Durban bunker fuel prices fall ahead of Sapref return: traders

The premium of Durban bunker fuel over Singapore, the key market it follows, is shrinking dramatically as BP and Shell offer bunker fuel from storage in advance of the return of their Sapref refinery from maintenance, traders said.
Ex-wharf Durban 180 CST bunker fuel fell $5 to a $25.50/mt premium over Singapore 180 CST delivered bunker fuel Tuesday, its lowest in eight weeks. It was last lower on April 17 at $25/mt, Platts data showed.
In June, BP and Shell quoted more often than in May, bunker traders in the port said, with their indications typically $10-15/mt below Engen indications, the other physical supplier in Durban.
"There is some competition in the market that puts pressure on fuel prices in Durban," one market source said.
Neither BP nor Shell could be reached for comment.
After entering maintenance on April 26, the Sapref refinery's exact restart date is still unknown, traders said. "It could be any time in June," another source said.
A Sapref spokeswoman was not reachable for comment.
Source: Platts