Business

Argus Media: Singapore HSFO bunker premiums ease with higher inflows

Surge in inflows to Singapore could have partially been because of a spike in delivered bunker premiums here owing to contamination issues previously, says a bunker trader.

Published

4 years ago

May 27, 2022

Admin

The premium of high-sulphur fuel oil (HSFO) bunkers in Singapore has retreated to more typical levels, after spiking from April onwards because of several buyers suffering from lifting contaminated fuel.

26 May, 2022

The premium surged to $89/t on 12 April, which are levels not seen since the International Maritime Organisation’s (IMO) sulphur mandate came into effect in 2020, according to Argus data.

But the premium has cooled down considerably over the past few days and was assessed at $18.50/t on 25 May, which was more in line with its longer-term average.

Outright prices for HSFO bunkers in Singapore on 25 May fell by $6.50/t to $$647.50/t from the previous day. This was despite firmer crude and fuel oil paper prices that boosted prices of the other two grades, namely very-low sulphur fuel oil (VLSFO) and low-sulphur marine gasoil (LSMGO).

A build-up of HSFO supply in Singapore this month has been depressing bunker prices, market participants said. Inflows to Singapore from the west of Suez and the Mideast Gulf are at a seven-month high of 1.82mn t (378,700 b/d) this month, last being higher at 2.02mn t (419,500 b/d) in October 2021, according to Vortexa data.

The UAE is the main origin of HSFO cargoes expected to arrive in Singapore in May, accounting for 23pc or 417,500t (86,900 b/d) of the inflows. Iran is the second-highest exporter of HSFO to Singapore this month, accounting for 11.8pc or 214,700t of the inflows. The Mideast Gulf has been taking more cheap Russian fuel oil, owing to Western sanctions on Russian oil imports, resulting in surplus cargoes available for export to Singapore, traders said.

The surge in inflows to Singapore could have partially been because of a spike in delivered bunker premiums here owing to contamination issues previously, a bunker trader added.

With the influx of supply to Singapore, 380cst HSFO east-west spreads for the forward month have fallen steadily since early May, reaching -$0.25/t on 18 May and dropping to -$2.50/t on 19 May. This was the first time in at least two years that they have entered negative territory, according to brokers. The east-west spreads turned positive yesterday, but remained narrow at $3/t.

The weakness of HSFO bunkers contrasts sharply with the strength observed in the VLSFO market, where prompt availabilities have tightened considerably resulting in high premiums and a widening range of reported prices.

Singapore’s bunker sales are about 4mn t/month, of which about 1mn is accounted for by HSFO, according to Maritime and Port Authority (MPA) data.

By Sammy Six and Sarah Giam

Photo credit: Argus Media
Published: 27 May, 2022

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

17 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

17 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

17 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