Bunker busting: Fuel costs for vessels plummets
Both crude (in blue, LHS) and Oceanconnect Singapore 380 bunker spot price (in orange, RHS) have fallen
High sulphur bunker fuel prices have collapsed in Singapore this month after jumping previously. After reaching a high of almost 600 USD/mt on 17 September, Oceanconnect Singapore 380 bunker prices fell to below 330 USD/mt by 8 October. While oil prices climbed in September due to the attacks on Saudi Arabian oil infrastructure, bunker prices also were supported in Singapore by a shortage of storage space due to stockpiling of 0.5% fuel oil ahead of 2020. Demand for high sulphur is expected to weaken as the end of the year approaches as operators switch to the new fuel ahead of the deadline.