Tight provide of low sulfur gasoline oil in South Korea has prompted refiners to carry off concluding time period bunker gasoline contracts for the fourth-quarter, whereas in Singapore mild sulfur gasoline oil demand fundamentals from the bunker market have stabilized, in accordance with merchants.
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Weak point within the low sulfur marine gasoil market is unlikely to lead to dwindling demand for LSFO, with the variety of marine gasoil barges serving as a limiting issue on LSMGO demand, they added.
MARINE FUEL 0.5% SULFUR
– The Singapore Marine Gas 0.5percentS November/December timespread was secure mid-morning Oct. 12, from the Oct. 9 evaluation, at minus $1.65/mt, brokers’ indications confirmed.
– Demand for low sulfur bunker gasoline in Singapore is anticipated to stay largely secure, with the rise in inquiries for low sulfur marine gasoil seen at the beginning of the month truly fizzling out, even because the unfold between the 2 merchandise stays slim. Within the week ended Oct. 9, LSMGO averaged $5.60/mt greater than LSFO, narrowing from $8.20/mt within the week to Oct. 2, Platts information confirmed.
– The Singapore-delivered Marine Gas 0.5percentS bunker premium to Singapore Marine Gas 0.5percentS cargo elevated $2.05/mt to $16.55/mt on Oct. 9, from $14.50/mt on Oct. 2, Platts information confirmed.
– Within the North Asian market, poor demand and ample provide in Japan’s bunker gasoline market is anticipated to weigh on differentials, with merchants struggling to maneuver volumes to satisfy their month-to-month quota. Merchants in Japan obtain a hard and fast month-to-month quantity quota beneath contracts with Japanese refineries. Reflecting the weaker fundamentals, the Tokyo Bay delivered marine gasoline 0.5percentS differential to benchmark FOB Singapore 10 ppm sulfur gasoil cargo assessments fell $26.40/mt week on week to hit a one-month low of minus $11.66/mt on Oct. 9, Platts information confirmed.
– Within the South Korean market, refiners are holding again on time period discussions for bunker provide contracts, in accordance with merchants, as spot market premiums have been trending greater, having flipped from a reduction in September to a premium in October, after reducing provide by 50,000-100,000 mt of low sulfur gasoline oil, market sources stated.
HIGH SULFUR FUEL OIL
– Based on brokers’ indications and ICE information, the Singapore 380 CST excessive sulfur gasoline oil November/December timespread was secure at minus 85 cents/mt in contrast with the Oct. 9 evaluation.
– Asian excessive sulfur gasoline oil provide is unlikely to extend as refiners proceed to chop their run charges globally, merchants stated. The refiners have been reducing their working charges as a consequence of weak demand for center distillates, in accordance with the sources.
– In the meantime, demand for Asian HSFO has declined because the summer time peak season is over, merchants stated. Whereas demand for top sulfur bunker gasoline from scrubber-fitted ships is anticipated to rise, complete demand is declining because of the drop in demand from the facility sector, a dealer stated.
– Within the downstream bunker market, the supply of HSFO bunkering barges is proscribed in Singapore amid vessel delays following two current typhoons in Japan and South Korea. Not less than two key HSFO bunker suppliers stated the earliest they will make deliveries is from Oct. 20 onwards.
– The Singapore-delivered 380 CST bunker premium to Singapore 380 CST HSFO cargo assessments declined $3.25/mt to $19.32/mt on Oct. 9 from $22.57/mt on Oct. 2, Platts information confirmed.