Singapore 380 CST ex-wharf bunker fuel outright price hits 27-month low

The outright price of Singapore 380 CST ex-wharf bunker fuel hit a 27-month low of $571/mt on the back of weakening crude — Front-month Brent crude futures fell below $100/b on September 8 for the first time in over a year — and falling cargo market, Platts data showed.

The last time the outright price was at such a level was on June 25, 2012 when the 380 CST ex-wharf grade was assessed at $569.50/mt.

On the supply front, the situation in the second half of September has recovered from the slight tightness seen in H1, with more cargoes having arrived in time for September delivery, market sources said. Demand, however, remains weak despite the fall in outright prices. Buyers were still lifting cargoes from term contracts for September or Q3, they added.

October was also looking well supplied, with Western cargo arrivals estimated at around 1 million mt. Cargoes already loaded on vessels heading to Singapore in September are expected to total 1.5 million mt, market sources said earlier.

Total volumes are expected to be at least 4.2 million-4.3 million mt, based on estimates of fixtures moving east in October, while another 350,000 mt or so were likely to be confirmed fixed, taking the total to around 4.6 million mt, more or less the same level as in September, industry sources said last week.
Source: Platts