Singapore Fujairah delivered 380 CST HSFO spread hits over 1 1/2 year low
5th November 2021 07:38 GMT


The delivered 380 CST high sulfur fuel oil bunker differential between Singapore and Fujairah reached a more than 1 1/2-year low of minus $30/mt Nov. 3, as bunker premiums at Fujairah firmed up amid strong demand and tight barge availability, S&P Global Platts data showed.


The spread was last lower at minus $33/mt March 18, 2020.

“HSFO bunker demand has been robust lately since October, limiting slots for availability of barges for prompt deliveries," a Fujairah-based bunker supplier said. "Meanwhile, inventories of HSFO have declined as a result, supporting delivered premiums.”

Heavy distillate stocks at Fujairah fell 4.2% week on week to 7.386 million barrels, according to Fujairah Oil Industry Zone data provided exclusively to S&P Global Platts Nov. 3.

“Given the strong margins on HSFO now, suppliers with ample cargoes are definitely raking in good profits at the moment,” a trader said.

The cash differential for Fujairah-delivered 380 CST high sulfur bunker fuel over the Mean of Platts Arab Gulf 380 CST HSFO cargo assessments surged to an over 19-month high of $55.75/mt Nov. 3, according to Platts data. The premium was last higher at $63.49/mt March 31, 2020.

Meanwhile, the HSFO supply in Singapore increased, as buying appetite from the utility sector in the Middle East waned after peaking during the summer for power generation.

“Surplus HSFO from the Middle East have softened 380 CST HSFO delivered premiums in Singapore, so more spot demand is expected while prices edge lower,” a Singapore-based bunker supplier said.

The premiums of Singapore-delivered 380 CST HSFO against FOB Singapore 380 CST HSFO cargo assessments averaged $10.50/mt Nov. 1-3, down from October’s average of $17.57/mt, Platts data showed.

HSFO shipments of 995,287 barrels, or 156,738 mt, sold by Kuwait Petroleum Corp. loaded Oct. 28, and were being partially discharged at the port of Fujairah Nov. 5 before arriving at Singapore, according to data provider Kpler. As of Nov. 5, 46,042 mt of the total quantity had been unloaded at Fujairah, the data showed.

“Based on daily spot inquiries seen, Singapore HSFO sales in October could have risen slightly above September’s," another trader said. "This is mostly due to prices inching lower toward the end of the previous month."

Bunkerworld ,
5th November 2021 07:38 GMT