World News
Coronavirus and Extended New Year Hit Singapore VLSFO Premium to Rotterdam
Weakening bunker demand in Asia as a result of the Coronavirus outbreak and the extended Lunar New Year holiday in China has helped drive the premium for very low sulfur fuel oil (VLSFO) at Singapore over Rotterdam's prices to the narrowest level in six weeks.
The premium narrowed by $7/mt to $100/mt on Friday, according to Ship & Bunker pricing, the least since 20 December.
Singapore's VLSFO prices shot up at the start of IMO 2020, trading above marine gasoil prices on several occasions.
The VLSFO premium at Singapore over Rotterdam averaged $128.50/mt last month, up from $92/mt in December.
Even after the narrowing seen in recent days, the wide premiums over Northwest European levels may be enough to see bunker demand being driven to the west.
For comparison, Singapore's prices for high sulfur 380 CST fuel oil -- previously the dominant bunker fuel -- started 2019 at just a $47/mt premium to Rotterdam.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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