Tokyo (Platts)--31Mar2011/540 am EDT/940 GMT
Hong Kong bunker suppliers settled ex-wharf bunker premiums with importers at $17-21/mt to Singapore high sulfur fuel oil cargoes for April loading, down from $26-30/mt for March, suppliers said Thursday. The March premiums were historic highs due to high premiums in the Singapore high sulfur fuel oil market combined with less inflows from Europe, industry sources said. The premiums dropped after peaking mid-February. Premiums for Singapore 380 CST cargo averaged $10.38/mt in February. The premium dropped to $4.21/mt over March 1-30, and the fall was attributed to higher arbitrage volumes into Singapore market. As much as 4.2 million-4.6 million mt of residual oil was expected to arrive in March, up from February's 3 million-3.5 million mt, industry sources said. Singapore is a major source of Hong Kong bunker fuel, and Singapore prices typically impact bunker prices in Hong Kong. Sign up to Bunkerwire today. Bunkerwire is delivered daily and focuses on marine fuel prices and supply in major ports worldwide. It is essential reading for those who require accurate and timely data on this market sector. Meanwhile, the 180 CST Hong Kong bunker premiums were settled at $17-24/mt to MOPS 180 CST cargo assessments for April, down from $28-32/mt for March, while marine gasoil was at MOPS 0.5% sulfur gasoil assessments plus $22-30/mt for April, compared with $26-35/mt for March, industry sources said. Majors such as ExxonMobil, Chevron and Sinopec import bunker fuel mainly from Singapore and sell it to local suppliers on an ex-wharf basis. The local suppliers include Chimbusco Pan Nation, Vermont, Feoso, Sinopec and Soaring Dragon. The importers typically sell the bunker fuel at a premium to the monthly averages of MOPS assessments. The premiums cover freight, storage costs and trading margins. Freight costs around $8/mt to transport bunker fuel from Singapore to Hong Kong, while storage costs around $6-7/mt, sources said. Hong Kong has bunker fuel storage capacity of 403,000 mt; ExxonMobil owns storage tanks with a total capacity of 260,000 mt; Sinopec has 100,000 mt of storage; and Chevron 43,000 mt. Hong Kong sells 500,000-600,000 mt/month of bunker fuel.--Atsuko Kawasaki, atsuko_kawasaki@platts.com
Hong Kong bunker suppliers settled ex-wharf bunker premiums with importers at $17-21/mt to Singapore high sulfur fuel oil cargoes for April loading, down from $26-30/mt for March, suppliers said Thursday. The March premiums were historic highs due to high premiums in the Singapore high sulfur fuel oil market combined with less inflows from Europe, industry sources said. The premiums dropped after peaking mid-February. Premiums for Singapore 380 CST cargo averaged $10.38/mt in February. The premium dropped to $4.21/mt over March 1-30, and the fall was attributed to higher arbitrage volumes into Singapore market. As much as 4.2 million-4.6 million mt of residual oil was expected to arrive in March, up from February's 3 million-3.5 million mt, industry sources said. Singapore is a major source of Hong Kong bunker fuel, and Singapore prices typically impact bunker prices in Hong Kong.
Bunkerwire is delivered daily and focuses on marine fuel prices and supply in major ports worldwide. It is essential reading for those who require accurate and timely data on this market sector.
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