S'pore bunker fuel sales rise
Saturday, July 14, 2007
MARINE fuel sales in Singapore, the world's top bunker port, rose 8.4 per cent to a record high in June, government data showed yesterday.
Bunker sales climbed to 2.72 million tonnes, up from 2.5 million in May. This was also 24 per cent higher than the same month last year, as shipping continues to grow to fuel booming Asia trade.
The June sales topped a previous record of 2.68 million reached in December, which capped record yearly sales in 2006 on rising vessel arrivals.
The record volumes are in line with all-time high shipping tonnage into the city-state, the world's largest bunkering port, at 122 million gross tonnes (GT), up 1.4 per cent from a month ago. Sales picked up last month despite June average fuel oil cargo prices being at record high monthly levels.
The bunkers 380-centistoke (cst) grade, which accounts for 70-80 per cent of the marine fuels market, was at $351.10 a tonne. However, the Singapore bunkers market had been in discount to the fuel oil cargo market for most of the month, as desperate sellers tried to spur demand. "Bunker volumes are driven more by shipping traffic than by price. In any case, Singapore is the cheapest port in Asia," a Singapore-based bunker supplier said.
"With prices at such high levels, even a 5-10 per cent makes a big difference." Sales of the benchmark 380-cst grade were also at an all-time high of 2.02 million tonnes, up 15 per cent from month-ago and breaching the 2 million-tonne mark for the first time.
However, volumes of the higher-grade 180-cst, which has been in decline as global fleet is renewed and the lower-grade 500-cst fell by 11 per cent and 7.5 per cent respectively.
Reuters
Bunker sales climbed to 2.72 million tonnes, up from 2.5 million in May. This was also 24 per cent higher than the same month last year, as shipping continues to grow to fuel booming Asia trade.
The June sales topped a previous record of 2.68 million reached in December, which capped record yearly sales in 2006 on rising vessel arrivals.
The record volumes are in line with all-time high shipping tonnage into the city-state, the world's largest bunkering port, at 122 million gross tonnes (GT), up 1.4 per cent from a month ago. Sales picked up last month despite June average fuel oil cargo prices being at record high monthly levels.
The bunkers 380-centistoke (cst) grade, which accounts for 70-80 per cent of the marine fuels market, was at $351.10 a tonne. However, the Singapore bunkers market had been in discount to the fuel oil cargo market for most of the month, as desperate sellers tried to spur demand. "Bunker volumes are driven more by shipping traffic than by price. In any case, Singapore is the cheapest port in Asia," a Singapore-based bunker supplier said.
"With prices at such high levels, even a 5-10 per cent makes a big difference." Sales of the benchmark 380-cst grade were also at an all-time high of 2.02 million tonnes, up 15 per cent from month-ago and breaching the 2 million-tonne mark for the first time.
However, volumes of the higher-grade 180-cst, which has been in decline as global fleet is renewed and the lower-grade 500-cst fell by 11 per cent and 7.5 per cent respectively.
Reuters
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