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Singapore bunker prices were higher on Wednesday, tracking higher fuel oil cargo values as bunker premiums stayed at around $7-$8 a tonne levels, traders said.

Prices for 380-centistoke (cst) bunker fuel were pegged at $316-$318 a tonne, up $8 from the previous day, with the bunker premium - the differential between bunker prices and fuel oil cargo values - inching up 75 cents to $7.88.

"The bunker premium seems to be holding at around $7-$8 a tonne but more and more players are selling at lower levels. Some deals were heard at around $314-$315," a Singapore-based trader said.

"I wouldn't be surprised if the bunker premiums of $5-$6 a tonne become the norm by the end of the week. I was holding offers at $316 but most buyers didn't even give me a sniff."

Premiums are still relatively high compared to average levels, with typical bunker premiums at around $2-$4 a tonne.

In the regional market, prices fell across the board from week-ago levels but Hong Kong premiums remained firm at around $40-a-tonne levels due to supply shortage.

Traders said ExxonMobil, one of the three main suppliers into the territory, had deferred the arrival of an 80,000-tonne parcel.

Copyright Reuters, 2005


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