At the world’s largest bunker hub of Singapore, ample LSFO supplies, lagging demand, and stiff competition is progressively weighing on downstream prices, Platts said.

• 0.5%S bunker premiums in Singapore are at a four-month low premium of $14.30/mt over the benchmark FOB Singapore 0.5%S marine fuel cargo.
• The expected year-end spike in demand didn’t quite happen, although it’s still possible to find prompt barge slots in the market, traders told Platts.
• While downstream LSFO demand was seen in Singapore to be at moderate levels, it has lagged the broader supply situation where stockpiles are seen as buoyed.
• Traders expect LSFO flows from the West to range around 2.6m-2.8m mt, amid a viable East-West arbitrage.
• Singapore’s commercial stockpiles of heavy distillates rose for the second consecutive week due to stronger import demand, rising 1.8% on the week to 18.349m bbl.