Delivered bunker fuel prices in Fujairah dipped below Singapore prices by $7.50/mt amid ample supply in Fujairah, amounting to a seven-week wide price spread, S&P Global Platts data showed.
The Fujairah-Singapore delivered 380 CST bunker price spread was minus $7.50/mt at Friday’s close versus parity on December 27, and had widened for the fourth consecutive trading session, Platts data showed. The spread was last wider at minus $11.50/mt on November 14, 2018.
Fujairah trade sources said that cargo and bunker fuel supply was ample.
“Avails are fine while demand is still slow at the start of the year, though we foresee that it will slowly pick up in January,” a Fujairah bunker trader said.
“Monthly demand should still be stable at around 700,000 mt per month this year with no huge fluctuations, while Iranian cargoes are still flowing in,” the trader added.
Fujairah heavy residue stocks had gained 0.4% on the week to 6.216 million barrels, in the week ended December 31, according to the Fujairah Energy Data Committee.
In the Singapore bunker market, demand and supply were relatively balanced for the near term, sources said.