Hin Leong's troubles have left fewer bunker suppliers in Singapore in the short term.
The premium for very low sulfur fuel oil (VSLFO) delivered in Singapore over local cargo prices has eased so far this month, according to price reporting agency S&P Global Platts, after the financial troubles affecting oil trader Hin Leong saw the margins jump in April.
The premium at Singapore was at $15.11/mt on Friday, Platts reported Monday, down from a nine-week high of $36.08/mt reached on April 30.
The premium is expected to remain stable this week, Platts said, citing market sources.
Hin Leong's troubles with its lenders caused its marine fuels subsidiary Ocean Bunkering -- one of Singapore's top accredited suppliers -- to halt its activities in the bunker market there last month, leaving other players to pick up spot enquiries from buyers it was unable to serve.
This left Singapore's bunker market tightening while the rest of the world's markets weakened in the face of soft demand and unrelenting supply.