IFO380, IFO180 reach record highs in Singapore
Singapore IFO380 bunker prices today reached their highest levels since Bunkerworld began recording data from the island state port, hitting $224 per metric tonne (pmt).
Prices rose by $4.50 pmt, or 2%, as fuel oil assessments also climbed by $4 pmt, backed by a single deal, and crude oil prices, driven by a wave of investment from fund managers diversifying out of equities and treasuries, threatened October's record high of $55.67 a barrel.
Prices for IFO180 also saw record highs, reaching $231 pmt and tracking the strengthening of Singapore cargo 180 centistoke (cst) prices, which hit a 24-year high of $225.49 pmt.
With U.S. crude oil adding 3 cents to $54.98 a barrel in early trading today, sentiment suggests that further rises can be expected in Singapore and other Asian ports through the week, despite moderate demand from shipowners.
Gains in bunker prices occurred in a tightly supplied bunker market, coupled by an inexorable rise in Singapore fuel oil 380 cst prices, which saw high sulphur fuel oil (HSFO) in Singapore reach a 24-year high of $222.07 pmt in paper trading today.
Prices have firmed on expectations that the Chinese and Vietnam will import more cracked HSFO cargoes in the second quarter.
Exacerbating renewed fears of tight cargo avails, Bunkerworld reported yesterday that Saudi oil giant Saudi Aramco had announced it would suspend exports of 380 cst HSFO from its Ras Tanura refinery through the country's summer months.
The company exported in excess of 500,000 mt of 380 cst HSFO January through March, reports said yesterday.
According to Platts reports, the last time Singapore 180 cst HSFO hit today's levels was on December 30, 1980, when it hit $227.50 pmt.
Prices rose by $4.50 pmt, or 2%, as fuel oil assessments also climbed by $4 pmt, backed by a single deal, and crude oil prices, driven by a wave of investment from fund managers diversifying out of equities and treasuries, threatened October's record high of $55.67 a barrel.
Prices for IFO180 also saw record highs, reaching $231 pmt and tracking the strengthening of Singapore cargo 180 centistoke (cst) prices, which hit a 24-year high of $225.49 pmt.
With U.S. crude oil adding 3 cents to $54.98 a barrel in early trading today, sentiment suggests that further rises can be expected in Singapore and other Asian ports through the week, despite moderate demand from shipowners.
Gains in bunker prices occurred in a tightly supplied bunker market, coupled by an inexorable rise in Singapore fuel oil 380 cst prices, which saw high sulphur fuel oil (HSFO) in Singapore reach a 24-year high of $222.07 pmt in paper trading today.
Prices have firmed on expectations that the Chinese and Vietnam will import more cracked HSFO cargoes in the second quarter.
Exacerbating renewed fears of tight cargo avails, Bunkerworld reported yesterday that Saudi oil giant Saudi Aramco had announced it would suspend exports of 380 cst HSFO from its Ras Tanura refinery through the country's summer months.
The company exported in excess of 500,000 mt of 380 cst HSFO January through March, reports said yesterday.
According to Platts reports, the last time Singapore 180 cst HSFO hit today's levels was on December 30, 1980, when it hit $227.50 pmt.
Alisdair Pettigrew | Tue Mar 15 18:44 GMT 2005