Asia residual fuel market: Key market indicators this week

Singapore — Singapore's supply of low sulfur bunker fuel remains sufficient to meet demand during the week of March 8, bunker traders said, although the volatility in crude oil markers over the previous week is likely to set the tone for this week.

Meanwhile, rising temperatures in Bangladesh will lead to an increase in high sulfur fuel oil imports beginning March, as the country seeks to meet the rise in power generation demand.

MARINE FUEL 0.5% SULFUR

**The Singapore Marine Fuel 0.5%S March-April backwardation early March 8 was pegged at $2.25/mt, steady from the assessment at the Asian close on March 5, with bids at $1.75/mt against no offers, the Intercontinental Exchange and brokers' data showed.

**The North Asian bunker market is expected to see barge and berth congestions due to rough weather this week, especially in South Korea and Zhoushan, as loading schedules will likely be delayed, market sources said.

**South Korea's loading schedules had already been pushed back the week prior, which resulted in tight supply for prompt deliveries. Market sources said some South Korean refiners can accept deliveries only after March 10-11, bunker traders said.

**Activity in the Singapore low sulfur bunker fuel market will depend on the direction that crude oil benchmarks will take in the week of March 8, bunker suppliers said, as the rise in prices over March 8-5 had kept buyers on the sidelines.

**The Singapore-delivered Marine Fuel 0.5%S bunker premium to Singapore Marine Fuel 0.5%S cargo assessments was $1.99/mt higher week on week at $14.23/mt on March 5, Platts data showed.

HIGH SULFUR FUEL OIL

**According to brokers' indications and ICE data, the Singapore 380 CST high sulfur fuel oil April-May spread was pegged at $2.50/mt early March 8,, lower than the March 5 assessment of $2.70/mt.

**Bangladesh, the largest importer of HSFO in South Asia, is due to step up HSFO imports in March, estimated at 350,000 mt, compared with 300,000 mt in February, to meet an anticipated increase in power demand as local temperatures rise, the president of Bangladesh Independent Power Producers' Association told Platts.

**Thin inquiries for high sulfur bunker fuel in the week ended March 5 are expected to continue in the near-term, with most shipowners having secured the product on term basis for most of March.

** Spot high sulfur bunker demand is expected to pick up towards the end of the month with the increase in vessels completing scrubber installations due to call at the port of Singapore.

- The Singapore-delivered 380 CST bunker premium to Singapore 380 CST HSFO cargo assessments was $1.89/mt higher week on week at $13.51/mt on March 5, Platts data showed.