By Srinivas Chowdary Sunkara // petrobazaar // 24th January 2021.
The Bunker Price Index consist of a range of prices for 380 HSFO, MDO and MGO(Gasoil) in the main world hubs traded up across the major world ports yesterday. In Singapore, HSFO 380 cSt prices traded $9.50 or 2.68% low to close at $338 on Friday. MDO price showed uptrend while MGO price indexes showed a downward evolution. Meantime, The world crude oil price indexes moved slightly down amid bleak demand outlook followed by resurgence in Chinese virus numbers while U.S stock numbers also weighed on price complex.
FUEL OIL PRICE MOVEMENTS
As a result of lowering crude values, low sulfur bunker fuels slipped across main bunkering ports on Friday. Lead time for VLSFO in Singapore is steady, required 8-10 days. Supply of HSFO continuously been tight in Singapore. The lead time has come down by 3 days from last week to 12 – 15 days now. Lead time for LSMGO increased by 1 day, Now requiring up to six days. Singapore residue fuel oil stocks slipped by another 1% during the week. according to enterprise Singapore data. Singapore price spread between HSFO and VLSFO is high that was widened above $110 per Mt this week, The highest level since beginning of March last year. Singapore VLSFO market got strengthened due to increased Fuel oil demand from utilities. Several power plants usually use LNG. spike in LNG prices has made FUEL OIL more attractive input. Delayed LNG cargo shipments from West Asia also pushed fuel oil demand up. Same trend has been seen in Japan with fuel oil availability tightening in country's ports with spike in demand from domestic power plants. In India, Furnace oil retail prices are trended to move up moderately for the first half of Feb as per the available data.
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