World News
Singapore Bunker Demand Widens East-West Fuel Oil Swap Spread
Strong bunker demand in Singapore has widened the East-West fuel oil swap spread, with the difference between FOB Singapore 180 CST high sulfur fuel oil and FOB Rotterdam barge fuel oil now at its widest point since the data began being tracked by Platts at the beginning of October 2014, Platts reports.
The numbers are as of trading close on Friday, January 23, 2015.
Sources said that the end-user bunker fuel market in the city-state have been on an upward trend.
But while Singapore prices have continued gaining in strength, prices in Rotterdam have remained weak due to oversupply, according to European sources, who attributed much of the extra oil to vast amounts of Russian product.
"Rotterdam is long on fuel oil. Everyone is trying to find homes for the oil. We need [to fix] more VLCCs (very large crude carriers) to balance the market," said a trader.
Late last year, Russia, who is the world's second largest exporter of oil, maintained its production even in the face of global oversupply and plunging oil prices.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
Popular Now More
-
Apr 24Non-compete clauses have not always been used in a fair and reasonable way in the bunker industry, Maritime Recruitment Company Ltd's Vernon Jayanathan tells Ship & Bunker. -
Apr 24The arrests were both on Monday. -
Apr 23The ship had come to Singapore from St Petersburg.