Stagnating demand in the Singapore low sulfur fuel oil market is not expected to ease in the April 19-23 week, says an article published in S&P Global Platts.
Demand for marine fuel 0.5% sulphur
The Singapore Marine Fuel 0.5%S May-June backwardation were range bound, with bids at $1/mt against offers at $2/mt, Intercontinental Exchange data showed.
- Delivered low sulfur bunker fuel premiums in China are expected to be capped by elevated supply and production amid poor demand.
- At Zhoushan port, high inventories and stiff competition saw the marine fuel 0.5%S premium to FOB Singapore marine fuel 0.5%S cargo flip into negative territory at minus $2.86/mt on April 16, Platts data showed.
- At Shanghai, the premium plunged $17.98/mt week on week to $2.14/mt on April 16, the lowest since Platts started assessing the grade on July 1, 2019, the data showed.
- Supply in Japan is expected to remain tight as ENEOS’ Negishi refinery at Tokyo Bay undergoes unplanned maintenance, with the shortage seen up until May.
- The competition between prices in Fujairah, Singapore, Hong Kong, and Zhoushan has thinned demand for marine fuel 0.5%S in Singapore. This is likely to put pressure on this week’s demand in Singapore
- As of April 16, Platts data showed Fujairah-delivered marine fuel 0.5%S priced at an $8/mt discount to Singapore-delivered basis for the same grade.
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Source: SPGlobal
