Singapore bunker prices eased on Thursday, despite higher fuel oil cargoes. Bunker fuel of 380-centistoke (cst) grade was pegged at $190-$192 a tonne, down $1 from the previous trading day with the premium to cargo levels fell $1.25 to 25 cents a tonne. "Demand is heavy and buying pressure is driving prices down despite the tight cargo situation. The premium always shrinks when cargo prices are high, at above $190 a tonne levels," a Singapore-based trader said.

"These sellers are taking a punt that the upside is limited and that prices are already as high as they can get," the trader added. "Given the scenario, they would rather sell now to bring up their monthly average levels."

Copyright Reuters, 2005