $2.04/mt higher on the day and $22.95/mt higher than the June average.


Bunkerworld ,
7th July 2020 19:13 GMT

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MOROZOV STEPANOVICH
14th July 2020
We at OOO SVAB was founded in 2002 in the Russian Federation with Registration number 1021605355826 are mandates and agent to reputable refineries in the Russian federation.For all petroleum products. Aviation Kerosene,Jet fuel JP54 , Mazut, Bitumen, D2, D6, AGO, ESPO, Petcoke, LPG, LNG spot for FOB Rotterdam. Contact:  svab.o@yandex.ru

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