Asia/Pacific News
BP Singapore Fuel Oil Storage Lease Not Renewed: Reports
BP Singapore has not renewed the lease for fuel oil tank storage at Universal Terminal in Singapore, price reporting agency Platts has reported citing market sources.
The company has given up 300,000-340,000 cubic meters (cu m) on a lease that expired at the end of December leaving the company without access to landed storage, the report said.
The move is in line with the weak sentiment prevalent in the fuel oil market which has seen players exit the fuel oil tank storage market in Singapore in recent months.
Tank storage rates for fuel oil have fallen to a low of S$3.90/cu m ($2.96), a level not seen since the early 2000s when rates were around S$3.25-S$3.50/cu m, market sources were cited as saying.
At one time, the Singapore landed storage market for fuel oil could have manage rates of S$8.50/cu m.
