SINGAPORE Dec 6 Singapore term bunker fuel contracts for December were concluded at lower premiums than the previous month as demand from ship-owners remained poor, industry sources said on Thursday.
The ex-wharf premiums were heard to be around $2.00-$3.00 per tonne, according to the sources. November term premiums were at $3.50-$4.00 per tonne.
Bunker premium represents the amount buyers are willing to pay for bunker fuel above published benchmark prices.
As with the month before, interests for the term contracts were slow as some ship-owners are still lifting supply from their fourth-quarter term contracts concluded in September.
"Demand is still weak, I heard some sellers offered as low as $1.00 premium," said a bunker source, who added that ship-owners would prefer sourcing from the spot market if they require additional supply.
The fuel oil market was hit by a supply glut, with heavy volumes of Western fuel oil seen arriving in East Asia since October.
The cargoes consist mainly of ready-made 380-centistoke fuel oil for the marine fuels market, putting pressure on bunker differential which currently hovers around parity, down from a premium of around $6.00 per tonne in early October.
Singapore bunker sales for October inched up 5 percent from the previous month to 3.51 million tonnes, data from the Maritime and Port Authority of Singapore showed. (Reporting by Lee Yen Nee; Editing by Anand Basu)