- Supplies of high-sulfur fuel oil (HSFO) are tightening in Singapore, narrowing the discount on fuel bills secured by shipowners with scrubber-equipped tonnage.
- Supplies in the region are tightening because of increased demand from the power generation sector during the current LNG price spike.
A recent news article published in the Ship and Bunker states that Singapore HSFO
HSFO and VLSFO in Singapore
Several cargoes are also reported to have turned out to be off-specification upon their
arrival in Singapore, worsening the shortage.
The price spread between HSFO and VLSFO in Singapore — a measure of how much scrubberequipped ships can save on fuel purchases — stood at $75/mt on Monday, according to Ship & Bunker pricing.
That compares with $78.50/mt a week earlier and $92.50/mt at the start of August.
VLSFO-HSFO price spreads narrowed sharply last year in response to the crude-price collapse in the spring, dampening enthusiasm for new orders of scrubbers, but the spreads have largely remained at more healthy levels since the end of 2021.
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Source: Ship and Bunker