Sales of shipping fuel in Singapore, the world’s biggest market for so-called bunker, climbed 17 percent in March as a drop in prices spurred demand.
Bunker sales rose to 3.6 million metric tons last month, compared with 3.1 million tons in February, the lowest in at least 13 months, according to data from Singapore’s Maritime and Port Authority today. Cargo volume at Singapore rose to 47.9 million tons, the most since April 2011.
“High fuel prices have limited bunker sales in February, while I expect sales to rebound further in April given the fuel cost is supposed to go down with crude prices, ” said Oliver Imaizumi, a senior trading manager at PetroSummit Pte in Singapore, a unit of Sumitomo Corp. (8053), Japan’s third-largest trading company.
The Singapore 380-centistoke bunker spot cargo price has fallen 3.2 percent since rising to the highest in more than three years in February, according to data compiled by Bloomberg. It was at $721.50 a ton yesterday.
Lower rates in Singapore compared with ports in other regions may also attract more ships to buy fuel in the island state, Imaizumi said. Bunker at Fujairah (.F-SBUNK) in the United Arab Emirates cost $7 a ton more than Singapore prices on April 12, according to Bloomberg data.
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