Market: volatile. File image/Pixabay.
Singapore's 0.5% low sulfur fuel oil (LSFO) market remains "small and volatile", according to price reporting agency Argus Media.
As the bunker market gears up for the global rule change on bunker fuel from the start of next year, "suppliers are hesitant to clean out barges to deliver compliant fuel ahead of 2020 because demand for 0.5% LSFO today remains small and volatile".
Argus continued with the advice that given supplies are limited, "buyers are strongly advised to place their orders weeks in advance".
Most deals have been for testing purposes or for ships going to China which has a 0.5% sulfur limit along most of its coastline.
However, Argus said that it had sold its first clip "at a price in the lower $570 a metric tonne (mt) level" for delivery later on this month.
On May 6, Argus assessed the fuel grade at $573/mt, it said.
Argus started publishing price assessment for International Maritime Organisation-compliant fuel late last year.