BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR PRIVACY & COOKIE NOTICE
X

Platts Marine


A closer look at Platts shipping coverage


Home Bunker Fuel Tankers
February 18, 2018

Marine News

Marine News

Singapore Q1 ex-wharf 500 CST bunker fuel term at 50 cents to $1.5/mt discount

Singapore (Platts)--28Dec2017/612 am EST/1112 GMT


Singapore ex-wharf 500 CST bunker fuel term contracts for the first quarter of 2018 were concluded at a discount of 50 cents/mt to $1.5/mt to Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, trade sources said this week.

This is lower than the differentials concluded for Q4 ex-wharf 500 CST contracts, which were at a discount of 25 cents/mt to a premium of 25 cents/mt to MOPS 380 CST HSFO assessments.

Demand for the high viscosity fuel for Q1 was little changed from the previous quarter, trade sources said.

"RMK [grade fuel oil] end-demand is mostly from container [vessel] owners, and I didn't hear of any major change in their voyage route," a trader said.

Article continues below...


Request a free trial of: BunkerwireBunkerwire
Bunkerwire

Delivered daily direct to your desktop, Bunkerwire focuses on marine fuel prices and supply in major ports worldwide. Bunkerwire is essential reading for those who require accurate and timely data on this market sector.

Request a free trialMore Information


One possible reason for lower Q1 ex-wharf RMK term differentials could be that more fuel oil cargoes are expected to arrive in Singapore in January and February, trade sources said.

"If the spread on the curve ahead is weakening, sellers will be more aggressive on the offer," another trader said.

The Month 1/Month 2 380 CST HSFO swaps spread, which was assessed at plus $2.75/mt at the start of October, weakened over the past two months to as low as minus 25 cents/mt two weeks ago.

The spread has, however, strengthened in recent days to plus 85 cents/mt Wednesday, S&P Global Platts data showed.

The spot daily ex-wharf 500 CST bunker fuel differential has tracked the decline in cash differentials for 380 CST HSFO cargoes and ex-wharf 380 CST bunkers since October.

The cash differential for the mainstay 380 CST HSFO market fell from plus $2.48/mt on October 2 to be assessed at a premium of $1.41/mt Wednesday, while the spot 380 CST ex-wharf bunker fuel differential against MOPS 380 CST HSFO tumbled from plus $3.62/mt at the start of October to plus $1.98/mt Wednesday, Platts data showed.

The spot ex-wharf 500 CST bunker differential to MOPS 380 CST HSFO stood at minus $2.02/mt Wednesday, down from minus $0.88/mt at the start of October.

Premiums or discounts for physical bunker fuel reflect prices buyers are willing to pay relative to published benchmark values.

Cash differentials for physical fuel oil represent the price buyers are willing to pay for the oil over and above benchmark values published around the day a cargo loads.

--Esther Ng, esther.ng@spglobal.com
--Edited by Geetha Narayanasamy, geetha.narayanasamy@spglobal.com

Platts Email


Copyright © 2018 S&P Global Platts, a division of S&P Global. All rights reserved.