Singapore Q2 ex-wharf 380 CST bunker contracts seen at MOPS plus $2-$2.25/mt

Singapore ex-wharf 380 CST bunker fuel term contracts for the second quarter have been concluded at premiums of around $2-$2.25/mt to the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, trade sources said this week.

This is lower than Q1 premiums of $2.75-$3.25/mt to MOPS 380 CST HSFO assessments, tracking weaker demand in recent weeks.

Some traders said the Q2 offers seen in mid-March were in the range of $2.25-2.50/mt, while more recent offers were lower at $1.75-$2/mt.

“There is less incentive for people to fix [term contracts] since the spot [price] is so cheap,” a Singapore bunker fuel trader said.

Spot 380 CST ex-wharf bunker differentials to MOPS averaged at plus $2.11/mt in January before falling to an average of plus $1.35/mt in February and $49 cents/mt in March.

The cash differential for Singapore 380 CST HSFO averaged at plus 91 cents/mt in January before falling to an average of plus 57 cents/mt in February and minus 27 cents/mt in March.

Premiums or discounts for physical bunker fuel reflect the prices that buyers are willing to pay relative to the published benchmark values.

Cash differentials for physical fuel oil represent the price buyers are willing to pay for the oil over and above the benchmark values published around the day a cargo loads.

Source: Platts

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