- Ocean Bunkering, the top-three-ranked Singapore bunker supplier owned by oil trading firm Hin Leong, will suspend some marine fuel deliveries from the end of this week, according to news agency Reuters.
- Two sources said Ocean Bunkering was cancelling scheduled deliveries.
- A bunker industry source told that the company was carrying out previously ordered deliveries only, and not offering for new deals.
Ocean Bunkering Services Pte Ltd (OBS), a subsidiary of Singapore trading company Hin Leong, has informed some customers that it plans to suspend marine fuel deliveries from as soon as Friday, three bunker traders who deal with OBS told.
Marine fuel slump
Hin Leong Trading Pte Ltd is in talks with its lenders to extend credit after some banks failed to provide the firm with a letter of credit to buy at least one cargo of oil products.
OBS was the third-largest bunker fuel supplier by volume in Singapore in 2019. The move comes as demand for marine fuel has slumped due to a slowdown in global shipping activity amid the coronavirus outbreak.
Scheduled deliveries cancelled
One of the sources said his company has been told by OBS that it would not perform three bunker deliveries scheduled from April 17 onwards.
Sources at two other customers said they had been told by OBS that it was cancelling their scheduled deliveries.
The coronavirus pandemic has led to an unprecedented slump in fuel demand and hammered oil prices, making it difficult for trading firms to make a profit.
Ocean Bunkering and Hin Leong have yet to make an official comment on media reports over the past week that some of Hin Leong’s lenders have declined to issue it with new letters of credit.
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Source: Yahoo Finance