Spot premiums for 380-cst high-sulphur marine fuel at Singapore, the world’s largest bunker hub, have surged due to the tight supply available for prompt deliveries, market sources said.
The price strength for the fuel, which is used to power ships, has been keeping refuelling costs high for vessels calling at Singapore and other ports in the region.
Delivery dates in the first half of October could command premiums of over $60 a metric ton to Singapore cargo quotes this week, the highest in 2024 so far for a delivered pricing basis, according to data from the market sources.
Offers for dates in the second half of October largely ranged between $25 to $35 a metric ton, the sources said.
“The prompt dates go to crazy levels, easily (adding) another $20 or more,” a Singapore-based marine fuel trader said.
Premiums for bunkering remained supported despite signs of easing high-sulphur fuel oil benchmarks, which saw cargo premiums weakening for the second half of October.
“The first-half is still slightly tight (in supply). There are new cargoes coming but some sellers are holding off to sell (later),” a Singapore-based fuel oil trader said.
Steady demand for high-sulphur marine fuel also supported premiums, with Singapore bunker volumes for the grade firming year-on-year, based on port authority data.
September high-sulfur bunker sales were forecast at 1.78 to 1.80 million metric tons, based on LSEG Oil Research, higher than August’s official volume of 1.69 million tons.
As for the low-sulphur market, delivered bunker premiums have also retained support in recent days, largely hovering in a range between $20 to $25 per ton, according to market sources.
(Reuters – Reporting by Jeslyn Lerh; Editing by Jamie Freed)
