11-09-2018

South Korea bunker spread to Singapore narrows on easing tightness

The delivered bunker fuel price spread between South Korea and Singapore narrowed in recent days with easing supply tightness in the South Korean market.

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, Platts data showed. The spread was at a 20-month wide at $43.50/mt on August 28, 2018, and was last wider on February 2, 2017 at $49.50/mt, the data showed.
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.

“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.

Source: Platts

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