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Hong Kong bunker suppliers expect more demand as shipowners divert from Singapore
[SINGAPORE] Hong Kong bunker suppliers are expecting up to 20 per cent more inquiries from shipowners who have had fuel contracts cancelled after the world's largest supplier announced its bankruptcy last week, sources said on Friday.
Since the fall of OW Bunker, marine fuel prices in Singapore have climbed steadily and spiked to their highest in more than two years on Thursday, as tightening of credit led to a supply crunch amid prompt demand. "My impression is enquiries have gone up 20 per cent, though it's hard to put a figure to it. There were more prompt orders for delivery between five to ten days," said a Hong Kong-based marine fuel seller. "End-users are those that have had fuel fixed by OW." Hong Kong's 380-cst marine fuel was at least US$10 a tonne cheaper than that in Singapore, on a delivered basis, on Thursday.
Delivered marine fuel oil in Singapore was priced at least US$8 a tonne above oil lifted from terminals, traders said, a trend rarely seen previous as wary sellers now factor in risks of default.