Singapore ex-wharf 500 CST bunker fuel term contracts for February have been concluded at close to a discount of $1.50/mt to Mean of Platts Singapore 380 CST high sulfur fuel oil assessments, trade sources said this week. January term contracts were heard concluded at parity to a discount of $1/mt.
Conclusions for February were heard at close to minus $1.50/mt to MOPS 380 CST HSFO, with most discussions heard in the range of minus $1/mt to minus $2/mt, market sources said. Some discussions were still ongoing for February term contracts, sources said.
“Demand is quite thin, weaker than usual for pre-Chinese New Year,” a trader said. “As a whole it’s OK, but there is hardly any demand spike,” he added.
The spot ex-wharf 500 CST bunker differential to MOPS 380 CST HSFO assessments averaged minus 83 cents/mt in January, down from minus 44 cents/mt in December, S&P Global Platts data showed.
Meanwhile, the spot 380 CST ex-wharf bunker fuel differential to MOPS 380 CST HSFO assessments averaged plus $2.11/mt in January, down from plus $2.97/mt in December.
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.
Source: Hellenic Shipping News.