As the South Korean market recovers, the bunker fuel price spread between South Korea and Singapore narrowed down in recent days, reports Platts writer Jeslyn Lerh and editor Liz Thang.
- As per an article published by them,the South Korea-Singapore delivered 380 CST bunker price spread narrowed by $8/mt day on day to $18.50/mt at Friday’s close.
- The spread was at a 20-month wide at $43.50/mt on August 28, 2018.
- Platts data shows that it was wider on February 2, 2017 at $49.50/mt
Why has the tightness eased?
Supply tightness in the South Korean bunker market has eased with the arrival new cargoes from SK Energy and Hyundai Oil Bank, trade sources said.
While Singapore remains the main bunkering hub for shipowners in Asia, there were some customers who opted to bunker at North Asian ports like South Korea and Japan in August despite higher prices than Singapore.
The Owners’ Dilemma
“Some owners were very worried due to the off-spec problem [at Singapore]… they still call at Singapore but some went over there [Korea and Japan] to take bunkers,” a bunker fuel trader said.
Bunkering sentiment had been more cautious at the Singapore port since end July due to a spate of quality concerns with US origin fuel oil.
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Platts
