Prices of CST380 heavy fuel oil fell (HFO) to USD205 per tonne in Singapore, the world’s biggest bunkering port by sales volumes.
Bunker prices in Singapore have not been this low since 2005.
Fuel oil traders who spoke to IHS Maritime say it remains to be seen if prices would fall below USD200 per tonne, as oil prices show no sign of recovering.
One trader said, “There is just too much oil in the market and OPEC shows no sign of cutting output. It is inevitable that HFO prices will continue falling. If sanctions on Iran are lifted, more oil will be available.”
Another trader said the downward trend in Singapore’s bunker prices casts doubt on whether LNG bunkering can take off there. “There are no ECAs [emission control areas] in Asia and with the shipping market still depressed, shipowners have no incentive to invest in retrofitting vessels, more so now when fuel oil is so cheap,” he said. “Prices of HFO and marine diesel oil have come down by more than 50% from last year.”