- Singapore ex-wharf low sulfur marine fuel spread to gasoil widens on slow demand
The Singapore ex-wharf Marine Fuel 0.5%S against the Mean of Platts Singapore 10 ppm gasoil assessments widened to an eight-month high of $53.99/mt on July 13 on subdued demand, S&P Global Platts data showed.
The spread was last widest on November 5, 2019 at $54.31/mt.
Market sources said demand for the grade has been tepid since end-May as traders were hesitant to hold on to inventories amid weak demand for Singapore delivered Marine Fuel 0.5%S. One supplier said he had sold all of his July-loading spot availability and was now discussing August-loading spot volumes.
“We have been discussing spot volumes a month in advance because we anticipated demand to be slow,” the supplier said.
A few traders polled by Platts said they may not negotiate for August-loading ex-wharf spot and term volumes amid the prevailing ample supply.
On July 8, Singapore’s commercial onshore residue stocks rose 6.1% week on week to 26.666 million barrels, or 4.2 million mt, marking a three-year high, Enterprise Singapore data released on July 9 showed. While the data does not provide a breakdown for stocks of bunker fuel, industry sources estimated that the current oversupply will take two to three months to ease.
“With the delivered bunker market still in oversupply, the current delivered premiums are too low for me to consider buying more ex-wharf, even if ex-wharf premiums are coming off,” a Singapore-based bunker trader said.
On July 13, Platts assessed the Singapore-delivered Marine Fuel 0.5%S at $330/mt, a $43.99/mt discount to MOPS 10 ppm gasoil assessments and at a $17.17/mt premium to the benchmark FOB Singapore Marine Fuel 0.5%S cargo.