World News
Singapore Bunker Trader to Fold Following OW Bunker Exposure
Turkish oil company Opet Thursday was reported to have plans to close its Singapore fuel oil trading business after heavy exposures to insolvent companies, Reuters reports.
The Singapore bunker trader, Opet Trade (Singapore) Pte. Ltd. (Opet Singapore), is understood to have been owed a total of $33.2 million from OW Bunker Far East and Dynamic Oil Trading, which went bankrupt last year.
Actual losses may fall short of that total due to insurance coverage, though.
Opet Singapore was also reported to have had exposure to the collapses of Baxus Marine in 2012 and Vanguard Energy in 2014.
A company source revealed the subsidiary was closing primarily due to Turkish tax rules surrounding the guarantee offered to Opet Singapore by its Turkish parent.
The Singapore office opened in 2008, and is understood to have operated with about a dozen employees.
According to traders' estimates, Opet Singapore is said to have sold around 100,000 to 150,000 tonnes of fuel oil per month.
Earlier this week, it was reported that Singapore's Tankoil Marine Services appears to be operating unhindered despite having been heavily indebted to OW Bunker's Singapore companies when they collapsed.
OW Bunker filed for bankruptcy in November 2014.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 644.50 | 1.00 | 782.00 | 10.50 |
| Rotterdam | 590.00 | 10.50 | 750.50 | 9.00 |
| Houston | 608.50 | 11.00 | 777.00 | 10.50 |
| Fujairah | 643.00 | 0.50 | 891.50 | 3.50 |
| Global 20 Ports Average | 658.50 | 3.50 | 848.50 | 2.50 |
| Global 4 Ports Average | 621.50 | 5.50 | 800.50 | 3.00 |
| Global Average Bunker Price | 713.00 | 1.50 | 890.00 | 0.50 |
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