Singapore 0.5% sulfur marine fuel premium to Fujairah hits 3-month low as demand grows
18th September 2020 21:29 GMT

The premium of Singapore-delivered to Fujairah-delivered, 0.5% sulfur marine fuel narrowed to $2/mt on Sept. 18, the lowest in three months, S&P Global Platts data showed, on tight barge availability and an uptick in demand in the Middle East.

The premium was last lower on June 19 when prices were at parity, Platts data showed. In August, the premium averaged $10.80/mt.

According to market participants in Fujairah, demand for low sulfur bunker fuel has increased in recent weeks as buyers replenish inventories.

Fujairah's latest inventory data, released by the Fujairah Energy Data Committee and Platts, showed that heavy distillates and residue stocks were 12.55 million barrels as of Sept. 14, a 5.78% fall from Aug. 30 and the lowest since March 9 when stocks were 12.32 million barrels.

“We saw good demand at end-August and early-September and now the buyers are taking delivery of the volumes they had bought then so barge availability is tight for prompt dates at the moment,” a UAE-based bunker trader said.

Market participants in Fujairah are still receiving inquiries for prompt deliveries.

“Barge availabilities are still limited for prompt date deliveries so there is still a good number of inquiries for low sulfur bunker fuel for delivery prior to Sept. 24,” a UAE-based bunker trader said.

Consequently, market participants in Fujairah are seeing offers for prompt date deliveries at $350-$375/mt.

On Sept. 18, Platts assessed Fujairah-delivered, 0.5% sulfur marine fuel at $333/mt, up $13 on the day.

 


Bunkerworld .,
18th September 2020 21:29 GMT

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