Other suppliers in Singapore appear to be picking up the slack while Ocean Bunkering has paused its bunkering operation. File Image / Pixabay
The financial troubles facing oil trading company Hin Leong and its marine fuels unit, Ocean Bunkering, have led to stronger delivered bunker premiums over cargo prices in Singapore this week, according to price reporting agency S&P Global Platts.
The premium for delivered very low sulfur fuel oil (VLSFO) over cargo prices at Singapore widened by $5.11/mt to $12.50/mt by Monday’s close, Platts reported Tuesday.
Cancellations by Ocean Bunkering had led to an increase in spot bunker requirements in Singapore, Platts said.
“There is definitely enough supply in the market, but traders will try and squeeze for higher premiums,” the price reporting agency cited a Singapore bunker trader as saying.
Last week several news agencies reported Ocean Bunkering was suspending marine fuel deliveries from April 17.
Hin Leong’s lenders have reportedly declined to issue the oil trading firm with new letters of credit, leaving the company and its subsidiaries in an uncertain position while its creditors attempt to reclaim their money through Singapore’s courts.