Singapore: Bunker prices in Singapore have hit their lowest level in around five and a half years, and are expected to fall even lower as the price of crude oil continues to trend downwards.
Today, the outright price of Singapore 380 CST ex-wharf bunker fuel fell to $348.50/tonne, according to Platts reports.
This is the lowest price seen since May 18, 2009, when the outright price was $340/tonne.
Low demand has caused the price to drop by an average of $10/tonne each day this week, according to Platts price assessments.
Buyers are reportedly seeing weak demand from shipowners to whom they would resell the fuel on a delivered basis.
Bunker suppliers are slowing returning to trading on open credit terms, having switched to bank-guaranteed Letters of Credit and cash terms in the days following the recent collapse of OW Bunker, the world’s biggest bunker supplier. This could help boost demand, traders told Platts. [12/12/14]