Singapore ex-wharf 500 CST bunker fuel term contracts for December have been concluded at parity to a discount of 50 cents/mt to Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, trade sources said this week.
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This reflects a slight downward move month on month, with November term contracts heard done at around parity to a premium of 50 cents/mt. "[It is] a little bit lower only," a trader said.
Despite the fall in the premiums for December term supply, one trader noted that the spot market for 500 CST was finding support from a relative shortage of higher viscosity supply.
"High viscosity is tight," the trader said.
Spot ex-wharf 500 CST bunker differentials to MOPS 380 CST HSFO assessments averaged 10 cents/mt in the first four trading days of December compared with minus 16 cents/mt in November and minus 79 cents/mt in October, S&P Global Platts data showed.
The spot 380 CST ex-wharf bunker fuel differential to MOPS 380 CST HSFO assessments in the first four trading days in December averaged $3/mt. The differential averaged $3.06/mt in November, compared with $2.65/mt in October, Platts data showed.
Premiums or discounts for physical bunker fuel reflect the prices buyers are willing to pay relative to published benchmark values.
Cash differentials for physical fuel oil represent the price buyers are willing to pay for the oil over and above benchmark values published around the day a cargo loads.
Platts assesses Singapore fuel oil cargoes at 4:30 pm Singapore time (0830 GMT) and Singapore bunker markets at 5:30 pm Singapore time.
--Daniel Colover, email@example.com
--Edited by Irene Tang, firstname.lastname@example.org