The premium for Very Low Sulfur Fuel Oil (VLSFO) delivered in Singapore easing in Singapore, reports Ship&Bunker.
VLSFO Margins Easing
According to Platts reports, the premium for VLSFO delivered in Singapore over local cargo prices has eased so far this month, after the financial troubles affecting oil trader Hin Leong saw the margins jump in April.
The premium at Singapore was at $15.11/mt on Friday, down from a nine-week high of $36.08/mt reached on April 30.
Singapore’s bunker market
Premium to be stable
Platts said, citing market sources, that the premium is expected to remain stable this week.
Suppliers halt activities
Hin Leong’s troubles with its lenders caused its marine fuels subsidiary Ocean Bunkering, one of Singapore’s top accredited suppliers to halt its activities in the bunker market there last month, leaving other players to pick up spot enquiries from buyers it was unable to serve.
Market tightening
This left Singapore’s bunker market tightening while the rest of the world’s markets weakened in the face of soft demand and continuous supply.
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Source: Ship&Bunker
