Asia/Pacific News
Singapore VLSFO Drops to Lowest Level Since Start of 2022
VLSFO prices in Singapore, the world's largest bunkering hub, have dropped to the lowest level since the start of 2022 this week.
VLSFO delivered in Singapore stood at $647/mt on Monday, according to Ship & Bunker data, the lowest level since January 7.
The VLSFO price was at an $11.50/mt discount to Brent crude futures, compared with an average premium of $70/mt this year.
The discount to Ship & Bunker's G20-VLSFO Index of prices across 20 leading bunkering ports was $40.50/mt, compared with this year's average discount of $16.50/mt.
Oil markets in general are in retreat amid nerves over a potential global recession. But Singapore's VLSFO market in particular is under pressure both from refineries maximising distillate output and creating a glut of residual products, and by more Russian fuel oil arriving in the Asia-Pacific market as Europe seeks to phase out its Russian oil imports.
