Port, Singapore. File image/Pixabay.
Supply side pressures have pushed up the price of delivered 380 centistokes (cSt) grade fuel oil to record highs in the southeast Asian bunkering hub.
"A severe shortage of cargo paired with a reduction of suppliers and barges is causing this extreme tightness", a Singapore-based bunker trader was quoted as saying by price reporting agency Argus Media.
Market estimates put total fuel oil imports to Singapore in August at around 5.4 million metric tonnes against a similar volume seen in July.
Much of this material is likely to be low-sulphur, straight-run, fuel oil, vacuum gasoil or other low-sulphur fuel oil components, rather than high sulfur fuel oil, the report said.
Regionally, players are said to be reducing stocks of high sulfur fuel oil to store more low sulfur fuel oil ahead of the IMO2020 rule change in place from the start of next year.