The Mean of Platts Singapore 380 CST high sulfur fuel oil jumped to a 46-month high on Tuesday due to strong crude oil prices and tightening supply, S&P Global Platts data showed.
The MOPS 380 CST was assessed at $474.08/mt Tuesday, the highest since October 31, 2014, when it was assessed at $476.05/mt, the data showed.
The stronger price followed an upward movement of crude oil, traders said.
The front-end Brent futures price at Asian close jumped to $82.17/barrel Tuesday, the highest since November 10, 2014, Platts data showed.
Singapore is likely to receive only 3 million-4 million mt of arbitrage cargoes from the West in October, down from 4.5 million mt in September, fuel oil traders said. The traders attributed the decline to refinery turnarounds especially in Europe and the start-up of new cokers.
This has raised the 380 CST October/November spread to $5.70/mt on Tuesday, the highest since August 24, Platts data showed.
Meanwhile, bunker fuel prices at the Singapore port also hit levels close to four-year highs, owing to the uptrend in crude futures and fuel oil prices. Singapore ex-wharf 380 CST bunker fuel was assessed at $484/mt Tuesday, up $7/mt day on day, Platts data showed. The grade was last seen at this price on October 30, 2014.
Singapore delivered 380 CST bunker fuel was assessed at $488/mt Tuesday, also up $7/mt day on day. The grade was last assessed higher at $506/mt on October 14, 2014.
“But demand is slow for now as [ICE Brent] crude has already broken past the $81[/b] mark,” a Singapore bunker fuel trader said late Tuesday. Prompt supply was also tight as some sellers already had committed barging schedules, with most offers located from early October delivery and beyond.
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