Singapore Sept ex-wharf marine fuel term indications increase as oversupply eases
19th August 2020 12:38 GMT

Singapore’s ex-wharf term price indications for September-loading 0.5% sulfur marine fuel increased to a discount of $30/mt to the Mean of Platts Singapore 10 ppm gasoil assessments as oversupply eases.

No bids were heard as traders said they were monitoring the market, awaiting better price cues.

“I am still working through my term volume. If the price is lower at the end of August, then I will get some term volumes for September. For now, there’s still volatility in the market so who knows how prices will move by the end of the month,” said one Singapore-based bunker trader.

Term contracts for the supply of the mainstay marine fuel for August loading were concluded at a discount of $45/mt to the Mean of Platts Singapore 10 ppm gasoil assessments amid oversupply, S&P Global Platts reported on July 21.

Meanwhile, some traders said they were also asking for September-loading 0.5% sulfur marine fuel term price indications to be based on the benchmark FOB Singapore Marine Fuel 0.5% cargo assessment.

“We are slowly trying to move towards the benchmark FOB Singapore Marine Fuel 0.5% cargo assessment because it makes sense to be using this benchmark over 10 ppm gasoil assessments. It’s better for our costing as well,” said a second bunker trader.

As such, a few suppliers are offering ex-wharf term price indications for September-loading 0.5% sulfur marine fuel at a premium of $5.50-$6/mt to the benchmark FOB Singapore Marine Fuel 0.5% cargo assessment.

“Gasoil is ultimately not reflective of the 0.5% sulfur marine fuel market so we are seeing more traders trying to buy and sell basis FOB Singapore Marine Fuel 0.5% cargo,” said a Singapore-based bunker supplier.

“We are not expecting to see many bids for September-loading 0.5% sulfur marine fuel contracts until the end of the month or even early-September because a lot of traders are still using their existing inventories,” the supplier added.

Singapore's commercial onshore residue stocks slipped 1.7% week on week to 23.817 million barrels or 3.75 million mt Aug. 12, Enterprise Singapore data released Aug. 13 showed, amid a drop in imports.

Singapore's fuel oil imports plunged 55% week on week to 686,994 mt in the week ended Aug. 12, the Enterprise Singapore data showed. This weekly import volume was the lowest since the week ended May 27, when 293,310 mt was imported, according to the data.

On Aug. 19, S&P Global Platts assessed Singapore ex-wharf 0.5% sulfur marine fuel at $338/mt, stable on the day.


Platts ,
19th August 2020 12:38 GMT

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