Asia: Fuel Oil Demand Down; Amidst Crude Gains

Posted by Joseph Keefe
Tuesday, May 27, 2014

Demand for marine fuel in Singapore, the world's largest bunkering hub, is beginning to take a hit as high flat prices kept buyers on the sidelines, traders said.

 

The 380-cst bunker fuel price stood at $604.25 a tonne, and while it dipped 75 cents a tonne from Monday, it was still 0.6 percent higher than last week's average of $600.55 a tonne,
Reuters data showed. "This week's demand is not as good as previous weeks. Flat price wise, anything below $600 a tonne should be able to attract buyers back," said a Singapore-based trader. Bunker prices have hovered above the $600-a-tonne mark since last Wednesday, after being mired below the level for more than a month since mid-March.


The weakening end-user demand has also squeezed the intermonth spread, which refers to the price spreads between June and July swaps, of benchmark 380-cst, traders said. The 380-cst intermonth spread stood at $2.50 a tonne to Singapore spot quotes, down 50 cents from Monday, Reuters data showed.


This was a way to minimize costs, particularly if sales continue to weaken further, as it meant that current inventories to be rolled into the next month will likely increase, traders said. The intermonth spread is an indicator of storage costs, they added.


Reporting by Jane Xie; Editing by Sunil Nair

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Ship Broker Clarkson Looks to Acquire Platou

Top ship broker Clarkson is seeking to acquire Norwegian brokerage and investment bank RS Platou for 281.2 million pounds ($441 million) in a deal that would create

Russian Liftings for Western Options at 12-Year Low

By Gleb Gorodyankin MOSCOW, Nov 25 (Reuters) - Exports of Russian crude oil to Western markets are set to fall by almost a third in December and reach a 12-year

Frontline Disappoints with Deeper 3Q Loss

Frontline, once the world's biggest crude oil tanker company, reported a bigger than expected third-quarter loss on Tuesday and said it is still considering options

Energy

Energy’s Promising Future Threatened

Unrealistic Fears and Overstated Risks obscure the benefits of new seismic data. The United States stands poised on the edge of a bright energy future. After decades

Pile Testing for Wikinger Wind Farm Launched

In October 2014 the first phase of the pile testing campaign for the Wikinger offshore wind farm project was launched after the site’s geotechnical investigation on the Baltic Sea had been completed.

Damen, Palfinger Upgrade North Sea Jack-Up Rig

With the support of Palfinger systems JUMP technology, Damen Shiprepair Vlissingen has completed an upgrade of a Keppel Fels ‘N’ Class drilling rig, one of the largest in the North Sea,

Fuels & Lubes

Is Glycerine the Next Marine Fuel?

Following a year described as “intense activity,” the Glycerine Fuel for Marine Sustainability project (GLEAMS) concluded that Glycerine is a viable, exceptionally clean alternative marine fuel.

Preparing for Low Sulphur Operation

Stricter limitations on sulphur emissions (SOx) will pose many challenges to ships operating in Emission Control Areas (ECAs). If not handled with care, switching

Russian Liftings for Western Options at 12-Year Low

By Gleb Gorodyankin MOSCOW, Nov 25 (Reuters) - Exports of Russian crude oil to Western markets are set to fall by almost a third in December and reach a 12-year

Logistics

Vacant Pier to Help Ease Long Beach Congestion

Pier S temporary depot to relocate empty containers for next five months    The Port of Long Beach expects a “Temporary Empty Container Depot” planned for a vacant

Russian Liftings for Western Options at 12-Year Low

By Gleb Gorodyankin MOSCOW, Nov 25 (Reuters) - Exports of Russian crude oil to Western markets are set to fall by almost a third in December and reach a 12-year

Frontline Disappoints with Deeper 3Q Loss

Frontline, once the world's biggest crude oil tanker company, reported a bigger than expected third-quarter loss on Tuesday and said it is still considering options

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2576 sec (4 req/sec)