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Singapore bunker prices eased on Monday, despite stable spot fuel oil cargo levels, on poor-to-moderate demand, traders said.

Dealers said 380-centistoke bunker fuel oil was pegged at $188-$190 a tonne, down $1 from Friday, while 180-cst prices were pegged at $193-$195, traders said.

Despite a tight prompt market, prices eased because some suppliers offered at lower-than-expected levels to attract enquiries.

"Most suppliers are not offering for deliveries before September 4 as they are concerned that they may not be able to pick their term ex-wharf supplies for those dates," a Singapore-based trader said.

"There are few enquiries today as most shipowners are holding back in the belief that prices will fall further. Also, it is a holiday in London so many European buyers are out."

Also, 180 cst bunkers fell by a larger margin of $3 a tonne due to cheaper gas oil levels. Gas oil is typically used to blend high-viscosity fuel into 180 cst.

As its value falls, the price-spread between the 2 grades of bunker fuel narrows.

An independent sold one lot of 380-cst totalling 800 tonnes, for September 4 delivery, at $188 a tonne.

Copyright Reuters, 2004


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