Singapore ex-wharf July bunker fuel contracts concluded around $3-3.75/mt

Singapore 380 CST bunker fuel term contracts for July were concluded around premiums of $3-3.75/mt to the Mean of Platts Singapore 380 CST high sulfur fuel oil assessments on an ex-wharf basis, market sources said Monday.

That compared with June term contracts at premiums of around $2-3/mt.

The strengthening in July premiums was based on bullish market sentiment, based on the level of supply coming into Asia — around 3.7 million mt was expected to arrive next month, with 2.4 million mt expected to stay in the Singapore market and the rest heading north.

Most of the supply in Singapore will be of ready grade for the bunker market, while the remainder should be of low sulfur and feedstock grades.

However, some sellers have been heard to be clearing their tanks with offers on the spot market. So, exactly how much oil will roll over to the month of July is not known, trade sources said.

Sources who were initially bullish about July had tempered their expectations to the market being balanced next month — spot premiums had been around $1-2/mt in recent days.
Source: Platts