SINGAPORE: Low-sulfur fuel oil supplies at Singapore have tightened on reduced output from refineries and declining sweet crude imports, trade sources and analysts said, driving up refueling costs for shippers at the world’s largest bunkering port.
Spot premiums for very low sulfur fuel oil (VLSFO), or fuel oil with maximum 0.5 percent sulfur content, breached $58 per metric ton to Singapore quotes on Tuesday, hovering at over a four-month high, Reuters data showed.
Premiums for delivered bunker fuel in Singapore held well above $100 per ton this week for prompt delivery dates, trade sources said.
Oil supply uncertainties following the US-Iran war have largely driven up marine fuel costs for ships globally.
“Current price strength is likely to extend into September as low-sulfur blending components and heavy-sweet crude arrivals remain limited,” said Emril Jamil, a senior research manager at Kpler.
