Singapore low-sulfur marine fuel arbitrage arrivals from West could decline in October
Singapore’s low sulfur fuel oil arrivals from Western markets could decline in October, as steeper freight rates have rendered arbitrage flows uneconomical. The world’s largest bunkering hub, Singapore, is expected to receive 1.5 million-1.6 million mt of LSFO from the West in October, down from 1.6 million-1.8 million mt in September, according to estimates from ...
Singapore's low-sulfur marine fuel oil (LSFO) arrivals from Western markets could decrease in October, due to rising freight rates making the arbitrage flow unprofitable. Singapore, the world's largest bunkering hub, is projected to receive 1.5 million-1.6 million metric tons (mt) of Western LSFO in October, a drop from 1.6 million-1.8 million mt in September, according to estimates from local traders. There may be an increase in cargo inflows towards the end of the month and into November.
The first half of October appears tight, but traders anticipate Western cargoes later in the month. The East-West LSFO spread, which narrowed from $145/mt to $152/mt in September, now stands at $30.33/mt over the Mean of Platts assessment, driven by stronger demand for October-loading cargoes. However, prompt availability of LSFO could remain limited, as European very low-sulfur fuel oil is anticipated to enter Asia's LSFO blending pool in the coming weeks. The Middle East conflict continues to impact near-term supply fundamentals from the Persian Gulf.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
