Bunker demand in Singapore is expected to rally in the third quarter. File Image / Pixabay
Delivered bunker margins over local cargo prices jumped over the past week in Singapore, according to price reporting agency S&P Global Platts.
The premium for delivered very low sulfur fuel oil (VLSFO) over cargo prices at the world's largest bunkering hub advanced to $24.52/mt on Friday, Platts reported Monday, from $19.71/mt a week earlier.
Weakness in the global bunker market has remained persistent in the second quarter because of lower freight demand in the midst of the COVID-19 pandemic, but demand is expected to rally somewhat in the third quarter.
VLSFO prices in Singapore dropped over the week to reach $324.50/mt on June 26, according to Ship & Bunker pricing, down from $335/mt a week earlier.