Business

Argus Media: LSFO bunker spreads at record lows

Lower demand and improved supply logistics for LSFO main factors behind the narrowing of price premium over HSFO.

Published

6 years ago

February 28, 2020

Admin

Erik Hoffman and Enes Tunagur of global energy and commodity price reporting agency Argus Media on Wednesday (26 February) issued a report analysing the diminishing LSFO fuel spread over 3.5% sulphur marine fuel:

Lower demand and improved supply logistics for low-sulphur marine fuel have pushed its price premium to high-sulphur marine fuel to all-time lows at the world’s three largest bunkering hubs.

The premium of 0.5% sulphur marine fuel oil (0.5% fuel oil) over 3.5% sulphur 380cst marine fuel oil (3.5% fuel oil) has narrowed most sharply in Fujairah. Since 30 December last year — when it was at its highest — the premium has come down by 72%, from $497.50/t to $140.50/t yesterday.

In Rotterdam it dropped by 60% from a high of $309.50/t on 30 December to $125/t yesterday. The equivalent barge fob price premium for 0.5% sulphur fuel oil fell even more steeply in Rotterdam over the period, dropping by 64% from $323.25/t on 3 January to $116.50/t yesterday. Rising European fuel oil supply and inflows from Scandinavia weighed on 0.5% fuel oil fob barge prices. Fuel oil output in the EU-16, including high and low-sulphur fuels, was at its highest in January since April 2019 at 1.08mn b/d, Euroilstock data showed. Fresh 0.5% fuel oil production boosted output.

In Singapore the premium has narrowed by 58% since its widest on 2 January, from $370.50/t to $155.25/t yesterday.

Underlying front-month Ice Brent and Ice gasoil values have contributed to bring the low-sulphur premiums down. But their impact on the premiums has not been as sharp as the drop in 0.5% fuel oil prices.

Front-month Ice Brent and Ice gasoil prices came down by 20% and 24%, respectively, between 30 December and yesterday. This compares with 0.5% fuel oil prices, which have fallen by 43% in Fujairah and 31% in Rotterdam since 30 December, and 38% in Singapore since 2 January.

Global 0.5% fuel oil demand peaked in December amid limited supply logistics as shipowners were scrambling to secure compliant fuel before the IMO’s 0.5% sulphur cap was implemented on 1 January.

Delivery times for 0.5% fuel oil have improved significantly since the weeks leading up to the sulphur cap. In late November, shipowners had to book eight days in advance to get 0.5% fuel oil when demand for IMO-compliant fuel started picking up. A barge shortage in Fujairah around the same time caused loading delays of 2-4 days at terminals. Barge queues also limited 0.5% fuel oil supply in Rotterdam and led suppliers to charge premiums of around $20/t for prompt deliveries.

The price for 3.5% fuel oil did not collapse around 1 January, as some predicted, but has held up better than 0.5% fuel oil and 0.1% sulphur marine gasoil (MGO) prices in 2020. Since 30 December the 3.5% fuel oil price has fallen by 15% from $340/t to $290/t in Singapore, held at $279.50/t in Rotterdam, and risen by 10% from $268.50/t to $295/t in Fujairah.

The US has replaced Singapore as the largest cargo buyer of 3.5% fuel oil from Russia — the world’s largest producer — in 2020, as bunkering demand for the non-compliant product dropped along with delayed scrubber installations. Fresh demand from US refineries resulted in a rebound of 3.5% fuel oil barge fob prices, driving values in northwest Europe from a low of $179/t on 29 November to $265/t yesterday.

More scrubber-fitted vessels are expected to return to operation in March and April to boost demand for 3.5% fuel oil, which could add upward price pressure and narrow the spread.

Some suppliers are reassessing demand for 3.5% fuel oil and possibly allocating more storage and barge tank space to it, which would add downward price pressure.

Photo credit and source: Argus Media
Published: 28 February, 2020

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

16 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

16 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Published

16 hours ago

July 21, 2026

Admin

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post.

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024.

Photo credit: Pacific International Lines
Published: 21 July, 2026