Singapore April bunker sales hit three-month high on better prices
(Reuters) - Sales of marine fuel, also known as bunker fuel, hit three-month highs in the world's biggest refueling hub Singapore in April, the latest official data showed, as prices were more competitive than regional ports.
Singapore's bunker sales data are an indicator of sentiment at one of the world's most major ports and demand also affects fuel oil refining margins in Asia.
Sales climbed for a second consecutive month to 4.25 million tons, up 2% month-on-month and 14% from a year earlier, Singapore's Maritime and Port Authority data showed.
The rise reflected higher vessel calls for bunkering, which totaled 3,495 calls in April, extending gains after hitting two-year highs in March.
"Singapore VLSFO prices were more competitive versus Zhoushan in April, which led to more vessels bunkering in Singapore," said Ivan Mathews, FGE's head of Asia refining and global fuel oil.
"Prices continue to be cheaper than Zhoushan in May to-date, which should continue to support VLSFO sales in Singapore."
Bunker prices for very low sulfur fuel oil (VLSFO) at Singapore were $5 to $20 lower than China's Zhoushan in April and May so far, according to bunker traders.
Sales of LSFO grades totaled 2.71 million tons in April, up 5% month-on-month, the port authority data showed.
Meanwhile, sales of high sulfur fuel oil grades eased 4% from March to 1.19 million tons in April, though climbing 26% from the same month last year, while marine gasoil sales were slightly lower at 327,400 tons.
"Demand in April did pick up compared with February and March, it looks okay in May so far, but I am not sure if it will hold as fuel oil cargo premiums have eased," said a senior bunker fuel trader based in Singapore.
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