Bunker margins in Singapore have improved slightly over the past week. File Image / Pixabay
Bunker margins in Singapore have started to rally over the past week, as early signs emerge of renewed demand from shipping.
The premium for very low sulfur fuel oil (VLSFO) delivered in Singapore over local cargo prices gained $3.18/mt to $14.57/mt in the week to Friday, price reporting agency S&P Global Platts reported Tuesday.
The premium is a simple measure of the profitability of bunker sales in the region.
The margin hit a ten-week high of $36.08/mt on April 30 as the Hin Leong crisis increased demand in the spot market, but it eased again in early May as new suppliers came in to fill the gap.