Asia/Pacific News
Tight Supplies Drive Singapore Delivered Premium to Cargoes to 20-Month High
Tight supplies have driven the premium for VLSFO delivered in Singapore over local cargo prices to the widest level in more than 20 months.
The premium widened to $30.28/mt on Thursday, according to price reporting agency S&P Global Platts, the most since April 30, 2020.
Last-minute prompt demand ahead of the Christmas holidays and low inventories are reported to be behind the move. Tight supplies are likely to persist at least until the second half of January, Platts said.
Singapore delivered VLSFO stood at $615.50/mt on Thursday, according to Ship & Bunker pricing, at a $5.50/mt premium to the G20 Index of prices at 20 leading bunkering ports. The premium was $1/mt a week earlier. Singapore's price level flipped from a discount to a premium to the G20 Index in early November, and has largely remained there since.
